We recently compiled a list of 35 AI news and notes you can’t miss. In this article, we’ll take a look at where Micron Technology (NASDAQ:MU) stacks up to other AI stocks to watch.
Data center investments by hyperscalers to get ahead of the artificial intelligence (AI) race are a hot topic on Wall Street. A latest study on the subject from the consulting firm McKinsey sheds additional light on the European market in this regard. According to the McKinsey report, data center power consumption in Europe is expected to almost triple by 2030, which will require a significant increase in electricity supply, particularly from low-carbon sources, as well as a modernization of network infrastructure. McKinsey estimates that total data center IT load demand in Europe is expected to reach around 35 gigawatts (GW) by 2030, up from 10 GW currently. Current trends also indicate that power consumption in the region’s data centers is expected to triple to more than 150 terawatt hours (TWh) by the end of this decade.
Learn more about these developments by accessing 10 Best AI Data Center Stocks And 10 Hot AI Stocks According to Goldman Sachs.
The report further reveals that data centers are expected to account for around 5% of Europe’s total electricity consumption over the next six years, up from around 2% currently. Meeting this growing demand will require a minimum investment of approximately $300 billion in data center infrastructure, excluding power generation capacity. The report also highlights that meeting growing electricity demand will require a substantial increase in supply, representing a significant change for Europe, where overall electricity demand has remained largely unchanged since 2007. CBRE’s Kevin Restivo recently highlighted that demand for data center space in Europe is set to exceed the delivery of new inventory for the third year in a row and demand for AI will exacerbate the problem.
Learn more about these developments by accessing 30 The Most Important AI Stocks According to BlackRock And Beyond Tech Giants: 35 Non-Tech AI Opportunities.
Our methodology
For this article, we selected AI stocks by combing through news articles, stock analyzes and press releases. These stocks are also popular among hedge funds.
Why are we interested in stocks that hedge funds are piling into? The reason is simple: our research has shown that we can outperform the market by imitating the stocks selected by the best hedge funds. Our quarterly newsletter strategy selects 14 small- and large-cap stocks each quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
