But both Hickey and a portfolio manager who spoke with MarketWatch on Thursday noted that the reality of what is driving the utilities rally has little to do with the health of the overall economy.
Instead, the sector has emerged as the latest potential beneficiary of the artificial-intelligence craze, which has driven massive gains for chip stocks like Nvidia Corp. (NVDA) and other companies like Microsoft Corp. (MSFT) that are believed to be at the cutting edge of the new technology.
The first-quarter earnings season has shown that companies like Microsoft and Amazon.com Inc. (AMZN) are dedicating more financial resources to buying next-generation chips and building data centers to power the artificial-intelligence push.
Those data centers will require more power, and investors believe that utilities stocks - particularly those focused on clean energy and nuclear power - will benefit from this expected surge in demand.
Instead, the sector has emerged as the latest potential beneficiary of the artificial-intelligence craze, which has driven massive gains for chip stocks like Nvidia Corp. (NVDA) and other companies like Microsoft Corp. (MSFT) that are believed to be at the cutting edge of the new technology.
The first-quarter earnings season has shown that companies like Microsoft and Amazon.com Inc. (AMZN) are dedicating more financial resources to buying next-generation chips and building data centers to power the artificial-intelligence push.
Those data centers will require more power, and investors believe that utilities stocks - particularly those focused on clean energy and nuclear power - will benefit from this expected surge in demand.
