The Rise of AI: Goldman's Top Stocks of the Second Phase

The technology sector has experienced remarkable development in recent years, not least due to the increasing importance of artificial intelligence (AI). Even though technology stocks flourished during the pandemic, their performance has gained further momentum with the adoption of AI-based innovations. Goldman Sachs recently published a list of the most promising phase-2 AI stocks, in which the Public Service Enterprise Group (PEG) also found a place. Currently, a particular focus is on an AI company whose stock has risen by an impressive 1,100% since October 2022, leaving many investors in awe. This outstanding performance proves the transformative power of AI technology, which is being adopted across various sectors. The role of AI data centers is not to be underestimated, and OpenAI's vision to establish as many as seven of these centers in the US, each requiring 5 gigawatts of energy, shows the enormous potential and growing energy demand. Goldman Sachs has divided the AI market into four categories, with the second group—consisting of utilities and infrastructure providers—deserving particular attention. This includes the Public Service Enterprise Group, which recently managed to implement its first price increase in six years. Despite regulatory challenges, the company remains strategically well-positioned through its activities in renewable energy and data center supply. The outlook for the AI sector remains optimistic. Studies predict a significant increase in energy consumption in the US due to AI, rising to 130 gigawatts by 2030. Companies in this sector could potentially benefit from similar stock gains as the "Wall Street darling" among AI stocks. The future development promises exciting investment opportunities that could provoke thoughtful consideration.