AI Power Demand Fuels Renewables and Industrials

AI-driven electricity demand is increasing pressure on grids and shifting investment toward renewables and industrial equipment. WEC Energy plans about $28 billion in solar and wind investment from 2025–2029 and maintains a 22-year dividend growth streak, though regulatory and higher financing risks could threaten its outlook. Industrials tied to power demand — notably Caterpillar — have surged (roughly 32% YTD) as investors cite turbine demand and a backlog near $40 billion. StockStory warns that low volatility or strong cash flow alone doesn’t ensure long-term success, naming companies to avoid (including Donaldson, Unum, MSA Safety and Bel Fuse) and flagging vulnerable small-cap or cyclical names such as Qualys, Upstart, Boyd Gaming, Vail Resorts, Arrow Electronics and EVgo. The service also urges caution on some consensus favorites (Delta, Paycom) while endorsing durable-advantage names like Humana and Confluent, and highlights consumer-growth stories such as Dutch Bros (loyalty-driven transactions ~72%, about $89 million profit on roughly $1.4 billion trailing revenue, and a long-term expansion target near 7,000 shops). For dividend-focused investors, Brookfield Asset Management is singled out as a high-quality compounder with roughly $1 trillion in AUM and about $560 billion of fee-based capital.