AI Utilities
I saw that VST 0.00%↑ was a top holding in a momentum fund. Then found out it is a utility. Note there are two stories with AI, one is data center power demand, one is companies using AI. VST and NRG 0.00%↑ are the latter. Both are probably bubble stories here, but the latter is the weaker of the two. CEG 0.00%↑ is also in the mix.
If it wasn’t for the hype, a good case could be made got utilities breaking out of a base. Here’s NRG for example:
Longer-term that may be the story. Shorter-term, they look like AI-hype stories. Chips are weakening, and one of the AI darlings SMCI 0.00%↑ is tumbling.