A perfect storm of the greatest financial opportunities of our lifetimes may be before us, with unprecedented amounts of foreign capital, 18 trade deals in the final stages of negotiation, and upcoming tax cuts.
Nearly $3 trillion of investment commitments in AI have been announced, which span a period of years. Oracle, NVIDIA, and Apple are major players, along with the UAE, Open AI, and Softbank.
Risk is present from China producing less expensive or more powerful chips, or imposing trade restrictions that could greatly impact our tech companies. However, the US is striving to be the dominant world leader of AI, for which It does not take a genius to consider long term holds for Oracle, NVIDIA, and Apple.
In the last 5 weeks NVIDIA has risen 23.6%, up from a low of 94, to 116. However, that is well under their 2025 highpoint of 149. Similarly, the 2025 high of Oracle was 186, but currently is 150, while Apple has dropped 61 points since the day after Christmas, and is now 198, down 23.5%.
Although we may see some significant volatility with trade negotiations in the short term, for the coming years, I would expect the large domestic investments made by these key tech companies to produce excellent returns.
Also, Taiwan Semiconductors is investing $100 billion for producing their chips here, and that stock is down over 21% in the last 2 ½ months. Likely this would also be a very good hold.
What do AI data centers need? Electricity!
By 2030, AI data centers are estimated to require 9% of total electricity usage in the United States, with overall demand for electricity projected to increase by 16%.
AI data centers are planned for Texas, Louisiana, Ohio, North Carolina, and other areas, for which one might look at providers of electricity in those states.
Oncor, that is owned by Sempra, is a major servicer of Texas. The parent company is one of the largest utility holding companies in the US, with current pricing of $75 per share, which is down from $87 in early January, and is paying a dividend of 3.4%.
American Electric Power (AEP) is headquartered in Columbus, Ohio, for which that stock is up almost 14% this year, and paying a current dividend yield of 3.54%. AEP exceeded analyst expectations of earnings per share by 8.1%, while Ohio is experiencing growth with favorable tax legislation.
Several AI data centers are planned for south Florida, while Florida has experienced tremendous population growth, gaining nearly 2 million more residents since 2019. When speaking of electricity to power Florida, one might consider investments in Nexterra, that owns Florida Power and Light, the largest utility in the state, and has a dividend yield of 3.22%.
I also am an advocate for Duke Energy, which is held by numerous pension funds. Duke is one of the three great universities of Research Triangle Park, along with the University of North Carolina and North Carolina State. This area of the country has one of the highest concentrations of PhD’s, for which Apple and others are investing in data centers in North Carolina.
Duke Energy is up about 12% in 2025, which is excellent for a bit over 4 months, and has a dividend yield of 3.47%.
An additional component for not only the construction of AI data centers, but for the expansion of many industries that will benefit from the huge investments being made in the US, is… infrastructure!
This leads one to ETFs for materials. One might take a look at XLB, Vanguard Materials (VAW), and Invesco (PYZ).
What is driving both foreign and domestic investment in the US, is the likely legislation of tax cuts, combined with no tariffs for producing goods in the United States.
This is a one-two punch for an economic stimulus, along with 18 trade deals being in the stages of final negotiation, which hopefully will dramatically increase US production and exports.
This is the first in a series of articles to capitalize on the trillions of dollars of investment commitments that have been announced in recent weeks, along with a multitude of trade deals and tax cut legislation that should be forthcoming. The phrase that comes to mind is that the best time is… NOW!
I encourage the reader to do their own research, and to consult with a competent investment advisor.
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