George Soros Invests in Utility Stocks Amid Rising AI Power Demand
Billionaire investor George Soros is increasing his exposure to utility stocks, including American Electric Power (AEP) and Entergy (ETR), as global electricity demand rises due to the expansion of data centers and electric vehicles. In Q2, Soros Fund Management opened a new position in AEP with 768,000 shares valued at $105.1 million and significantly increased its stake in ETR from 77,000 to 914,000 shares. The International Energy Agency (IEA) has noted that electricity demand is accelerating globally, with data centers playing a key role. AEP reported Q2 earnings below expectations due to tax-related items and the impact of transmission sales but highlighted strong AI-driven power demand in Texas despite grid constraints. The company secured 69 gigawatts of contracted load through 2030. AEP's stock has underperformed compared to broader market indices, with a forward P/E ratio aligned with its historical average and offering a solid dividend yield.
