Elon Musk Says Natural Gas Will Still Be Needed for Data Centers; Gene Munster Sees Power Sector as Next AI Investment Opportunity
Elon Musk highlighted the continued role of natural gas in supporting data centers while his companies, SpaceX and Tesla, scale solar production capacity. He noted that despite advancements in renewable energy, natural gas will remain necessary to supplement power for several years due to limitations in turbine blade manufacturing. Gene Munster, managing partner at Deepwater Management, compared the current moment in the power sector to Nvidia's breakout in 2023 and suggested it is an underappreciated investment theme. He pointed out that since mid-2023, Nvidia shares have surged by over 416%, far exceeding broader market gains. Munster has already been investing in private companies such as Antora Energy and Redwood Materials through Deepwater. Several power-related ETFs are also gaining traction or facing challenges this year, with varying returns based on their focus areas.
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Topics: AI infrastructure Elon Musk investment trends natural gas renewable energy