Is the power industry worth investing in under the background of AI? How to translate I have been investing in AI research for the past few days. Today, I will talk about electricity Electricity is a very old-fashioned energy industry with total asset investment. What's there to say? Because the coolest electricity is needed by the coolest AI computing power cluster. In the second half of last year, the AI industry's biggest concern was the power shortage. The reason why everyone has the impression of being short of electricity is not because the United States is short of electricity. The counterintuitive aspect is that, The electricity demand for AI (GPU training and inference) accounts for only about 1% to 1.5% of the total electricity generation in the United States. Since the proportion is so low, why is there still a power shortage? Because of various institutional issues in the United States, right It will be difficult to add new electricity in the United States. The Journey to the West scriptures have all been collected, but the power plant has not been built yet. This has led to an investment perspective for the power industry serving the computing power cluster in the United States. First camp: Nuclear power Spot nuclear power is too popular in the United States. It is extremely difficult to add a new nuclear power plant, which the United States cannot achieve in 20 years. Meanwhile, nuclear power plants can also provide stable 24-hour power supply to computing clusters The core enterprise is Vistra+Constellation Energy+Talen The business model is extremely simple, selling land and electricity. Once a large order is signed for the computing power cluster, the stock will rise. Second camp: Traditional energy giants It's just those who deal with wind energy, solar energy, and natural gas energy These typical examples are NextEra Energy and Southern Company Pay attention to the public utilities section here, For example, Southern Company, as a state-owned enterprise, must return profits exceeding 10% to the general public. Therefore, it has little investment value. Third camp: power grid upgrade service providers What do these companies do? They work in the power grid industry Due to the aging of the US power grid, these companies mainly repair and refurbish it Typical examples are GE Vernova and Quanta Services Nima, pure and low tech manufacturing industry Note that all three camps mentioned above must be American assets Are you asking China if there is an AI power shortage It's like a joke Overall, electricity has little investment value. If you are an AI giant, you can acquire nuclear power plants to ensure exclusive power supply in the future But it is not advisable for ordinary retail investors to take over electricity when there is a lot of noise. If you really like it, it's better than a uranium ETF, although it's not good enough