American Electric Power's 30% Capex Surge to 70 Billion Drives 15% Stock Rally as Daily Trading Volume Dips 46% to 269th Rank

American Electric Power (AEP) reported a 0.10% decline in its stock price on July 31, 2025, with a trading volume of $0.53 billion, down 46.43% from the previous day, ranking 269th in market activity. The company announced plans to increase its five-year capital expenditure (capex) budget by 30% to $70 billion, driven by strong demand and projected 24 gigawatts of new load growth over the next five years. Executives highlighted surging commercial and industrial demand, particularly from data centers, which contributed to a 6% quarterly load growth for the fourth consecutive period. CEO Bill Fehrman emphasized the firm’s preparedness to meet customer commitments, including 3 gigawatts of secured capacity from data center operators and manufacturing firms, alongside 190 gigawatts of additional load under consideration.

The capex expansion will prioritize transmission infrastructure (50% of spending), followed by new generation assets (40%) and distribution buildouts (10%). This follows a prior capex increase last year and aligns with broader economic trends, including manufacturing reshoring and business expansion. AEP’s second-quarter results showed a net profit of $1.2 billion on $5.1 billion in revenue, aided by a $499 million boost from a Federal Energy Regulatory Commission order. Despite a recent 4% post-earnings rally, the stock has risen over 15% in six months, reflecting investor confidence in the utility’s growth trajectory.

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