Exelon: A Smart Investment for Yield and AI-Fueled Demand

Exelon is a smart bet for yield and surging demand, according to finance expert Richard Drury. The company's utility business enables AI growth and is priced accordingly. Drury considers select utilities as "pick and shovel" plays that support AI development. Exelon's diversified portfolio and growing demand for its products make it a strong investment option.

Exelon (EXC) has been making waves in the utility sector, particularly with its focus on AI-driven growth. According to finance expert Richard Drury, Exelon is a strong investment option, especially for yield and surging demand. The company’s utility business not only supports AI development but is also priced accordingly, making it a "pick and shovel" play in the AI revolution.

On August 5, 2025, Exelon's stock fell 1.06% to $44.69, with a 21.86% volume drop, ranking it 462nd in U.S. equity trading [2]. Despite the recent drop, Exelon reported Q2 2025 earnings of $0.39 per share, beating estimates by $0.02. The company also announced significant grid upgrades, totaling $96 million, and a $0.40 per share dividend, yielding 3.6% [2]. These developments highlight Exelon’s commitment to infrastructure modernization and shareholder returns.

Institutional investors have shown strong interest in Exelon, with holdings increasing by over 300% in Q1 2025. Analysts have raised price targets to $50, despite modest revenue growth and a stable debt-to-equity ratio of 1.66. The company’s infrastructure projects and dividend policy are seen as key drivers for long-term value, though near-term revenue growth remains modest [2].

Exelon’s utility subsidiary, ComEd, has been proactive in aligning with broader electrification goals. The company has also partnered with Prologis to develop 45 rooftop community solar installations in Illinois, underscoring its focus on renewable energy integration [2].

Drury’s perspective aligns with the broader trend of utilities being seen as key enablers of AI growth. As AI applications scale rapidly, powering and deploying this technology requires robust infrastructure. Companies like CoreWeave, IREN Limited, and Nebius are emerging as critical enablers of the AI revolution, providing the necessary infrastructure to support AI workloads [3].

In conclusion, Exelon’s diversified portfolio and growing demand for its products make it a strong investment option. The company’s focus on infrastructure modernization and renewable energy integration positions it well for long-term growth. While near-term revenue growth may be modest, Exelon’s strategic initiatives and institutional investor support suggest a promising outlook.

References:
[1] https://www.biospace.com/press-releases/tevogen-receives-1-million-to-accelerate-ai-driven-drug-discovery-remains-well-capitalized-to-execute-growth-strategy
[2] https://www.ainvest.com/news/exelon-21-86-volume-drop-sends-stock-462nd-rankings-infrastructure-push-dividend-hike-2508/
[3] https://www.investing.com/analysis/3-ai-infrastructure-stocks-powering-the-next-tech-revolution-200665031