AInvest Newsletter
Daily stocks & crypto headlines, free to your inbox
Impact of AI Bubble Popping on Electric Utilities and Pinnacle West
ByAinvest
Tuesday, Dec 2, 2025 1:34 pm ET1min read
The article discusses the potential impact of the AI bubble popping on electric utilities, such as the Utilities Spider ETF (XLU) and Pinnacle West (PNW). The authors argue that while electric utilities are not part of the AI bubble, they benefit from the increasing demand for electricity driven by AI. The authors explore three possible scenarios for the AI bubble popping: failed ROIC of technology, intense rivalry with lowered barriers to entry, and low ROIC but necessary spending to remain relevant. They conclude that paths 2 and 3 would not significantly impact demand for electricity, while path 1 would be negative for electric utilities.
Ainvest News articles are AI-generated using advanced large language model (LLM) technology designed to analyze and synthesize publicly available data and news. While AI tools assist in producing initial drafts and insights, all AI generated content published on Ainvest is subject to comprehensive human editorial review before publication. A designated human editor reviews, verifies, and approves each article for factual accuracy, coherence, and compliance with AInvest Fintech Inc’s editorial and disclosure standards.
Despite these review procedures, the information provided may still contain inaccuracies, incomplete data, or time sensitive references due to the inherent limitations of AI generated analysis and evolving changes. The material is provided strictly for informational and educational purposes and does not constitute personalized investment, legal, or financial advice. Readers should independently verify all facts, figures, and statements before making any decision based on this content.
AInvest Fintech Inc. its affiliates, and partners accept no liability or responsibility for any direct or consequential losses arising from reliance on this content. All articles and analyses are subject to revision, update, or removal without prior notice to maintain accuracy and integrity in our publications.
Comments
No comments yet