Artificial intelligence is broadening beyond chips and software into a power-and-infrastructure trade, pushing smaller, specialized companies to the forefront. Investors on CNBC’s “ETF Edge” said demand for reliable electricity, cooling and grid resilience is propelling gains for niche players—Bloom Energy has surged more than 500% since last year on data-center fuel-cell orders—while nuclear power and SMRs draw renewed interest and capital. With many segments dominated by only a few providers, operating leverage can be powerful, but high leverage and volatility argue for diversified exposure and active rebalancing. ETF managers said nuclear-focused funds that traded at “nosebleed” valuations have reset, creating more reasonable entry points. The upshot: AI’s next leg may favor small- and mid-cap enablers of power and efficiency, not just Big Tech, but with risk controls front and center.
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