Investing in AI without the fanfare? This stock makes a no-compromise purchase decision

Dominion Energy, a leading utility company based in Virginia, is making waves in the industry as it positions itself to benefit from the AI revolution. With a dividend yield of 4.4%, higher than the average utility's yield of around 2.7%, Dominion Energy offers a fat dividend while navigating the exciting landscape of AI.

The company's demand from data centers grew a staggering 88% in the second half of 2024, with most of the growth coming from new buildings that require capacity building and power line construction. This surge in demand is a testament to Dominion Energy's well-located operations in Virginia, a hub for the AI revolution.

Investors are flocking into stocks believed to be AI winners, but Dominion Energy might be a smart choice for those preferring long-term investments. Compared to AI stocks like Nvidia, Dominion Energy presents a lower-risk turnaround story in the utility sector.

However, it's hard to predict which companies are best positioned to benefit from AI. The process of meeting increased demand takes time and requires capital investment plans and regulatory approval. But with its monopoly on serving the power needs of data centers, which are crucial for AI, Dominion Energy, being based in Virginia, is better positioned than any other utility to benefit from the increased demand for electricity due to AI.

The overall growth in electricity demand is expected to increase from 9% between 2000 and 2020 to 55% between 2020 and 2040. One group of companies that will see demand increase significantly is those providing electricity for AI and other electricity-dependent technology. The U.S. electricity demand from AI alone is projected to increase 300% over a decade.

As a result, Dominion Energy's growth is expected to be less slow in the future than it has been in the past. While the company is not expected to turn into a growth stock, it could become an attractive growth and income stock, offering a steady stream of dividends while riding the wave of the AI revolution.

Artificial intelligence (AI) is expected to change the world significantly, and Dominion Energy is poised to be a part of this transformation. Virginia, home to Dominion Energy, is one of the largest data center markets in the world, making it an ideal location for the utility company. With its strong market position and strategic location, Dominion Energy is well on its way to a brighter future in the AI era.

Investing in AI without the fanfare? This stock makes a no-compromise purchase decision