Investors Pivot to AI "Backbone": Energy and Infrastructure Over Shadow Big Tech for 2026
Investors, as reported by BlackRock, are increasingly favoring energy and infrastructure companies for their 2026 artificial intelligence (AI) investments over major tech firms due to worries about uncertain returns on capital for big tech and a desire to manage market concentration risks.
Key Insights
Diversification from Big Tech: AI and big tech stocks dominated returns in 2025, but as large tech companies like Microsoft, Meta, and Alphabet embark on a multitrillion-dollar race to build data centers, investors are seeking more diverse opportunities in the broader AI ecosystem.
Focus on the AI Backbone: Over half of the investors surveyed by BlackRock favor energy suppliers that power data centers, while 37% prioritize infrastructure as their top AI investment choice.
Leveraging Up: The massive, front-loaded capital expenditures required for AI infrastructure, combined with back-loaded revenues, mean AI builders are increasing their debt. This has led investors to favor sectors with more immediate and tangible returns on capital.
Prominent Companies Mentioned
Based on the BlackRock report and related analysis, investors are looking at companies such as:
Energy Providers: NextEra Energy (NEE), Vistra Corp. (VST), and Talen Energy (TLN) are considered potential stocks in this sector due to strong power demand.
Infrastructure Builders: Companies like Quanta Services (PWR) and Vertiv Holdings (VRT) are top picks in the infrastructure space.
Utilities: BlackRock favors utilities broadly, as they are part of the physical backbone supporting AI operations. One top pick is SSE (SSE) in the UK.
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