Infrastructure Stocks Outlook: Power Demand Drives Growth
Dennis Mitchell, CIO and CEO of Starlight Capital, shared his outlook on Infrastructure Stocks in an interview.
The sector has been selling off consistently since July, with midstream, electric utilities, liquefied natural gas (LNG), and rails leading the gains. However, toll roads, airports, and communications have lagged behind.
Mitchell pointed to power demand as a key driver of growth in the sector. He noted that U.S. electricity demand is forecast to grow three to five per cent annually through 2030, driven by data centers and grid-reliability spending.
He highlighted Siemens Energy as one of his top picks, citing the company's strong performance in the third quarter with orders reaching a record €17.9 billion and revenue up 19 per cent year-over-year.