A good reason to buy shares of electric grids: Nvidia and OpenAi’s AI deal only needs more power than the average demand from New York City!
The demand for artificial intelligence (AI) possibilities is stiffer. Companies quickly build more and larger data centers to train AI models and use AI applications. This build -out looks ready to continue for many years as companies race to go beyond generative AI and reach artificial super intelligence.
This Buildout must have the shares of AI Chip and Infrastructure Leader Power Power Nvidia (NVDA -1.10%)) much higher. But Nvidia will not be the only winner.
It costs a huge amount of electricity to power these AI data centers. The electric schedules in the United States and selected other countries must be widely upgraded and expanded to support the increasing AI-related electricity demand. This fact strongly supports a long -term sale dissertation for scheduled shares.
Image source: The Motley Fool.
The NVIDIA-OPENAI $ 100 billion, 10+ Gigawatt Deal
At the end of last month, Nvidia announced that it is investing up to $ 100 billion in OpenAI, the AI model developer who is best known for its chatgpt -chatbot.
The companies intend to use ” At least 10 gigawatts From NVIDIA systems for the next generation AI infrastructure from OpenAi to train and run its next generation models On the way to deploying super intelligence“For the press release (emphasizes mine.)
10 Gigawatt power in context
Here are a few statistics to place Gigawatt of power in context 10:
- The average power demand from New York City is around 6.5 Gigawatts and the peak demand in the summer is around 10 to 11 gigawatts.
- 10 Large -scale nuclear reactors have a capacity of approximately 10 gigawatts.
What is the electric grid?
The Electric Power Grid is a interconnected network with three main phases. This includes the generation of electricity from various sources (renewable energy sources, fossil fuels and nuclear energy) to the high -voltage transmission lines that transmit electricity over long distances to the low -voltage distribution lines that wear electricity to houses and companies.
Regulated electric utilities are usually involved in all phases. Many other companies are involved in one or more phases of the electric grid – and these companies are the focus of this article. Some do design and engineering work, some manufacturing components and some installation components.
2 Top Electric Grid -Shares to buy
Companies are listed in order of falling size based on market capitalization.
| Company | Market capital | Forward p/e | Wall Street’s estimated annual growth of 5-year profit per share | YTD 2025 Return | Return of 10 years |
|---|---|---|---|---|---|
| Ge Vertova (New 1.25%)) | $ 162 billion | 50.6 |
N / a. 66.2% next year. |
81.1% | N / a. An increase of 354% since started acting in April 2024. |
| Quanta services (PWR 1.75%)) | $ 62.8 billion | 33.4 | 16.9% | 33.4% | 1,630% |
| S&P 500 Index | – | – | – | 15.3% | 310% |
Data sources: Yahoo! Finance, Finviz and Ycharts. P/e = price-gain ratio. EPS = profit per share. Ytd = year to date. Data until Friday, October 3, 2025.
You pay very small dividends, which currently yield around 0.16% and 0.10% respectively.
Ge Vertova
GE Vertova was founded in April 2024 when General Electric completed its split into three separate companies. GE Vertova is a worldwide energy -rich company with three operational segments: electricity, wind and electrification.
The Power Business includes gas, hydro -electric, nuclear and steam. The wind industry produces wind turbines and installs onshore and offshore wind farms. The electrification company offers grid solutions, electricity conversion and storage.
GE Je Vertova is a powerhouse (playing pun) in the industry, as is apparent from this statistics: about 25% of the world’s electricity is generated by its customers who use his technologies, according to the company. The company size must ensure that it continues to benefit from economies of scale.
In the first half of 2025, the turnover of GE Vertova grew by 11% year to year to $ 17.1 billion. The growth was powered by the electrification company, of which turnover increased by 19% to $ 4.1 billion. The turnover of the wind segment rose by 11% to $ 4.1 billion and the turnover of Power grew by 8% to $ 9.2 billion.
The net result based on generally accepted accounting principles (GAAP) fell 36% to $ 756 million. On an adapted basis (which is a better statistics to measure business performance because it excludes one -off items), profit before interest, taxes, depreciation and amortization (EBITDA) rose by 72% to $ 1.23 billion. Adapted organic EBITDA grew by 39% to $ 1.18 billion. (This metriek excludes acquisitions and dispositions in the past year and the impact of foreign currency fair.)
The demand is strong for the products and services of GE Vertova. In the second quarter it grew its backlog by more than $ 5 billion from the first quarter. The total backlog is $ 129 billion.
With a forward price-gain ratio of 50.6, you are reasonably appreciated for a company that expects Wall Street to grow a whopping 66.2% next year.
Quanta services
Quanta is a contractor who offers services, including designing, installing, repairing and maintaining energy and communication infrastructure. The company has two reportable segments: solutions for electrical infrastructure (electric) and underground utility and infrastructure solutions (underground and infrastructure). It is active in the US, Canada and certain other international markets.
In the first half of 2025, Quanta’s turnover grew by 22% year to year to $ 13.0 billion. The turnover of the electric segment increased by 24% to $ 10.4 billion, and the turnover of the underground and infrastructure segment increased by 17% to $ 2.6 billion. Profit growth was also robust, with GAAP -Netto income by 22% to $ 374 million, which translated into profit per share (EPS) by 20% to $ 2.47.
There is a strong demand for the services of the company. It ended the second quarter with a total backlog of $ 35.8 billion.
Quanta had a remarkable contract victory in Q2. It was selected by Idaho Power – a subsidiary of Idacorp -For the Boardman to Hemingway High voltage project Electric Transmission. This project includes a new transmission line of approximately 300 miles, 500 kilovolts running from eastern Oregon to Southwest-Idaho. Quanta offers design, engineering, purchasing, environmental and building solutions. This project is designed to deliver bidirectional electricity up to 1,000 megawatts (or 1 gigawatt).
With a forward p/e of 33.4, Quanta shares is a bit pricey for a company that expects Wall Street to grow the profit with an average annual rate of 16.9% in the next five years. But investors have to expect to pay for quality. Moreover, it seems to me that Wall Street could underestimate the profit growth potential of Quanta.
In short, the electric grid must be considerably upgraded and expanded to be expanded to support the increasing AI-related electricity demand. And the shares of selected companies that perform this work must make attractive long -term investments.
