Institutional Investors Favor AI Infrastructure and Electricity Grids

A synthesis of 29 mid-year outlooks from institutional investment banks and asset managers reveals a strong consensus favoring AI infrastructure and the electricity grids necessary to power data centers. The analysis, which constructed a 17-ETF portfolio based on these views, indicates a cautious approach to traditional equity benchmarks.

While 24 of the surveyed institutions recommend holding US equities, 14 of those specifically identify the top 10 index holdings as a risk. This suggests a preference for targeted AI exposure over broad market indices that are heavily weighted toward a few dominant companies.

Additionally, 18 institutions expressed a positive view of gold. This bullish sentiment persists despite the asset trading approximately 21% below its peak recorded in January.