Shares of power producers fell, but not by as much as the broad market, as traders rotated out of high-risk tech sectors into defensive areas.
Utilities have benefitted from a sharp increase in demand from artificial intelligence infrastructure needs, but the power producers still have a broad base of demand and have written supply contracts conservatively, according to analysts at brokerage BTIG and others.
Minneapolis utility company Xcel gained ground after it reiterated its adjusted earnings forecast for the year, anticipating robust power demand from data-center developers.
“Utilities are proving out defensively,” said Alex Kania, analyst at brokerage BTIG, in a research note. “While the regulated [utilities] clearly are experiencing enhanced earnings growth due in no small part to new data centers, and there is definitely more political scrutiny on rates, they have maintained their defensive nature.”
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
February 05, 2026 18:06 ET (23:06 GMT)
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