Artificial Intelligence: 'Picks and shovels' companies profit from data centre scramble
Caterpillar and Hochtief among the once-staid industrial stocks lifted by the AI boom
The AI boom is lifting the fortunes of hundreds of formerly drab industrial, utility and mining companies as investors turn to the "picks and shovels" needed to build and power vast data centres.
More than 200 public companies – from makers of jet engines to air conditioning – that are linked to supply chains for data centres or semiconductors have outperformed the MSCI World Index, which rose over 21 per cent over the year ending June 9, according to FT research. This takes into account the sell-off that hit technology and AI-linked stocks on Friday amid fears of interest-rate hikes.