Utilities Re-Emerge as a Strategic AI Infrastructure Play

DWS’s latest CIO View highlights a shift toward utilities as AI-driven electricity demand, data-centre expansion, and electrification trends create a stronger long-term investment case, while elevated bond yields improve the sector’s relative appeal.

• Utilities were upgraded to an overweight position as rising power demand from AI infrastructure increasingly turns reliable energy supply into a growth bottleneck.
• DWS maintains a neutral overall risk stance but favors duration, citing attractive risk-reward in government bonds and concerns that markets may be underestimating growth risks.
• Within equities, the firm prefers Emerging Markets and Japan, while downgrading Information Technology and Healthcare to neutral after strong performance.

Explore the full report for detailed portfolio positioning, asset-allocation views, and sector-level investment preferences.