The buildout of AI infrastructure and global geopolitical developments have led the S&P 500 industrial sector to garner investor attention comparable to that of the tech sector. This sector is trading at a price-to-earnings ratio above 30, well above the long-term average for industrials, which is closer to 20.
Industrial stocks such as Caterpillar and GE Vernova have seen significant gains, while ETFs focused on AI infrastructure have attracted considerable investor interest.
McKinsey & Company estimates that global spending on data centers could reach nearly $8 trillion by 2030.
