** Shares of U.S.-based utilities rose in 2024 with Vistra Corp VST.N gaining nearly 260% YTD and Constellation Energy CEG.O 91.3% YTD
** VST is the second biggest gainer in the S&P 500 .SPX, higher than A.I. favorite Nvidia NVDA.O
** Utility gains this year has been helped by a surge in demand for power for growing artificial intelligence needs and data center expansions
** Utilities are often referred to as "bond proxies," for their strong, stable dividends that compete with Treasury yields
** In September, CEG and Microsoft MSFT.O had signed a power deal to help resurrect a unit of the Three Mile Island nuclear plant in Pennsylvania
** Public Service Enterprise PEG.N up 37.6% YTD and NiSource NI.N up ~38% YTD
** "Sector strength in 2024 has been underpinned by stabilizing rates and inflationary expectations throughout the year, greater uncertainty created by the election cycle for many non-utility sectors," said KeyBanc Capital Markets earlier in December
** Brokerage said the growing realization among investors that AI-driven electricity demand is not a fad has been translated into tangible load growth and earnings per share growth target revisions
** NextEra Energy NEE.N and Evergy EVRG.O also up ~18% YTD and 17.3% YTD
(Reporting by Pooja Menon in Bengaluru)
((Pooja.Menon@thomsonreuters.com;))
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