The fanaticism surrounding the field of artificial intelligence is rapidly spreading in the stock market. Early Thursday morning Beijing time, “the most important stock on Earth”$NVIDIA (NVDA.US)$Financial results for the first quarter will be announced.

As the third-most important stock in the S&P 500 index, Nvidia's performance will obviously not only affect chip stocks, which affects the AI market as a whole. Industries from the Internet to energy to utilities are eagerly awaiting Nvidia's explosive strong earnings report, injecting upward momentum into the sector.

According to Bank of America data, since the first quarter of 2023, the number of references to AI in earnings conference calls of listed companies has soared by 186%. Initially, the market only focused on things like Nvidia and$Advanced Micro Devices (AMD.US)$AI chip makers like this, but soon, the AI boom spread$Alphabet-A (GOOGL.US)$,$Meta Platforms (META.US)$,$Amazon (AMZN.US)$und$Microsoft (MSFT.US)$A terminal application company for AI technology, etc.

Today, Wall Street analysts are expanding their focus to industries such as energy, utilities, and commodities, believing that the development of AI will bring about a surge in demand for computing power, thereby boosting the benefits of these industries.

This transformation is already evident in the market. The non-ferrous metal sector, such as copper as a raw material for cables, is believed by the market to be expected to benefit from AI spending, and prices have hit a recent high. Energy and utilities were the two best performing sectors in the S&P 500 index this year, rising about 15% and 13% respectively. US Electric Power Stocks$Vistra Energy (VST.US)$und$Constellation Energy (CEG.US)$Following Nvidia, the stock price soared like a rocket, rising about 140% and 90%, respectively, this year.

Mike Wilson, chief investment officer at Morgan Stanley, rated the utilities sector as “overrated” in Sunday's report on the grounds that the sector “can benefit from the energy demand theme brought about by AI.” He anticipates that, driven by demand for AI data centers, the share of US electricity consumption used for AI may rise from 3% in 2023 to around 10% by 2030.

Wilson thinks:

Whether it is a traditional energy provider or a new energy company, earnings expectations can be raised as long as more favorable data center power supply agreements are obtained.

Energy companies are also strongly highlighting their role in AI construction. The Goldman Sachs stock strategy team said that in the first quarter of this year, the number of times US business executives mentioned AI soared in conference calls. Among them, the percentage of people in the energy industry that mentioned AI rose to over 66% from 19.1% in the previous quarter.

So far, Nvidia's performance has continued to exceed market expectations, and demand for AI server chips shows no sign of cooling down.

However, if, in Nvidia's first quarter earnings report, this demand shows signs of slowing down, I'm afraid it will trigger major adjustments in various sectors, from AI applications to electricity.

Jack Manley, a global market strategist at J.P. Morgan Asset Management, warned:

If the market finally realizes that it is overexcited about AI, overdraft some earnings expectations ahead of time, and reflect it in valuation, it may bring about a period of turbulence.

Editor/Somer