Watch the full breakdown: https://youtu.be/fF2IMfaWIjU

The renewable energy sector has faced significant pressure recently, driven largely by political uncertainty and shifting policy direction. However, beneath the surface, a much larger structural trend is emerging.

Artificial intelligence is rapidly increasing electricity demand, particularly through the expansion of data centers and server farms. In the United States alone, power demand tied to this growth is expected to nearly triple by 2028. The current grid is not equipped to handle this surge.

While much of the attention has been placed on generation, including wind, solar, nuclear, and natural gas, the real constraint lies elsewhere.

The Real Bottleneck: Transmission

Electricity generation may capture headlines, but transmission infrastructure is the critical limiting factor.

Regardless of political outcomes or policy shifts, electricity still needs to move from where it is generated to where it is consumed. This makes transmission and distribution assets one of the more stable and reliable ways to benefit from rising demand.

Unlike renewable generation, which is subject to political cycles, infrastructure remains essential under any scenario.

A Closer Look at Exelon

One company positioned within this infrastructure layer is Exelon Corporation (NASDAQ: EXC).

Exelon operates across electricity transmission, distribution, and retail energy services, serving residential, commercial, and industrial customers across the United States.

From an investment perspective:

• Dividend yield sits around 3.5%
• Estimated upside exceeds 25%
• Target valuation is approximately $62.50

While the yield is modest, the combination of stable infrastructure exposure and potential upside makes it an attractive candidate in the current environment.

More importantly, Exelon stands to benefit regardless of whether renewable expansion accelerates or slows, as long as electricity demand continues to rise.

The Bigger Picture

The key takeaway is simple.

Renewables may be a political trade. Infrastructure is a structural one.

With AI-driven demand reshaping the energy landscape, the most consistent opportunity may lie in owning the systems that enable electricity flow, not just its production.

Quick Update: Berkshire Hathaway

A prior sell recommendation on Berkshire Hathaway (BRK.B) continues to play out.

The stock had reached elevated valuation levels relative to book value, and recent price action suggests downside risk remains.

Historically, the stock has revisited its mid and normal valuation levels multiple times. With leadership transition to Greg Abel and potential capital allocation changes such as share buybacks, the margin of safety appears reduced compared to prior cycles.

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