economy

March 5, 2026

This group of stocks is a perfect way to play this fraught market, says Wells Fargo

Select utilities offer ways to play the AI boom while also hedging against rising geopolitical risks, the firm found.

This group of stocks is a perfect way to play this fraught market, says Wells Fargo

TL;DR

  • Utility stocks can serve as defensive plays against geopolitical risks and market volatility.
  • The sector is also a beneficiary of the AI boom due to the high energy demands of data centers.
  • Utilities historically outperform the S&P 500 during global conflicts and recessions.
  • American Water Works is recommended for its regulated water and wastewater services, insulation from macro cycles, and role in supporting AI data centers.
  • Exelon is suggested for investors looking to play the AI trade while benefiting from durable cash flows and infrastructure upgrades that will serve data center clients.

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