Geopolitical turmoil is in the driver’s seat, and it’s shaking up more than just oil charts. Rising tensions of the war involving Iran, Israel, and the United States have pushed crude prices sharply higher, breathing new life into energy stocks. Meanwhile, high-growth tech – especially artificial intelligence (AI) names – has started to feel the heat, as investors rotate toward sectors seen as more resilient in uncertain, inflationary environments.
And here’s the irony the market is slowly waking up to – AI does not exist in isolation. Every data center and chip runs on massive amounts of energy. Without that, the pace – and profitability – of AI expansion weakens. That dynamic is slowly making one wonder how it values energy relative to tech.
