Investors overlook energy stocks amid AI boom, missing crucial infrastructure demand, says Ted Oakley.

Ted Oakley of Oxbow Advisors warns that while Wall Street chases AI growth, it ignores the massive energy and commodity needs to power AI data centers. Energy stocks now represent only about 3% of the S&P 500, down from 32% in the 1980s, creating a potential market imbalance. Oakley advises investors to buy energy stocks first, anticipating a sharp rotation as institutions realize their underallocation. His portfolio includes major integrated energy companies and infrastructure firms, focusing on dividend yields between 4% and 10%. He also cautions passive investors relying heavily on tech-focused index funds about potential wealth risks if market leadership shifts away from mega-cap tech stocks.