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Vanguard Utilities ETF rated Buy with 12-14% return amid $1.3T CapEx from AI data centers.

Analyst Insights
19 May 2026
Seeking Alpha
View Source
Bullish
pluang ai news

The Vanguard Utilities Index Fund ETF (VPU) is rated a Buy, with a projected return of 12-14%. This positive outlook is driven by a $1.3 trillion capital expenditure cycle fueled by rising electricity demand from AI data centers. The CapEx cycle supports an expected earnings per share growth of 6-8%. However, risks include potential political resistance to rate hikes and the possibility of data center overbuilding, which investors should monitor.

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