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To: Johnny Canuck who wrote (67612)	11/4/2025 8:51:57 PM
From: Johnny Canuck	Read Replies (1) \| Respond to of 67880

Investors Boost American Electric Power on AI GrowthWritten by Chris Markoch. Published 10/30/2025. Key Points American Electric Power stock is up 5% after mixed earnings as investors focus on its $72 billion CapEx plan and AI-driven demand growth. AEP raised its long-term earnings growth forecast to 7–9% and plans a 10% annual rate base increase through 2030 to support AI infrastructure expansion. With utilities gaining from the AI data center boom, AEP’s plan to limit rate hikes to 3–5% makes it a stable long-term buy on any pullback. American Electric Power Inc. (NASDAQ: AEP) stock is up roughly 5% after the company reported mixed earnings on Oct. 29. The move extends the stock’s strong 2025 performance, which is up about 31% year to date. AEP reported revenue of $6.01 billion, a 7.9% beat versus estimates of $5.57 billion, but missed slightly on the bottom line. Earnings per share (EPS) came in at $1.80 versus expectations of $1.81. Through the first three quarters of 2025, both revenue and earnings are up year over year. Elon Musk’s Frightening Warning Forces Trump’s Hand (Ad)For the everyday American who's worked hard to build their nest egg, Trump preserved a IRS loophole that allows you to protect your retirement savings before billions in American wealth are lost. Download Your Free 2025 Wealth Protection Guide and execute the simple steps to protect your future. GET THE FREE GUIDE Utilities stocks can be cyclical, but a long-term story is emerging as demand for more energy coincides with the need to modernize aging infrastructure. That dynamic benefits companies like AEP, which owns and operates the largest transmission network in the United States. Many investors have been buying utilities this year as part of a longer-term artificial intelligence (AI) trade. The post-earnings pop in AEP demonstrates that investors are willing to play the long game as the company’s role in expanding AI infrastructure unfolds. The Next Generation of AI InfrastructureThe concept of AI infrastructure is expanding beyond hardware and software. Companies like NVIDIA Corp. (NASDAQ: NVDA) and hyperscalers like Microsoft Corp. (NASDAQ: MSFT) and Meta Platforms (NASDAQ: META) will remain central to this new economy. The power demands from data centers, however, make a compelling long-term case for utilities such as AEP. The company raised its long-term operating earnings growth forecast to 7%–9% over the next five years. To support that target, AEP announced a $72 billion capital-expenditures (CapEx) plan based on an anticipated 10% annual growth in its rate base. The most aggressive growth is expected between 2028 and 2030 as projects come online, though the company guided 2026 earnings to $6.15–$6.45 per share — roughly an 8% increase from its midpoint guidance. Modest Rate Increases Will Be a Win-WinOne downside of the data center buildout is upward pressure on residential electric bills. Preliminary data from the U.S. Energy Information Administration (EIA) indicates a roughly 6% increase in U.S. residential electricity prices in 2025 compared with August 2024. Rising demand from data centers is one driver of that increase. The EIA also projects that data center electricity use in the U.S. has nearly doubled since 2022 and is expected to continue growing into 2026 and beyond. AEP addressed this concern by outlining measures to limit the impact on customers. The company says it will cap residential rate increases at roughly 3% to 5% annually across its system. AEP Remains a Buy-the-Dip Candidate After EarningsInvestors reacted positively to AEP’s update. The stock gapped up on volume of 4.65 million shares (about 138% of its average), pushing the price above October resistance between $117 and $119 and signaling strong bullish momentum that could attract follow-through buying. While not decisive, the combination of today's elevated volume and about 6.8 days to cover short positions could bolster the bull case if short sellers begin to unwind. That said, the MACD has shown a recent bearish crossover, indicating investors may need more than the earnings print to sustain the rally. The Relative Strength Index (RSI) sits around 65 as of this writing, suggesting the stock is getting toward overbought territory. If there is a pullback, the 50-day simple moving average (SMA) should offer broad support and could present an attractive buying opportunity.