Recently, Alex Monk, Schroders global investment manager of the Global Resources Equity Portfolio, pointed out that the financial markets are currently very focused on industries that directly benefit from artificial intelligence, including large technology and data center companies, as well as companies that provide base load electricity for the grid. However, there are more companies, including those in the sustainable energy sector, that can benefit from ongoing structural changes. While electrical equipment, renewable energy equipment, and traditional and renewable energy generation all have significant future profit growth potential, the valuation differences highlight the potential for energy transition stocks to benefit from AI growth. Alex Monk stated that after experiencing a tough year, energy transition companies showed strong stock price performance by the end of 2023. However, at the beginning of 2024, energy transition stocks still face challenges due to unfavorable cyclical factors. High inflation, strong economic data, continued large-scale fiscal spending by various governments pushing bond yields higher have put pressure on the valuation of energy transition industry stocks. Additionally, weak profit expectations for major consumer industry companies and certain companies being affected by declining electricity prices have further exacerbated the difficulties faced by the energy transition industry. Despite short-term challenges, initial indications show a positive outlook. Consumer-driven market demand is beginning to stabilize, excess inventory issues in electric vehicle charging and heat pump technology are gradually being resolved, and demand for residential solar energy companies is expected to rebound within the year. The fundamentals of utility-dominated markets are also becoming clearer, with stable demand, normalizing supply chains, and regulatory agencies adapting to new macroeconomic systems. Furthermore, the strong profitability of the electrical equipment industry and other less cyclical markets should not be overlooked. The industry's attractive valuation is evident from the new stock buybacks and acquisitions in the energy transition sector. Alex Monk also pointed out that the rapid growth of generative AI is accelerating the demand for electricity. The expansion of data centers, the increased energy intensity of AI computing demands, and decarbonization goals are all providing unique opportunities for profit growth in the entire energy transition industry. Meeting the growing energy demand of AI through decarbonization cannot rely solely on nuclear power or carbon capture with natural gas. This will require cheap and readily available renewable energy sources such as wind, solar, geothermal, hydro, backup storage, and electronic fuels. Even if gas turbines or nuclear power become the preferred power source for data centers, a tight energy market will drive up electricity prices and benefit sustainable energy providers.