U.S. Energy (US:USEG) Benzinga·2026-01-14 08:36Core Insights - Kevin O'Leary emphasizes that the U.S. is unprepared to support the AI boom due to a stagnant energy grid, which he identifies as a major threat to American AI leadership [1][2][3] Energy Infrastructure - O'Leary highlights a significant gap in energy infrastructure, noting that China has added 500 gigawatts of power in the last 24 months, while the U.S. has added none [2][3] - He warns that without substantial upgrades to the energy grid, the U.S. will struggle to sustain the energy demands of data centers necessary for advancing AI technology [3] Economic Outlook - O'Leary presents a bearish view on the immediate economic relief, stating that investors should not expect rate cuts from the Federal Reserve while Jerome Powell remains Chair [4] - He criticizes current tariff policies as inflationary, arguing that they contribute to the affordability crisis and should be removed to lower consumer costs [5] Market Analysis - The S&P 500's record highs are attributed to AI-driven productivity rather than a robust macroeconomic environment, indicating a disconnect between market performance and economic health [6] - O'Leary stresses that productivity software is ineffective without the necessary hardware and energy to operate it [6] Investment Opportunities - Energy-linked ETFs are suggested for investors to consider in light of the power bottlenecks affecting the AI sector [7] - Performance data for various energy sector ETFs is provided, showing varying returns over different time frames [8]