And they use the paradox in the original sense, energy. Back in the day Jevons was talking about coal.
From Barron's, January 29:
3 Stocks That Will Win From the ‘Jevons Paradox’
Falling costs of artificial intelligence computing will yield some winners, just as the emergence of AI itself has.
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.....Obin points out that while hyperscalers account for about 25% of total data-center capacity, so-called colocators make up about 50%. Those are companies whose computers are at server farms run by third parties. That business segment isn’t growing like the hyperscalers, but if AI gets cheaper, it could.
That is the basis of Marc Andreessen’s “Sputnik moment” tweet from Sunday. The Soviet Union launched its Sputnik satellite in 1957, marking the start of a space race between the U.S. and the Soviet Union. The U.S. federal space budget went from about $500 million a year to $10.5 billion in 1958, Obin points out.
Obin isn’t changing his assumption for 2.8% annual growth in U.S. electricity demand from 2023 to 2030. That growth underpins demand assumptions for a host of companies that make electrical components, cooling technology, and grid equipment.
Growth of 2.8% might not sound like a lot, but it is way faster than in recent history. U.S. electricity demand growth grew less than 1% annually between 2013 and 2023.
What about the stocks? Obin has Buy ratings on shares of the data-center infrastructure provider Vertiv , the electrical equipment maker Eaton , and GE Vernova ,
a provider of power-generation technology.Vertiv stock dropped almost 30% Monday, closing at $102.60. GE Vernova stock fell more than 20% to $330. And Eaton shares slid about 16%, ending the day at $311.55.
Obin’s price target for Vertiv stock is $165. His targets for Vernova and Eaton are $485 and $410, respectively. Those prices imply an average gain of about 45% from Monday’s closing levels....
....MUCH MORE
GEV is up $3.61 to $358.73, and of possibly greater interest—if it's possible to get more interesting than natural gas-fired turbines—line-slinger Quanta Services is up $5.90 (+2.01%) at $299.89.
Recently on GE Vernova- "Chevron Partners With GE Vernova and Investment Firm Engine No 1 To Power Data Centers (CVX; GEV)"
Jevons made a couple of appearances in this morning's "ASML CEO Says DeepSeek’s Emergence Is ‘Good News’ for AI".
