The artificial intelligence (AI) boom has largely been framed around semiconductors, but a new industry note from Wedbush Securities suggests investors may be looking in the wrong place.

Behind the surge in AI demand lies a more fundamental constraint: electricity. That's where the Dan IVES Wedbush AI Revolution ETF (IVES  ) comes into focus.

Built around Wedbush's "Power 30" theme, the ETF offers exposure not to chipmakers, but to the infrastructure enabling AI - from utilities and grid equipment makers to data center operators and nuclear energy firms.

The timing is notable. Hyperscalers are expected to spend $725 billion on AI infrastructure in 2026, up 77% year-over-year, with demand continuing to outpace expectations.

From Silicon To Electricity

Wedbush's latest industry update shows that AI demand is translating into real earnings momentum across power-linked sectors.

Companies tied to the theme have delivered broadly strong results, with every reported firm in the Power 30 either beating expectations or raising guidance.

Examples are piling up:

  • GE Vernova Inc (GEV  ) booked $2.4 billion in data center electrification orders in a single quarter
  • Bloom Energy Corp (BE  ) posted a 39% revenue beat and 255% EPS surprise
  • Southern Company reported 42% growth in data center electricity demand
Together, they point to a shift: the AI trade is moving beyond chips to the physical systems powering them.

Policy Tailwinds Strengthen The Case

The thesis is also gaining support from policy and regulation.

Recent U.S. actions, including nuclear licensing reforms and the use of the Defense Production Act to boost grid equipment manufacturing, are directly addressing bottlenecks in power supply.

At the same time, major tech firms have committed to self-funding power infrastructure, effectively locking in long-term demand.

Why IVES Stands Apart

Unlike traditional AI ETFs that are heavily concentrated in semiconductors, IVES targets a broader, less crowded segment of the value chain.

Its holdings span regulated utilities, grid infrastructure providers, and energy producers. These sectors benefit from long-term contracts, pricing power, and structural supply constraints.

In other words, while much of the market chased AI's computing layer, IVES is positioned around its most critical input.

The next phase of the AI trade may not be about faster chips, but about who can keep the lights on.