As the so-called "Magnificent Seven" tech companies report their latest earnings, investors are keenly focused on understanding how their heavy investments in artificial intelligence (AI) will impact their financial results.

To provide insights on this topic, Hennion & Walsh Asset Management president and chief investment officer Kevin Mahn joined Catalysts.

Mahn notes that in the Big Tech earnings reports, "the focus is on AI." He explains that the need for AI-supporting infrastructure, like data centers, is driving increased demand for energy — a trend that could benefit the utilities sector (XLU).

He identifies three fundamental tailwinds that could support utilities and drive growth: utilities are more defensive in nature, the sector is known for paying dividends, and utilities have become a "backdoor play into the AI revolution."

Mahn advises investors to consider three specific utility names: DTE Energy Company (DTE), Duke Energy Corporation (DUK), and The Southern Company (SO).

"There's more growth ahead. So look for those utilities such as the three I mentioned that do have a stake in the ground as it relates to nuclear, but also have a strong customer base, strong balance sheet, and pay good dividends," Mahn tells Yahoo Finance.

To watch more expert insights and analysis on the latest market action, check out more Catalysts here.

This post was written by Angel Smith