00:00It's Benzinga, bringing Wall Street to Main Street.
00:03Investors are pouring into industrial stocks, pushing the sector's valuation as the AI
00:08infrastructure build-out accelerates and defense spending rises, according to CNBC.
00:12The industrial sector of the S&P 500 is trading at a price-to-earnings ratio above 30, well
00:18above its historical average, near 20.
00:20Vedify's Cynthia Murphy said industrials are benefiting from demand for the infrastructure
00:25needed to support AI, including electrical equipment, construction machinery, and power
00:30systems.
00:31McKinsey estimates global data center spending could reach nearly $8 trillion by 2030, with
00:37most of the investment going toward infrastructure and IT equipment.
00:40Companies such as Caterpillar and GE Vernova have rallied alongside the trend, while industrial
00:46ETFs have attracted billions of dollars in investor inflows this year.
00:49Murphy said aerospace and defense spending has also boosted the sector.
00:53For all things money, visit Benzinga.com.
