Big Tech Hires Energy Experts, 34% Growth in 2024
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 14 2026
0mins
Source: CNBC
- Significant Hiring Surge: In 2024, tech companies saw a 34% year-on-year increase in energy-related hiring, reflecting a strong demand for energy experts to support their AI expansion and data center power needs.
- Data Center Power Demand: According to the International Energy Agency, data centers accounted for 1.5% of global electricity consumption in 2024, marking a 12% increase over the past five years, indicating major challenges for Big Tech in meeting power demands.
- Acquisitions and Talent Wars: Google plans to acquire data center company Intersect for $4.75 billion while adding 340 energy-related hires since 2022, showcasing its strategic positioning in the energy market.
- Power Purchase Agreements: Meta has signed power purchase agreements with small modular reactor company Oklo, further solidifying its position in the energy sector, while Amazon, Google, and Microsoft have received approval to act as electricity traders, allowing them to sell excess power back to the grid.
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Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise
44 Analyst Rating
41 Buy
3 Hold
0 Sell
Strong Buy
Current: 227.010
Low
175.00
Averages
280.01
High
325.00
Current: 227.010
Low
175.00
Averages
280.01
High
325.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Tax Refund Impact: CFRA Research analyst noted that tax refund amounts increased by 11.1% to $3,462 in 2026, providing financial support for consumers to make purchases they had previously delayed, although this factor will not be present in the fall and winter months.
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- Portfolio Rebalancing: Investors are reminded to reassess their portfolios amid market volatility, particularly those heavily weighted in high-risk tech stocks, as they may need to consider reducing exposure to mitigate risks, even though current exit prices are significantly lower than previous highs.
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See More
Market Valuation and Risk Analysis
- Current Market Valuation: The CAPE ratio of the S&P 500 is currently at historical highs, which typically correlates with lower long-term returns; however, history shows that expensive markets can remain elevated for years without an imminent crash.
- Market Concentration Issue: A small group of tech companies, including Nvidia, Microsoft, and Apple, now represents a significant portion of the S&P 500's market value, increasing market dependency on these stocks, which could lead to substantial impacts on the broader market if investor sentiment shifts.
- Historical Lessons: Historical data indicates that the stock market loses an average of 10% of its value annually, with 20% declines occurring every four to five years; however, the exact timing of the next major downturn remains unpredictable, necessitating vigilance among investors.
- Investment Strategy Recommendations: Historical experience suggests that maintaining a diversified portfolio and focusing on business fundamentals is more reliable than attempting to predict the exact timing of market crashes, as disciplined investing often yields better returns.
See More
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- Market Volatility Impact: Recent declines in tech stocks like Alphabet and Amazon, which have dropped over 10%, indicate growing skepticism about the resilience of AI stocks, potentially prompting investors to reassess their risk exposure and impacting overall market sentiment.
- Portfolio Adjustment Recommendations: In the current market climate, investors are advised to consider reducing their holdings in high-risk tech stocks, particularly those that have inflated due to the AI hype, highlighting the importance of diversifying investments ahead of time to mitigate future losses.
- Long-term Investment Strategy: While tech stocks face short-term pressure, investors may need to rethink their investment strategies in the long run, as sectors like energy and healthcare could emerge as new investment hotspots amid rising inflation and interest rates.
- Risk Management and Diversification: Investors are encouraged to remain sensitive to risks while adjusting their portfolios, gradually increasing investments in more stable stocks to navigate market uncertainties and ensure the health and sustainability of their investment portfolios.
See More
Amazon's Prime Day Sales Exceed $26.4 Billion Amid Inflationary Pressures
- Sales Growth: According to Adobe Analytics, U.S. consumers spent over $26.4 billion during Amazon's Prime Day from June 23 to 26, marking a 9.3% year-over-year increase, indicating that consumers are still purchasing durable goods despite high inflation.
- Discount-Driven Purchases: The strong discounts during the four-day Prime Day event drove shoppers to buy higher-priced items such as electronics, toys, and appliances, suggesting that retailers may need to continue offering deep discounts to clear inventory ahead of the holiday season.
- Tax Refund Impact: CFRA Research analyst noted that tax refund amounts increased by 11.1% to $3,462 in 2026, providing financial support for consumers to make purchases they had previously delayed, although this factor will not be present in the fall and winter months.
- Consumer Fatigue: Despite discounts being on par with last year, the average order size dropped from $53.34 to $47.66, indicating a waning consumer strength as shoppers strive to make smarter purchases with their limited budgets.
See More
U.S. Retailers See Significant Online Spending Growth
- Total Online Spending: U.S. retailers generated $26.4 billion in online spending from June 23 to June 26, reflecting a 9.3% year-over-year growth that surpassed Adobe's forecast of 9.0%, indicating strong consumer engagement during summer sales events, nearing the spending levels seen during the 2025 Thanksgiving to Cyber Monday period.
- Mobile Shopping Dominance: Mobile devices accounted for 54.2% of online sales during the Amazon Prime Day event, reaffirming the dominance of mobile shopping and highlighting consumer preference for convenient purchasing methods, which significantly contributed to overall sales growth.
- Strong Category Sales: Sales in electronics surged by 120%, appliances by 90%, and tools and home improvement by 70%, demonstrating robust consumer demand for high-value items during promotional periods, which further bolstered retailers' sales performance.
- Discounts Attract Consumers: Discounts on electronics peaked at 24%, consistent with last year, as consumers showed a greater propensity to purchase during promotional events, particularly in categories like toys, appliances, and personal care products, indicating intensified market competition.
See More
Market Valuations and Historical Insights
- Current Market Valuation: The Shiller P/E CAPE ratio is currently above historical averages, indicating high market valuations; however, this does not imply an imminent crash, as historically, overvalued markets can remain elevated for years.
- Tech Stock Concentration: A small number of tech companies like Nvidia, Microsoft, and Apple account for a significant portion of the S&P 500's market value, and weakness in these stocks can significantly impact the broader market, and vice versa.
- Historical Lessons: Market corrections are a normal part of investing, with an average 10% decline occurring annually and 20% drops every four to five years, although the exact timing of future crashes remains unpredictable.
- Investment Strategy Advice: Maintaining a diversified portfolio and focusing on fundamentals has proven to be a more reliable strategy than attempting to predict market crash timing, as history shows that disciplined investing often yields better returns.
See More
Market Turmoil in AI Stocks and Investment Strategy Adjustments
- Market Turmoil: Recent negative headlines have led to a decline of over 10% in shares of AI stocks like Alphabet, Amazon, and Tesla, indicating a growing skepticism about the vulnerability of highly valued tech stocks, which may trigger broader market adjustments.
- Portfolio Rebalancing: Investors are reminded to reassess their portfolios amid market volatility, particularly those heavily weighted in high-risk tech stocks, as they may need to consider reducing exposure to mitigate risks, even though current exit prices are significantly lower than previous highs.
- Economic Cycle Shift: With rising inflation and interest rates, the market may transition from a tech-led bull market to one dominated by value stocks, suggesting new growth opportunities in sectors like energy, healthcare, and consumer staples, which investors should remain vigilant about.
- Importance of Diversification: The article emphasizes the necessity of diversifying investments in uncertain market conditions to hedge against potential risks, recommending holding at least 50 stocks to spread risk and avoid significant losses from fluctuations in a single sector.
See More
Market Valuation and Risk Analysis
- Current Market Valuation: The CAPE ratio of the S&P 500 is currently at historical highs, which typically correlates with lower long-term returns; however, history shows that expensive markets can remain elevated for years without an imminent crash.
- Market Concentration Issue: A small group of tech companies, including Nvidia, Microsoft, and Apple, now represents a significant portion of the S&P 500's market value, increasing market dependency on these stocks, which could lead to substantial impacts on the broader market if investor sentiment shifts.
- Historical Lessons: Historical data indicates that the stock market loses an average of 10% of its value annually, with 20% declines occurring every four to five years; however, the exact timing of the next major downturn remains unpredictable, necessitating vigilance among investors.
- Investment Strategy Recommendations: Historical experience suggests that maintaining a diversified portfolio and focusing on business fundamentals is more reliable than attempting to predict the exact timing of market crashes, as disciplined investing often yields better returns.
See More
Tech Stock Adjustments and Investment Strategies
- Market Volatility Impact: Recent declines in tech stocks like Alphabet and Amazon, which have dropped over 10%, indicate growing skepticism about the resilience of AI stocks, potentially prompting investors to reassess their risk exposure and impacting overall market sentiment.
- Portfolio Adjustment Recommendations: In the current market climate, investors are advised to consider reducing their holdings in high-risk tech stocks, particularly those that have inflated due to the AI hype, highlighting the importance of diversifying investments ahead of time to mitigate future losses.
- Long-term Investment Strategy: While tech stocks face short-term pressure, investors may need to rethink their investment strategies in the long run, as sectors like energy and healthcare could emerge as new investment hotspots amid rising inflation and interest rates.
- Risk Management and Diversification: Investors are encouraged to remain sensitive to risks while adjusting their portfolios, gradually increasing investments in more stable stocks to navigate market uncertainties and ensure the health and sustainability of their investment portfolios.
See More
