AEP Stock Stalls as NVIDIA Backs $105 Billion Ohio AI Project

American Electric Power (NASDAQ:AEP), a regulated utility and electricity-transmission operator, traded nearly flat at $125.46 Monday morning as the artificial-intelligence infrastructure race expanded into the power sector. NVIDIA (NASDAQ:NVDA) agreed to backstop up to $105 billion of financing obligations tied to OpenAI’s Ohio data-center project and invest $1.5 billion in SB Energy, the SoftBank-backed developer behind the campus. The development reinforces the view that utilities could become important beneficiaries of AI infrastructure growth. AEP Ohio is positioned to supply electricity to the Pike County project, which could ultimately require 4.25 gigawatts of initial capacity, with expansion options beyond that level. AEP is also supporting a $4.2 billion transmission-upgrade program. SB Energy has committed to covering those infrastructure costs rather than shifting the burden to existing customers, reducing a potential concern for ratepayers and investors. The valuation case remains more balanced. AEP traded at $125.41 against its GF Value of $114.89, placing the shares approximately 9.16% above estimated intrinsic value. Investors are giving AEP credit for its role in supplying the AI expansion, but the earnings benefit remains a future event. Electricity is not expected to begin flowing to the site until 2029. Regulatory approvals, construction execution and demand growth will determine whether the project becomes a significant earnings catalyst or remains a long-term infrastructure commitment. The delay also leaves investors exposed to changing AI demand, project timing and cost risks before the expected power load translates into results. The broader investment case is that AI requires more than GPUs: It also needs power, transmission lines and utilities capable of delivering electricity at massive scale. AEP is positioned at the center of that opportunity, but the market’s premium valuation raises the standard for execution. GuruFocus has detected nine warning signs with AEP. Investors can also use its free DCF calculator to test whether the shares are fairly valued.