The 'richest' S&P sector valuation due to AI? It might be industrials

• Industrials are benefiting from the infrastructure build-out required for AI, including data centers and energy grids.
• Valuations for industrials are currently high, comparable to the tech sector, reflecting strong performance.
• Geopolitics and defense spending are also contributing tailwinds to the industrials sector.
• Strong ETF flows, particularly into actively managed industrial funds, underscore investor confidence in the sector's future.

The discussion highlights how the industrials sector is experiencing significant growth, driven by the infrastructure demands of AI data centers, geopolitical factors, and defense spending. Valuations for industrials are noted to be as high as tech, with strong ETF flows indicating investor interest in these long-term tailwinds.