The AI Trade Is Evolving – So Should Your IR Strategy

Source: Alpha IR analysis and S&P Capital IQ data through the end of March to avoid Liberation Day impacts.  

New foundations take time to solidify and IR/communications teams that were allowed to be reactive through this run, now need to think proactively. The question we’re receiving most often is, what should IR/communication professionals in these industries be doing to re-establish and build investor confidence in their stock’s story in today’s environment?

Six IR/Communications Moves to Make Now

As we head into a critical set of earnings seasons through the first half of 2025 and adjust our IR plans for the new realities of an ever-changing regulatory and macroeconomic environment, the Alpha team has outlined the following high-level steps for its clients that participated in and around the AI/Data Center trade over the last few quarters:

1) Reaffirm That Your Long-Term Investment Thesis Hasn’t Changed

• Make it crystal clear: demand for data centers and power infrastructure is not slowing. We’re still in the early innings of this transformation.
• Use sales pipeline data, internal trends, and third-party long-term forecasts to reinforce the enduring, multi-decade nature of AI-related investments.
• Emphasize long-term contracts with hyperscalers and infrastructure players that provide visibility into future revenue and margin stability.
• Remind investors that efficiency gains won’t shrink demand — they enable more growth by improving ROI and expanding use cases. Stress that AI efficiency improvements are still in early stages and do not negate the need for additional power generation, grid upgrades and other related equipment to meet rising demand.
• Reinforce recent stock price movements as short-term volatility, not a reflection of structural demand shifts.

2) Get Ahead of 1H’25 Earnings — This One Won’t Be Business as Usual

• Q1 is typically a “light” reporting period — not this year. Volatility and shifting sentiment require more thoughtful narrative planning for both Q1 and Q2 as the situation becomes more clear.
• Reinforce near-term revenue visibility through recent contract trends, customer commitments, and credible forecasts.  Further, consider adding your sales/marketing leaders to your call this quarter to talk anecdotally to recent customer conversations and trends.
• Address how the company remains agile in response to AI efficiency gains while maintaining growth and capital investment plans.
• If you’re in investment mode, clearly communicate your capital allocation strategy, cash flow trajectory, and highlight access to capital and path to self-fund growth.

3) Own the Narrative on Regulatory Uncertainty

• Policy confusion is high under the new administration, especially around permitting, energy expansion, and transmission, just to name a few areas.
• Don’t let the silence speak for you! As communications professionals, we have to offer as much perspective as we can despite the feeling of being in limbo on a variety of critical business issues.
• If regulatory policy is a key question for your industry, we recommend adapting language like: “Meeting AI’s energy demands must be done responsibly. We are working closely with regulators to ensure that policy aligns with the infrastructure required for a resilient energy future. [Then tie in messaging specifically to your industry’s key policy drivers].”

4) Double Down on Sustainability and Thematic Investor Engagement Angles

• Thematic funds tied to sustainability and energy transition continue to grow. Your message must align with these flows. As market sentiment returns, your message must align with these mandates to win the competition for investment capital.
• For example, we’ve seen institutional ownership in some of our cleantech clients jump from 60-75% to 90-95% in one year’s time driven almost entirely by purchases from actively-managed institutional investment that’s thematic in nature (e.g., Mutual funds with names like Global Energy Transition Fund or Global Sustainable Infrastructure Fund).
• Thus, you need to consistently highlight where you are actively engaging with key regulators to accelerate long-term macro and policymaking support for your industry.
• Reiterate that efficiency gains support — not replace — the need for sustainable infrastructure growth as new demand drivers (EVs, industrial growth) continue to emerge.
• Most importantly, ensure that your Sustainability and Corporate Responsibility materials and disclosures (formerly known as ESG) align with the evolving expectations of sustainability-focused funds.

5) Develop a Complementary PR Strategy to “Fill the Communication Gaps”

• Pair your IR messaging with a proactive, well-timed PR strategy to reach stakeholders in between earnings calls and other big events.
• Use thought leadership, executive commentary, and select media placements to reinforce long-term value, especially during market shifts.
• Social channels like LinkedIn are critical for amplifying stability, sustainability, and growth narratives and also need to be thoughtfully managed as a part of an overall communications program.
• Coordinate between IR and PR teams to maintain message discipline and ensure consistency across platforms and audiences.

6) Shift Your IR Program from Reactive to Proactive and Start Planning your Investor Day

• Large brand name investors entered the AI/Data Center trade in 2024 and many — even some lead steer investors — are now underwater on those investments.  Expect those influential investors to double down on “potential winners” in 2025 and sell “perceived losers.”
• Therefore, IR professionals need to reprioritize their investment engagement efforts and strengthen ties with long-term capital. This includes the prioritization of investors with strong buying potential, as well as proactive targeting of new investors that can round your shareholder base.
• As the cycle turns and portfolio metrics improve, IR teams need to utilize the opportunity to reset and communicate a new vision for growth, capital investment, and improved shareholder returns. The most logical event format for such communication is an Investor Day.
• Proper execution of an Investor Day can take 6-12 months to plan and ensure success. The backdrop of a less opaque political and regulatory environment will likely emerge in the second half of 2025, or worst case early 2026, and thus you need to start this process in the near-term.

The Bottom Line: Be Bold, Be Consistent, Be Early

As investor attention shifts and the AI/Data Center trade enters a more complex phase, IR teams can’t afford to stay reactive. Rebuilding credibility and reinforcing long-term value will require consistent messaging, smarter positioning, and a proactive communication strategy. It will also require a more proactive approach to how you engage with your current and prospective investors.

At Alpha, we are actively helping clients across the energy, infrastructure, equipment and tech spaces to reposition the narrative and thrive through this shift. If your team is ready to get ahead of the curve, let’s start the conversation. Contact us at Info@alpha-ir.com.