To The Moon

[Miser]Hello Tigers,

Today we are looking at the shares of utilities and electricity providers that have shone on the market.

Look at how they have risen recently: $Vistra Energy Corp.(VST)$ & $Constellation Energy Corp(CEG)$ share prices rose by over 134% and 80% respectively in 2024, breaking new highs all the way.

1.What are the reasons?

The demand for electricity in AI data centers is rising sharply, which will significantly increase investment in renewable energy, electricity, and nuclear energy industries, benefiting stock prices.

Goldman Sachs predicts that by 2030, the AI Wave will drive about $50 billion in electricity investment in the US. The electricity demand in data centers is expected to grow at a 15% compound annual growth rate from 2023 to 2030. To meet this demand, an additional 47 gigawatts of power generation capacity will be needed by 2030, with 60% from natural gas and 40% from renewable energy.

This surge in demand will create downstream investment opportunities in utilities, renewable energy generation, and the industrial sector.

2.What specific energy or Utilities companies are benefiting the AI Wave?

• $Vistra Energy Corp.(VST)$ has risen by over 130% since the beginning of the year. It is one of the largest electricity producers and retail energy suppliers in the United States, with 41 gigawatts of nuclear, coal, natural gas, and solar power generation, as well as one of the world's largest utility-scale battery projects.

• Nuclear energy is also set to become a more important source of energy. $Constellation Energy Corp(CEG)$ , the largest owner of nuclear power plants in the United States, has recently entered into a partnership with Microsoft, and its stock has soared by 145% over the past year.

• Although not an energy company, $Brookfield Corp(BN)$ has seen a nearly 20% cumulative increase in recent week. Due to an agreement with $Microsoft(MSFT)$ , it plans to jointly develop approximately 10.5 gigawatts of new renewable energy generation projects between 2026 and 2030. The scale of this deal is nearly 8 times that of the largest renewable energy contract signed to date.

3.Any more companies will benefit from AI?

Miller and Morningstar strategist Andrew Bischof specifically recommend 4 stocks that are most likely to benefit from the growth of the AI ​​wave:

• $Entergy(ETR)$ customers make up about half of Entergy's customer base. The company is investing nearly $7 billion per year over the next five years to upgrade its grid and expand its clean energy portfolio.

• $Southern(SO)$ is in the middle of a massive clean energy transition. Its $43 billion of capital over the next five years will be invested to reduce greenhouse gas emissions, expand renewable energy, and strengthen the natural gas system.

• $Pinnacle West Capital(PNW)$ has been earning solid returns with a dividend yield of 4.1% and has grown its customer and energy use in Arizona more than most other utilities in the past two years.

• $WEC Energy Group Inc(WEC)$ is the largest Midwest utility, with approximately $29 billion of rate base. It is expecting the company to invest $23.7 billion of capital through 2028, which includes its investment in American Transmission.

Andrew believes that $Entergy(ETR)$ , $Pinnacle West Capital(PNW)$ , and $WEC Energy Group Inc(WEC)$ are undervalued, while $Southern(SO)$ is considered fairly valued.

Disclaimer：Past performance is not future proof. This content is for educational use and does not replace professional financial advice. Consult an advisor before making investment decisions.

4.🎁Question For you：

• Looking at the historical or YTD return data, which stock do you like best?

• Bisides the above stocks, what other energy stocks (especially solar and renewable energy) do you think will continue to benefit from the AI ​​Wave?

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