The global energy landscape is undergoing a significant transformation as the demand for electricity escalates due to the rapid growth of artificial intelligence (AI) data centers. According to leading investment bank Goldman Sachs, AI is expected to drive a substantial 160% increase in data center power demand by 2030. This surge in demand will see data centers consuming 8% of the total U.S. electricity output by 2030, up from just 3% in 2022.
Additionally, the International Energy Agency (IEA) projects that global data center electricity consumption will exceed 1,000 TWh by 2026, a considerable rise from the 460 TWh consumed by data centers in 2022.
This growing need for energy presents a lucrative opportunity for energy stocks such as Vistra Corp. (VST) and Targa Resources (TRGP). These companies have been outperforming the market and are poised for further growth as the demand for electricity continues to surge.
Vistra Corp., with a market cap of $33.4 billion, is an integrated retail electricity and power generation firm based in Texas. The company operates a diverse energy mix of natural gas, nuclear, coal, solar, and battery storage facilities with a generation capacity of 37,000 megawatts. Vistra’s stock has soared 168.9% year-to-date, significantly surpassing the S&P 500 Index. The company recently announced a quarterly dividend increase and is committed to rewarding shareholders through share repurchases.
Targa Resources, valued at $25.2 billion, is a key provider of midstream services in North America, essential for the safe and efficient delivery of energy. The company has seen its shares rise by nearly 31.9% this year and increased its quarterly dividend by 50%. Targa’s earnings results have been strong, with plans for new infrastructure projects to further boost production and growth.
Both Vistra Corp. and Targa Resources are well-positioned to capitalize on the growing energy demand driven by AI data centers. Analysts are optimistic about their future prospects, with impressive growth projections and ratings of “Strong Buy” across the board.
Investors are keeping a close eye on these energy stocks as they stand to benefit from the evolving global energy landscape and the increasing need for electricity to power the AI-driven data centers of the future. As the demand for energy continues to rise, companies like Vistra Corp. and Targa Resources are poised for continued success in the ever-changing energy sector.
Two breakout energy stocks with more room to run – TradingView News
As the demand for sustainable and renewable energy sources continues to grow, energy stocks have been gaining momentum in the market. In particular, two energy stocks have recently broken out and have the potential for further upside.
The first stock is ABC Energy, which has been steadily climbing higher over the past few months. The company has a strong focus on renewable energy sources, including solar and wind power. With a solid growth trajectory and a strong balance sheet, ABC Energy is well-positioned for future success.
The second stock is XYZ Power, which has also been on a steady upward trajectory. XYZ Power specializes in data center power solutions, which are becoming increasingly important as more businesses move their operations online. With a strong customer base and a focus on innovation, XYZ Power is poised for continued growth in the energy sector.
Overall, both ABC Energy and XYZ Power are strong contenders in the energy sector and have the potential for significant upside in the coming months. Investors looking to capitalize on the growing demand for sustainable energy sources should keep an eye on these two breakout stocks.