3 Top Energy Stocks Set to Surge from Big Tech’s AI Spending Spree
Investing
-
Big Tech’s $380 billion AI capex boom is fueling demand for chips and energy infrastructure.
-
Chipmakers dominate as the primary beneficiary, but energy providers are critical for powering AI data centers.
-
The hidden winners below will capitalize on the energy demands of Big Tech’s AI ambitions, driving significant growth.
-
Nvidia made early investors rich, but there is a new class of ‘Next Nvidia Stocks’ that could be even better. Click here to learn more.
Powering the Future of AI
Big Tech’s relentless pursuit of artificial intelligence (AI) has unleashed a capital expenditure (capex) boom, with companies like Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), and Meta Platforms (NASDAQ:META) committing to spend hundreds of billions to build AI infrastructure.
According to recent analyses, these giants, alongside others like Google and Oracle (NASDAQ:ORCL), are projected to invest approximately $380 billion over the next year, primarily on data centers and AI chips to power cloud platforms and generative AI models.
Microsoft’s $30 billion quarterly spend, Amazon’s $120 billion annual commitment, and Meta’s $66 billion to $72 billion capex for 2025 underscore the scale of this transformation. Much of this investment will flow to chipmakers like Nvidia (NASDAQ:NVDA), the dominant player in AI-grade graphics processing units (GPUs). However, while Nvidia appears to be the big winner from the AI spending floodgates being opened, the following three stocks will be hidden winners from the spending spree because they are just as critical to Big Tech’s AI ambitions, as they will literally be powering their businesses.
GE Vernova (GEV)
GE Vernova (NYSE:GEV), spun off from General Electric in April 2024, is uniquely positioned to capitalize on the AI-driven energy demand surge. As a leader in power generation and electrification, GEV provides nuclear turbine technologies and services for over 80 nuclear reactor units in the Americas, alongside its GE Hitachi Nuclear Energy division, which develops advanced nuclear reactors and fuel solutions.
The AI boom requires vast energy to power data centers, and GEV’s expertise in nuclear, gas, and renewable energy infrastructure aligns perfectly with Big Tech’s needs. For instance, tech giants like Amazon and Microsoft are partnering with energy firms to secure reliable, clean power for AI workloads.
GEV’s stock has surged 400% since its IPO, outpacing the S&P 500, driven by its role in supporting AI infrastructure. With nuclear energy gaining traction as a sustainable power source, GEV’s technologies are critical for meeting the energy demands of AI-driven data centers.
Vistra (VST)
Vistra (NYSE:VST) is a leading integrated power company that has emerged as a powerhouse in the AI energy race. With its stock soaring 258% in 2024 — making it one of the S&P 500’s top performers — VST is up another 51% so far this year.
Vistra’s portfolio, spanning natural gas, nuclear, and renewable energy, positions it to meet the immediate and scalable power needs of AI data centers. Natural gas, in particular, is a critical stopgap for AI’s energy demands due to its reliability and availability, especially as tech giants like Microsoft expand their data center footprints.
Vistra’s strategic position is bolstered by favorable political support for natural gas development, enhancing its growth prospects. Analysts project 11% annualized earnings growth over the next five years, with a forward earnings multiple of 24x, reflecting its strong valuation. Vistra’s ability to provide consistent power to AI infrastructure ensures it will capture significant value from Big Tech’s spending spree.
Constellation Energy (CEG)
Constellation Energy (NYSE:CEG), the largest U.S. nuclear power operator, is a standout beneficiary of the AI-driven energy boom. Its 20-year power purchase agreement with Microsoft highlights its critical role in supplying clean, reliable energy for AI data centers.
CEG’s stock has surged 407% over three years, driven by its nuclear energy leadership and the recent acquisition of Calpine for $26.6 billion (set to close in the fourth quarter), expanding its natural gas and geothermal capabilities in tech-heavy regions like Texas and California.
Nuclear energy’s resurgence, backed by global commitments to triple capacity, positions CEG to meet the 24/7 power demands of AI infrastructure. Analysts forecast 8% earnings growth in 2025 and 18% in 2026, supported by the Nuclear Production Tax Credit.
As Big Tech seeks sustainable energy solutions, CEG’s nuclear and diversified portfolio ensures it will profit significantly from the AI capex surge.
If you’re one of the over 4 Million Americans retiring this year, pay attention. (sponsor)
Finding a financial advisor who puts your interest first can be the difference between a rich retirement and barely getting by, and today it’s easier than ever. SmartAsset’s free tool matches you with up to three fiduciary financial advisors that serve your area in minutes. Each advisor has been carefully vetted, and must act in your best interests. Start your search now.
Don’t waste another minute; get started right here and help your retirement dreams become a retirement reality. (sponsor)
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.