5 Best Energy Infrastructure Stocks That Will Skyrocket
The energy infrastructure sector refers to the essential systems and networks that generate, transport, and distribute energy from sources to consumers. Whether commodity prices rise or fall, the energy infrastructure sector remains in focus as long as there is a growing demand for energy, which is likely to be the case.
The US power demand hit its second consecutive annual high last year, driven primarily by the rapid expansion of data centers and the rise of AI applications, cryptocurrency, domestic manufacturing growth, and the general electrification of different sectors. The trend is set to continue. On October 6, the US Energy Information Administration (EIA) stated in its Short-Term Energy Outlook that the country’s power demand is expected to rise from a record 4,195 billion kilowatt-hours (kWh) in 2025 to 4,288 billion kWh in 2026 and 4,356 billion kWh in 2027.
Utilities are among the biggest beneficiaries of this boom in power demand. Click HERE to see which utility stocks hedge funds are piling into the most.
Generating so much power requires as much fuel, and natural gas has emerged as a top candidate. As a result, the EIA is projecting the US natural gas supply and demand to both rise to record highs in 2026 and 2027. The ballooning American LNG sector is also contributing significantly to the natural gas demand, as the country’s operators look to tap new export markets amid the disruptions in the Middle East. This presents a significant opportunity for the midstream sector, as it plays a crucial role in transporting this gas from producers to power plants and liquefaction facilities.
ALSO READ: 10 Energy and Power Stocks Drawing Strong Reactions From Jim Cramer
Oil and gas stocks have been among the biggest gainers this year, thanks to the supply disruptions in the Middle East. Check out HERE which of these stocks hedge funds favor the most.
Midstream energy infrastructure companies earn a set fee for each barrel of oil or cubic feet of natural gas transported, stored, or processed regardless of the price of the fuel. Moreover, these operators generally sign long-term contracts, usually 5 to 20 years long, with their customers, resulting in stable cash flows. These stocks also tend to offer attractive dividend yields, making them especially appealing for income-focused investors.
That said, the investment opportunity extends beyond pipelines. The broader American energy infrastructure also includes companies operating storage terminals, processing facilities, LNG export terminals, electricity transmission networks, and other critical assets. The electrical infrastructure operators are in focus in particular, as the country’s utilities are expected to make $240 billion in capital expenditures this year to keep up with the soaring power demand.
Moreover, the opportunity is expected to sustain in the long run. According to estimates by Deloitte, the US power sector investments may need to reach $1.4 trillion between 2025 and 2030, with spending remaining high for the next two to three decades.
So, what are the most compelling opportunities in the energy infrastructure space? We published the expanded list of the 10 Best Energy Infrastructure Stocks to Buy here. You can find the top 5 stocks below.
Our Methodology
To collect data for this article, we looked up the best energy infrastructure stocks on a number of websites and then shortlisted the names that were mentioned the most times. We then arranged these stocks by the number of hedge funds invested in them at the end of Q2 2026 in the Insider Monkey database.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 612.3% since May 2014, beating its benchmark by 375 percentage points (see more details here).
5. Cheniere Energy, Inc. (NYSE:LNG)
Market Cap: $61.5 billion
Number of Hedge Fund Investors: 75
Cheniere Energy, Inc. (NYSE:LNG) is the leading LNG producer in the US and the second-largest producer globally. The company operates two LNG facilities along the Gulf Coast that export gas to foreign buyers under long-term, fixed-fee contracts, providing it with predictable cash flows.
The ongoing US-Iran war has choked around a fifth of the global LNG supply, and the disruptions could persist in the long run. The supply crunch has sent customers, especially those in Asia, scrambling to find alternatives and presenting a significant opportunity for exporters in the United States. The results are already showing, with Cheniere beating top- and bottom-line estimates in its Q3 report on October 29, and even raising its full-year earnings forecast. Its LNG revenue surged by 41.8% YoY to $6.1 billion during the quarter.
That said, Cheniere’s earnings can be heavily impacted by the Henry Hub natural gas prices, international LNG prices, and the spread between US gas prices and global LNG benchmarks. With global LNG operators aggressively expanding their production capacity, a potential global LNG supply glut also poses a significant threat. If the world’s LNG supply grows faster than demand, it could put serious pressure on international prices and regional spreads.
There is an LNG boom going on in the United States, with the country emerging as the top exporter of the super-chilled fuel in the world. Make sure you don’t miss out on the opportunity and check out our list of the 12 Best LNG Stocks to Buy in 2026.
4. The Williams Companies, Inc. (NYSE:WMB)
Market Cap: $91.6 billion
Number of Hedge Fund Investors: 79
The Williams Companies, Inc. (NYSE:WMB) owns and operates key interstate transmission pipelines, including Transco, the largest-volume interstate natural gas transmission system in the United States. Customers pay a fee on the volume of gas they transport, shielding the company from direct commodity price fluctuations and providing it with predictable cash flows.
Williams is also aiming to capitalize on the growing global appetite for American LNG. The company is investing in the Louisiana LNG project and building the related Driftwood Pipeline. Williams also completed the $5.5 billion acquisition of Momentum Midstream in September, expanding its integrated natural gas infrastructure platform in the Haynesville to serve growing Gulf Coast LNG, power, and industrial demand. These projects will help the midstream operator meet its target of +11% compound annual growth through 2030.
That said, Williams’ aggressive expansion strategy comes at a cost. The company carries almost $30.8 billion in debt and recorded a working capital deficit of $3.4 billion at the end of Q2 2026. The Momentum acquisition adds another significant investment commitment, potentially limiting the company’s financial flexibility.
Click HERE to check out our analysis on WMB’s economic moat and whether the stock is a good buy at its current valuation or not.
3. NextEra Energy, Inc. (NYSE:NEE)
Market Cap: $170 billion
Number of Hedge Fund Investors: 80
With a market cap of $170 billion, NextEra Energy is the largest electric utility in the United States. Given the rising electricity demand, the company has increased its adjusted earnings per share by 9.5% YoY through the first nine months of 2026, with a target for further earnings growth of 8% or more each year from now through 2032.
A major growth catalyst for NextEra is its plan to acquire Dominion Energy in a $66.8 billion deal, potentially creating the world’s largest regulated electric utility business by market capitalization. For NextEra, the deal will give it access to the largest data center cluster in the world in Northern Virginia, while Dominion will benefit from the former’s generation-development capabilities and large scale.
That said, the potential transaction has been faced with intense regulatory and political scrutiny since its announcement earlier in May. With a number of states pressing for commitments on electric bill affordability, job protections, and clean-energy investments, regulators are increasingly viewing the transaction from the perspective of consumer protection rather than corporate efficiency.
NextEra ranks 6th in our list of Gemini Latest Stock Portfolio: 7 Top Picks. Click HERE to see which stocks outranked it.
2. Quanta Services, Inc. (NYSE:PWR)
Market Cap: $94.3 billion
Number of Hedge Fund Investors: 100
Quanta Services, Inc. (NYSE:PWR) is an industry leader in providing specialized infrastructure solutions to the utility, power generation, load center, communications, pipeline, and energy industries.
Quanta has become a go-to for AI data center build-outs thanks to its work in power grid updates. As a result, its total backlog reached a record $63.7 billion at the end of Q3 2026, including $41.8 billion in remaining performance obligations. The massive figure gives investors visibility into contracted work as utilities expand electricity networks and customers pursue large infrastructure projects.
Quanta Services also topped both earnings and revenue estimates in its Q3 report on October 29, with revenue, adjusted EBITDA, and adjusted diluted EPS all achieving strong double-digit growth. Management also raised its full-year adjusted EBITDA guidance to the range of $17.90 and $18.30 and revenue guidance to between $41.3 billion and $41.6 billion.
That said, while the record backlog is encouraging, it also includes estimated orders under master service agreements and certain non-fixed price contracts. Additionally, the company must successfully convert that work into revenue and cash while managing execution costs.
Polen Capital, an investment management company, stated the following regarding Quanta Services in its “Polen Focus Growth Strategy” Q3 2026 investor letter:
“Additionally, we acquired a new position in Quanta Services, Inc., North America’s largest specialty infrastructure contractor, mostly focused on the electric power grid in North America. Quanta provides end -to -end services for electric utilities, renewables developers, hyperscalers , pipelines, and industrial customers. We view the company as a picks -and -shovels beneficiary of grid modernization, rising electricity demand, and the broader infrastructure buildout. Importantly, much of this work relates to essential infrastructure needs and multi -year projects, which can be constrained by permitting, supply chain, and skilled labor availability. We believe the company’s capabilities and positioning should support growth over time.”
Quanta Services, Inc. (NYSE:PWR) ranks 3rd on our list of the 10 Fastest-Growing Grid Construction Stocks to Buy Now. The top stock on that list grew its revenue by over 45% in the latest quarter.
1. GE Vernova Inc. (NYSE:GEV)
Market Cap: $236.5 billion
Number of Hedge Fund Investors: 106
GE Vernova Inc. (NYSE:GEV) is the world leader in natural gas and wind turbines. The company’s equipment helps generate approximately 25% of the world’s electricity.
Given the strong power demand, GEV’s orders surged by 96% YoY to $29.3 billion in the third quarter, with Power segment orders nearly tripling on demand for gas turbines and services, lifting its total backlog to $197 billion.
Notably, GE Vernova is translating this demand into financial improvement rather than simply a very large order book. The company reported stronger-than-expected results in its Q3 report on October 28 and raised its 2026 forecasts for both revenue and free cash flow. It also doubled its share buyback authorization to $20 billion, leaving $10.1 billion available for repurchases.
At the same time, GEV also announced the acquisition of high-voltage grid equipment maker Trench Group as the company moves to expand its grid business. The $9 billion deal also strengthens the firm’s footprint in Europe and Asia and brings a backlog of about $5 billion. The transaction is expected to close in late 2027.
That said, GEV’s Wind business has been a drag, hurt by the weak onshore demand and higher offshore project costs. The company expects the segment to report EBITDA losses of between $400 million and $500 million for 2026, though third-quarter EBITDA improved to $72 million from a year-earlier loss of $61 million.
Is Jim Cramer bullish on GEV? Check out HERE.
While we acknowledge the risk and potential of GEV as an investment, we believe certain AI infrastructure stocks offer far stronger long-term potential at a much more attractive entry point. If you are looking for an AI stock more promising than GEV that operates as a critical AI tollbooth and stands as the most important company in the world, check out our report about this must-own AI stock.
Click to continue reading and see the expanded list of the 10 Best Energy Infrastructure Stocks to Buy here.
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