¶ AI's Explosive Power Demand
Everyone's talking about AI software stocks, but the real winners are the companies keeping the lights on. AI data centers are sucking up more power than entire countries, and that demand is exploding. Today I'm going to break down seven energy stocks that are absolutely booming in the AI era, and one warning that could save you from getting burned. We're talking about the AI power crunch and a seven stock.
They're winning as a result right now. The key here is to understand that AI isn't just digital. It's very much physical as well. Data centers are on pace, a twenty five percent surge in total US electricity demand and a setup for the energy infrastructure super cycle. Couple charts I wanted to share with you just to start. We're going to get through a lot of charts here today. This is Chat GPT. user growth versus the internet and how many years it took
to get where they are. If you can see Chat GPT basically eight hundred million users already, it's in year two or three. Took the internet about thirteen years to get there. Chat GPT is running at seven times the speed of growth that the internet itself went through. And so what that does is it creates enormous demand for data centers and power. This is an unbelievable chart to me. Gold line General office construction.
black or blue line data center construction. We're gonna have more data center construction than actual office construction very soon. If you think where's the value that companies are seeing?
¶ 7 Energy Stocks Fueling AI
It's probably not in people. It's probably very much in compute. What are the stocks that are winning out of this? First, ticker symbol O K L O. This absolutely booming. This is kind of the Elon Musk of nuclear power. It's backed by Sam Altman, the leader of Chat GPT. Modular nuclear reactors that promise Scalable clean power. The stocks up a thousand percent bloom energy. Ticker symbol B E A These fuel cells already power Oracle's data centers. It's great technology, very risky price here.
New scale power. It's kind of the steady play. The only US licensed small modular reactor company. Not real flashy. The stock is doing well over the last year, but not like Bloom Energy. But gaining institutional traction as nuclear legitimacy returns. So that's power generation. Got a couple stocks in power infrastructure. The first is G E Vernova.
Spun off out of GE. It's up 90% year to date. It's a grid backbone play. It's essential to connecting new power generation to AI data centers, quietly turning industrial into exponential. PWR. Quanta services? Behind the scenes infrastructure builder is monetizing America's electric grid. Every new AI megawatt very likely passes through Qanta's hands. And you can see one of the steadiest up into the right charts. There's some good volatility, but really steady and up and to the right.
We've got all this power. being generated. We've got the grid. The other thing I think a lot of people are starting to think about is how this energy is stored. Because it's not just AI data centers that we're also talking about A lot of energy needs coming from humanoid robots, drones. Portable robotics, that energy needs to be stored for those devices to be very effective. And so a couple energy storage revolution plays that we're looking at. The first is ticker symbol GWH.
that is ESS Tech, iron based flow batteries that offers safer, scalable storage. And with shares up triple digits on a new deal, this one is really charging fast. You can see the huge spike here recently. The other storage play, solid power, ticker symbol, SLDP. Solid state supremacy play. They are partnered with BMW and Ford. This company's solid power could really redefine battery density and safety, which is the holy grail of energy storage innovation.
¶ Investment Caution and Future Trends
Okay, and now it's time for my word of caution. A little bit of a warning shot. These stocks have absolutely boomed. A lot of them are up. Hundred percent, two hundred percent, six hundred percent just this year. So you want to be careful on your entry. We talked yesterday about buying at new all time highs as a good thing. It's generally when the stock has just made an all-time high, not necessarily after it's moved up 500% from an all-time high. If you look at the alternate energy index.
Over time. This is a five year chart. You can see the green zones which we're in now, this is where things can get really wild and go parabolic quickly. and surge. Then the tendency is once we've hit the high for the entire industry to grind lower over a significant, fairly painful period of time.
So I just want to throw that in there because if you're chasing these stocks now, you have to understand the potential of pullback is very real. It could be elongated. But I do think that we're into a new era here. So in closing I just want to Reinforce that AI revolution isn't just code. It isn't just semiconductors. It's concrete, it's copper, it's uranium. There's a lot going on behind the scenes to make all of this work. We're in a boom right now.
And I see that continuing and I see the world shifting towards nuclear finally, which is fantastic. And I see power consumption continuing to grow for a very long time. Are these stocks ahead of themselves? Maybe. Is pullback imminent? I don't know. But I will tell you that there are going to be more and more winners.
out of the energy side of this. If you want to stay up to date, you need to go to likefolio.com to get our free daily newsletter. There's a QR code in the top left of the screen right now you can scan. Like folio.com, free daily newsletter. I think this entire mega trend of powering AI, powering digital mining, et cetera, continues to be exponential growth. Very exciting stuff and That's it from me today. I'm Andy Swan. Appreciate all of you.