--- title: "AI \"power shortage\" ignites US power stocks, but the \"easy profit\" feast may have already ended" type: "News" locale: "en" url: "https://longbridge.com/en/news/270805238.md" description: "As investors chase companies that can meet the soaring electricity demand from artificial intelligence, the U.S. power sector has recorded strong gains this year. Winners are spread across various fields of the energy industry, including renewable energy and fossil fuels, established utility companies, and speculative startups. JP Morgan analysts believe that the rebound in renewable energy stocks is a \"catch-up trade.\" However, it remains uncertain whether this momentum can be sustained in the future" datetime: "2025-12-25T23:53:03.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/270805238.md) - [en](https://longbridge.com/en/news/270805238.md) - [zh-HK](https://longbridge.com/zh-HK/news/270805238.md) --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/270805238.md) | [繁體中文](https://longbridge.com/zh-HK/news/270805238.md) # AI "power shortage" ignites US power stocks, but the "easy profit" feast may have already ended According to the Zhitong Finance APP, as investors chase companies that can meet the soaring power demands of artificial intelligence, almost every segment of the U.S. power industry has recorded strong gains this year. The question now is whether this momentum has room to continue. Winners are spread across all aspects of the energy sector: renewable energy and fossil fuels, established utility companies and speculative startups, even equipment manufacturers providing hardware for the next generation of power generation. What connects them is a simple imbalance: a power supply long accustomed to slow growth and steady demand is struggling to keep up with the rapid expansion of data centers and artificial intelligence infrastructure. In the early surge driven by artificial intelligence, investors tended to invest in owners of nuclear power plants and natural gas power plants, including companies like Constellation Energy (CEG.US) and Vistra (VST.US). Since then, enthusiasm has spread throughout the power ecosystem. Renewable energy stocks provide an example. Earlier this year, the sector faced pressure as lawmakers debated cuts to clean energy subsidies under the Inflation Reduction Act. By summer, once the outlines of these changes became clearer, renewable energy stocks rebounded. JPMorgan analyst Mark Strauss described it as a "catch-up trade," amplified as investors reassessed the role of renewable energy in meeting AI-related power demands. Exchange-traded funds tracking clean energy and solar have surged significantly year-to-date. This round of gains has also extended to less traditional energy sources like geothermal. Ormat Technologies (ORA.US) has risen about 65% this year, thanks to discussions with data center operators about renewing power purchase agreements at higher prices after existing contracts expire. ## Nuclear Family Nuclear energy has also benefited significantly, partly due to the Trump administration's executive measures aimed at accelerating nuclear development. Uranium producer Cameco (CCJ.US) saw its stock price soar, and utility companies with a significant share of nuclear power also experienced price increases. Even speculative bets have garnered interest, with the stock price of small modular reactor developer Oklo (OKLO.US) rising by triple digits. This wave has spread to power equipment manufacturers. GE Vernova (GEV.US), which produces natural gas turbines, has seen its stock price roughly double as demand outstrips supply. This backlog of orders has also boosted companies producing smaller, faster-delivered equipment, including Caterpillar (CAT.US) and Cummins (CMI.US). Fuel cell manufacturer Bloom Energy (BE.US) has been one of the standout performers, with its stock price rising several times this year. Even coal, typically considered in its final decline, has joined this round of gains. Peabody Energy (BTU.US) has risen about 50%, and the U.S. Energy Information Administration expects that coal consumption in the U.S. will increase this year as electricity demand rises Nevertheless, the high expectations leave little room for error. The industry has largely reflected the optimism surrounding AI-driven demand, which means that further increases may require a continuous stream of positive developments, while disappointing news could quickly put pressure on valuations. ## Possible Shift in AI Sentiment J.P. Morgan's Strauss expects a shift in investor focus. He stated that by 2025, widespread participation in AI-related power demand would be sufficient to support stock prices. By 2026, the market may demand concrete evidence—signed contracts, project announcements, and an expanding backlog of orders. This scrutiny may make some companies uncomfortable. Companies most directly related to AI are already trading at premium valuations, with forward price-to-earnings ratios exceeding 30 times in some cases. Bloom Energy's valuation level is significantly higher. The valuations of equipment manufacturers riding the power wave are also well above their historical averages. The highest-risk areas may be those companies with little or no current revenue, including early-stage nuclear developers and ambitious infrastructure projects. One such company, Fermi (FRMI.US), disclosed this month that a potential data center client had withdrawn a $150 million construction funding commitment, leading to a sharp decline in its stock price. In contrast, renewable energy appears to be one of the few sectors that has not yet priced in aggressive growth. Despite a rebound this year, the valuation multiples of large clean energy companies have remained relatively stable, indicating that earnings expectations have not undergone substantial changes. Scarcity has driven the industry's rise thus far, but it may also create new bottlenecks. Wood Mackenzie analyst Joseph Schanlau stated that as workers are drawn to data centers and gas power plants, engineering and construction capacity is stretched thin, which could slow the progress of projects like solar energy. Such limitations may determine which companies ultimately emerge as winners. Analysts believe that, as most of the upside has already been reflected in stock prices, energy stocks may find it increasingly difficult to continue winning easily over the next year ### Related Stocks - [Peabody Energy Corporation (BTU.US)](https://longbridge.com/en/quote/BTU.US.md) - [TYN (000591.CN)](https://longbridge.com/en/quote/000591.CN.md) - [Bloom Energy Corporation (BE.US)](https://longbridge.com/en/quote/BE.US.md) ## Related News & Research - [Vocalbeats.AI Partners with NTU Singapore to Establish the Vocalbeats.AI-Turing AI Scholarship for Singaporeâs Next Generation of AI Talent](https://longbridge.com/en/news/281443280.md) - [U.S. Startup Emergence AI Opens Research Hub in Bengaluru](https://longbridge.com/en/news/281141211.md) - [The artificial intelligence (AI) stocks that worked in 2025 aren't working in 2026. 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