From an analytical perspective, Artificial intelligence (AI) may be the brains (or compute, rather) behind the next industrial revolution, but it's nothing without power (this bears monitoring).
Moreover, Here's a fun fact: Training OpenAI's GPT-4 required 30 megawatts of power, enough to power 15,000 to 30,000 households for one hour, given the current landscape.
As companies race to build data centers across the country, then, one question looms large: Who's going to keep the lights on, in light of current trends.
Nevertheless, That's where energy stocks come in. Not the fossil-fueled giants of decades past, but a new group of companies powering the AI infrastructure.
Additionally, If you've got $500 to invest and a long-term perspective, here are three no-brainer energy stocks worth considering right now. Nevertheless, Image source: Getty Images.
Constellation Energy When it comes to carbon-free electricity, no U. Energy company can top Constellation Energy (CEG -0.
As the largest ducer of clean power, Constellation operates over 20 nu plants and is responsible for 10% of the nation's emissions-free energy (noteworthy indeed).
These nu plants are more than bragging rights.
Reliable nu power is exactly what AI data centers crave: 24/7 output, negligible carbon foot, and the scale to serve hyperscalers (an important development), given the current landscape.
Beyond its nu power, Constellation is making a bold move to scale even further. It's acquiring Calpine in a $26, given the current landscape.
Conversely, 6 billion deal that will add a sprawling portfolio of natural gas and geothermal plants, exactly the kind of flexible generation needed to serve high-growth Texas and California.
On the other hand, Add to this a 20-year power purchase agreement with Microsoft, and you have yet another tailwind pushing Constellation deeper into the AI infrastructure supply chain, in light of current trends.
Financially, Constellation is sturdy. Additionally, This demonstrates that company generated $24. 2 billion in trailing-12-month revenue and $2.
98 billion in net income, giving it a higher fit margin (12 (noteworthy indeed). 3%) than most of its peers.
The stock trades at 34 times earnings -- higher than the other two companies below -- but that premium could reflect its nu foot, which will ly become more valuable as data center operators push for carbon-free power guarantees, in today's financial world.
NRG Energy NRG Energy (NRG 1. 15%) has been one of the S&P 500's top performing stocks in 2025 -- and for good reason.
In contrast, The company has posted strong revenue growth, expanded margins, and consistent fitability at a time when electricity usage is surging, in this volatile climate.
Not only has NRG Energy grown both its top and bottom lines (as the chart below shows), but it also doubled its hard asset base in the spring with the acquisition of several strategically located generation assets, in light of current trends.
The $12 billion deal puts NRG in a strong position to capture the wave of energy demand coming from AI data centers.
This's bably why management is predicting a 14% compound annual earnings-per- (EPS) growth rate over the next five years.
At the same time, NRG data by YCharts One risk (this bears monitoring), amid market uncertainty.
Its debt-to-equity ratio hovers near 396%, high even by utility standards (Constellation Energy's is 63%, for comparison).
Moreover, But with $693 million in cash and consistent cash flow, NRG has levers to manage it, in today's market environment.
Additionally, The stock trades around 20 times forward earnings, which is slightly above the utility sector average of 18 but potentially justifiable given the runway ahead. Vistra Vistra (VST 0.
90%) may not get as much press as the previous two companies. But its is just as strong, amid market uncertainty. The company operates one of the largest competitive power portfolios in the U.
-- enough to power 20 million s, according to its website -- with plants spread across multiple states, given current economic conditions.
Constellation, Vistra owns nu facilities, just on a smaller scale: four units in total, up from just one before its Energy Harbor acquisition last March.
Still, four nu facilities furnishes it with the second-largest energy storage capacity in the country, amid market uncertainty.
This's perfect for AI data centers, which require stable, 24/7 power, especially important when high demand causes major strains on the grid.
Valuation-wise, the stock trades around 31 times trailing earnings, which isn't exactly cheap but not unheard of in today's AI-adjacent energy landscape, as the chart below illustrates.
Additionally, On the other hand, That said, for an energy company with AI exposure and expansion momentum, that valuation could be more attractive than it seems at first glance, considering recent developments.
VST PE Ratio data by YCharts Of course, the previous companies, this one has risks, too. Nu and gas exposure both come with regularity risks, and the company carries a hefty $17. 7 billion in debt.
But for investors seeking a fitable energy company with strategic locations, Vistra checks a lot of boxes. Invest where the load is going Not every AI investment has to in Silicon Valley.
Nevertheless, AI will need electricity -- a whole lot of it -- which creates tailwinds for companies positioned to der it.
The analysis reveals se three companies are already there, considering recent developments. With just $500, you could plant a stake in the next energy boom.