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2. Vistra Corp. (NYSE:VST)

Number of Hedge Fund Holders: 92

Vistra Corp. (NYSE:VST) is a Fortune 500 integrated retail electricity and power generation company. The stock is powered by the huge demand from AI data centers.

On November 6, Jefferies analyst Julien Dumoulin Smith maintained a “Buy” rating on Vistra Corp. (NYSE:VST) and raised the price target to $143.00 from $137.00. The buy rating comes despite the cautious regulatory environment stemming from a recent FERC decision. Talen Energy’s proposal to sell power directly to Amazon’s data center by the Federal Energy Regulatory Commission was rejected, leading to negative market reactions and implying challenges in future data center contracts.

Regardless, the company’s diversified asset base and its strong position in Texas (ERCOT) are acting as modest buffers. There is also an upside with potential data center contracts that are expected to boost capacity utilization. The stock’s value has also been positively revised largely owing to data center deals. Together, all of these factors highlight Vistra’s growth potential and financial stability, hence resulting in the buy rating.