10 Best Green Stocks To Buy According to Short Sellers

3. American Electric Power (NASDAQ:AEP)  

Short Interest as % of Shares Outstanding: 1.36%  

Number of Hedge Fund Investors in Q2 2024: 35  

American Electric Power (NASDAQ:AEP) is one of the largest electric utilities in the United States and operates an extensive network of power plants, transmission, and distribution lines to over 5 million customers across 11 states.

American Electric Power’s (NASDAQ:AEP) focus on green energy investments has positioned it as a significant player in the evolving energy landscape, particularly with the growing electricity demands driven by generative AI and data centers. The International Energy Agency (IEA) forecasts that the global electricity demand will increase by 4% in 2025, up from 2.5% in 2023. Tech companies such as Amazon, Microsoft, Google, and Meta are expected to collectively invest $150 billion annually in data center infrastructure. This surge in demand is anticipated to result in data centers accounting for nearly 30% of electricity growth. Blackstone estimates that investments in generative AI-related data centers could reach $2 trillion over the next five years.

American Electric Power (NASDAQ:AEP) is well-positioned to capitalize on this trend and plans to expand its green energy business at an annual growth rate of 15-20%. The company has increased its dividend by an average of 5.6% over the past five years and aims to achieve an 8% growth rate in the coming years. As of the second quarter, 35 hedge funds hold stakes in AEP, with a total investment of $1.57 billion. GQG Partners is the largest shareholder, with holdings valued at $840.74 million as of June 30. American Electric Power (NASDAQ:AEP) has a low short interest of 1.36%, indicating that investors are confident in the company’s future prospects.