10 Most Promising Energy Stocks According to Hedge Funds

4. Vistra Corp. (NYSE:VST)

Number of Hedge Fund Holders: 92

Vistra Corp. (NYSE:VST) is a prominent energy company that offers electricity and power generation services. As one of the largest competitive power generators in the US, the company’s growth has been driven by advancements in artificial intelligence and increased interest from investors in dividend stocks.

Vistra Corp. (NYSE:VST) presents an attractive investment opportunity as a significant player in the AI sector. While semiconductors are commonly linked to AI, the rising demand for energy-intensive data centers has sparked interest in more sustainable power sources. Nuclear energy stands out as a viable option, and Vistra Corp.’s (NYSE:VST) ownership of four nuclear reactors, acquired through its purchase of Energy Harbor, positions the company to benefit from this trend.

Vistra Corp. (NYSE:VST) has received an average rating of “Strong Buy” from analysts. In a recent episode of Mad Money, Jim Cramer also discussed the stock, expressing his belief that Vistra Corp. is likely to “go higher.” You can check out Jim Cramer’s Latest Stock Picks here.

Here’s what Fidelity Growth Strategies Fund said about Vistra Corp. (NYSE:VST) in its Q2 2024 investor letter:

“An overweight stake in utility company Vistra Corp. (NYSE:VST) (+24%) was the top individual relative contributor. In Q1, the Texas-based independent power producer completed its acquisition of Ohio-based nuclear fleet operator Energy Harbor. The new Vistra, with its expanded geographic footprint, is in strong position to gain from the buildout of AI-capable data centers, which require enormous amounts of power to run. It is expected that local grids in the U.S. will need to invest heavily over the coming years to improve their power infrastructure and meet growing demand. In the nearer term, firms may choose to contract with independent power producers, like Vistra, rather than rely on the local provider.”