As AI data centers expand, the need for reliable and scalable power sources is becoming a significant focus. Some of the major industries, including solar, natural gas, and battery storage, are expected to benefit from this transformation, with projections from experts showing that AI could significantly impact U.S. power consumption by 2030.
The Future of Energy in an AI-Powered World
At Bloomberg Invest 2025, Rob Barnett, Senior Energy Analyst at Bloomberg Intelligence, explored how solar, natural gas and battery storage could benefit from the $500 billion Stargate AI infrastructure proposal. He highlighted the growing energy demands of AI data centers, which could account for 8% to 19% of U.S. electricity consumption by 2030, depending on efficiency improvements in chips and algorithms. Barnett was initially skeptical of these projections, but his analysis ultimately confirmed that AI’s energy needs are significant and will be an important factor in shaping future power demand.
Other than AI, other factors driving electricity consumption include the resurgence of U.S. manufacturing, supported by the Inflation Reduction Act and CHIPS Act, and the continued adoption of electric vehicles. To meet this rising demand, solar power is expected to expand quickly due to its short construction timelines, which makes it an attractive option for AI-driven data centers that require quick deployment. However, because solar is intermittent, battery storage and natural gas will also play critical roles in balancing the grid. Barnett estimates that AI-related power demand alone could increase natural gas consumption by 3 to 10 billion cubic feet per day by 2030.
He added that nuclear energy has gained interest, with companies like Microsoft and Amazon securing agreements related to existing nuclear plants. However, large-scale new nuclear projects, including small modular reactors, are unlikely to contribute significantly before 2035. In the near term, the primary sources meeting the surge in electricity demand will be solar, battery storage, and natural gas, with wind energy playing a smaller role due to current policy and market dynamics.
For this article, we selected AI stocks by reviewing news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey’s Q4 database of over 1000 hedge funds.
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13. Gaxos.ai Inc. (NASDAQ:GXAI)
Number of Hedge Fund Holders: N/A
Gaxos.ai Inc. (NASDAQ:GXAI) develops AI applications for wellness, coaching, and gaming, including a platform that integrates traditional and unconventional game mechanics.
On March 5, Gaxos.ai announced that it acquired AI technology to improve its content creation services, expanding the capabilities of Gaxos Labs and supporting its AI development efforts. The acquisition introduces advanced features like text-to-speech, image generation, video assembly, narration, styling, and script automation. CEO Vadim Mats stated that the development strengthens Gaxos’ AI ecosystem and accelerates innovation in AI-powered content creation.
12. CISO Global Inc. (NASDAQ:CISO)
Number of Hedge Fund Holders: 1
CISO Global Inc. (NASDAQ:CISO) provides security management, consulting, and incident response services across multiple countries.
On March 5, CISO Global announced that it is continuing to drive AI-powered cybersecurity innovation by integrating its solutions with Microsoft Azure and AWS. The company developed a Proof of Concept for Microsoft Security Copilot, improving threat detection and asset management through automation and intelligence sharing with its Argo Secure platform.
Moreover, CISO’s TIGRIS GRC solution is now available on the AWS Marketplace, offering cloud security and compliance tools to help organizations assess vulnerabilities, validate security standards, and optimize system design. CEO David Jemmett emphasized the company’s focus on expanding its AI-driven security solutions within major cloud platforms.
11. ZenaTech, Inc. (NASDAQ:ZENA)
Number of Hedge Fund Holders: 4
ZenaTech, Inc. (NASDAQ:ZENA) develops cloud-based solutions for various industries and also manufactures and sells drones.
On March 4, ZenaTech announced that its Taiwan subsidiary, Spider Vision Sensors, is expanding partnerships across East Asia to serve the growing government defense and commercial drone markets. The company is also working with local manufacturers to ensure U.S. military compliance in producing sensors, cameras, and parts for its AI-powered ZenaDrone 1000 and IQ series drones. To support these efforts, ZenaTech has hired two business development managers and plans to recruit up to five engineers for its Taiwan office in the coming month. CEO Shaun Passley commented:
“The East Asian drone market, particularly Taiwan, Japan and South Korea, is rapidly growing for military defense and commercial needs. Expanding our Asian customer sales footprint was always part of our plan. Non-Chinese Asian component partnerships are of strategic importance for the creation of our US Defense-compliant cameras, sensors and parts that will help bring our products to market faster.”
10. SK Telecom Co., Ltd. (NYSE:SKM)
Number of Hedge Fund Holders: 11
SK Telecom Co., Ltd. (NYSE:SKM) provides wireless, fixed-line, and digital services in South Korea, including telecommunications, media, and IoT solutions.
On March 4, SK Telecom announced its partnership with Giga Computing and SK Enmove to develop advanced liquid cooling solutions for AI data centers (AIDCs). The collaboration will focus on optimizing Direct Liquid Cooling, Immersion Liquid Cooling, and Precision Liquid Cooling while creating a liquid cooling package for GPU and NPU servers. Giga Computing will provide expertise in liquid cooling technology, while SK Enmove will supply specialized cooling fluids. SK Telecom aims to improve energy efficiency and reduce heat generation in data centers, strengthening its competitiveness in AIDC operations and supporting SK Group’s technological advancements.
9. Samsara Inc. (NYSE:IOT)
Number of Hedge Fund Holders: 40
Samsara Inc. (NYSE:IOT) provides cloud-based solutions that connect physical operations data through AI-driven IoT applications for safety, telematics, equipment monitoring, and site visibility across various industries.
On March 4, Samsara announced that FM Conway, an infrastructure services company, has improved safety across its fleet of over 1,000 vehicles by adopting Samsara’s AI-powered fleet management technology. With its workers handling complex projects in high-traffic areas, FM Conway integrated Samsara’s Connected Operations platform, including AI dash cams and Vehicle Gateways, to monitor driving behaviors and vehicle diagnostics in real time.
The initiative led to notable improvements, including reductions in speeding violations, traffic accidents, and vehicle defects, while also generating cost savings of £212,000. FM Conway’s logistics director highlighted the benefits of gaining real-time insights into driver performance and improving road safety. Samsara’s SVP and GM EMEA, Philip van der Wilt commented:
“FM Conway plays an important role in helping the nation’s infrastructure operate effectively and efficiently, and we’re proud to do our part in facilitating this crucial work. Building on a solid safety programme, Samsara has enabled FM Conway to create optimised workflows in the back office and ensure drivers on the road return home safely.”
8. Arm Holdings plc (NASDAQ:ARM)
Number of Hedge Fund Holders: 43
Arm Holdings plc (NASDAQ:ARM) designs, develops, and licenses CPU architectures, microprocessors, and related technologies for semiconductor firms and OEMs across different industries.
On March 5, Reuters reported that Malaysia will pay Arm Holdings $250 million over ten years for chip design plans to develop its own AI chips. The deal includes access to Arm’s intellectual property, the training of 10,000 engineers, and the establishment of an office in Kuala Lumpur. The government aims to create a domestic chip industry and build a supply chain for AI and advanced technologies.
7. Cloudflare, Inc. (NYSE:NET)
Number of Hedge Fund Holders: 55
Cloudflare, Inc. (NYSE:NET) provides cloud-based security, networking, and performance solutions for businesses across various industries.
On March 3, The Fly reported that Piper Sandler noted growing investor interest in Cloudflare’s upcoming analyst day on March 12. The firm expects a product announcement, updates on go-to-market changes led by President Desai and CRO Anderson, and a reaffirmation of the long-term operating framework. While the event may offer more insight into AI, sales strategy adjustments, and financial metrics, Piper Sandler does not see it as a major catalyst and maintained a Neutral rating on the stock.
6. Equinix, Inc. (NASDAQ:EQIX)
Number of Hedge Fund Holders: 56
Equinix, Inc. (NASDAQ:EQIX) provides digital infrastructure solutions, enabling organizations to interconnect and scale their operations efficiently.
At the Citi 2025 Global Property Conference on March 3, President and Chief Executive Officer at Equinix, Adaire Fox-Martin discussed how AI service providers are increasingly working with the company to connect with its large enterprise customer base and expand their networking capabilities. The collaboration creates potential go-to-market opportunities and strengthens Equinix’s role in the AI ecosystem.
While talking about DeepSeek’s advancements, Fox-Martin emphasized that such innovations help lower AI costs, making AI proof-of-concepts more accessible. While larger enterprises can invest in multiple AI projects, smaller companies often face financial constraints. Reduced costs could expand AI adoption across more businesses, benefiting both Equinix and its customers.
5. Dell Technologies Inc. (NYSE:DELL)
Number of Hedge Fund Holders: 63
Dell Technologies Inc. (NYSE:DELL) provides integrated IT solutions, including servers, storage, networking, cybersecurity, and computing devices for businesses.
On March 4, Loop Capital lowered Dell’s price target to $130 from $185 but maintained a Buy rating after its Q4 results. Revenue grew 7%, mainly driven by a 22% increase in the Infrastructure Solutions Group. AI remains one of the most important factors, with $2.1 billion in AI server shipments, $1.7 billion in AI orders, and a $9 billion AI backlog. However, while growth drivers are in place, revenue projections are affected by delays in the expected PC refresh cycle.
4. McDonald’s Corporation (NYSE:MCD)
Number of Hedge Fund Holders: 67
McDonald’s Corporation (NYSE:MCD) operates and franchises restaurants worldwide, offering a variety of food and beverages, including burgers, chicken sandwiches, fries, desserts, and breakfast items.
McDonald’s is upgrading its technology with AI-driven tools, internet-connected kitchen equipment, and edge computing to improve customer and employee experiences, WSJ reported on March 5. The company is partnering with Google Cloud and is using edge computing to improve order accuracy, predict equipment failures, and support AI-powered drive-throughs.
Sensors on kitchen equipment will provide real-time data to optimize restaurant operations, while AI tools will assist managers with administrative tasks. The company is also exploring computer vision for order verification and AI-driven personalized promotions, the report stated. Despite challenges in implementation and cost, McDonald’s sees these investments as a way to strengthen customer loyalty and streamline operations.
3. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 79
QUALCOMM Incorporated (NASDAQ:QCOM) develops and commercializes wireless technologies, providing chips, licensing, and investments across mobile, automotive, IoT, and AI industries.
Qualcomm CEO Cristiano Amon stated that the company’s newly announced X85 modem significantly outperforms Apple’s first in-house modem, the C1, which debuted in the iPhone 16e, CNBC reported on March 5. He highlighted X85’s AI capabilities, which improve signal performance and create a noticeable gap between premium Android devices and iPhones. While Apple is reportedly developing modems for its high-end models, Amon reaffirmed that Qualcomm expects to stop supplying Apple with modems by 2027. He also emphasized the growing importance of modems in AI-driven technology and their impact on consumer preferences.
2. Eaton Corporation plc (NYSE:ETN)
Number of Hedge Fund Holders: 88
Eaton Corporation plc (NYSE:ETN) is a global power management company providing electrical, aerospace, vehicle, and eMobility solutions across multiple industries. On March 5, Wells Fargo’s analyst Joseph O’Dea reduced Eaton’s price target from $335 to $305 but maintained an Equal Weight rating. The firm expects a positive five-year growth outlook to be shared next week and does not predict any bad news. However, maintaining strong demand and profit margins is important, and separating Eaton’s stock performance from AI-related market trends may be difficult.
1. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 186
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a global semiconductor company specializing in manufacturing, packaging, and testing integrated circuits for various industries.
On March 4, TipRanks reported that TD Cowen’s Krish Sankar maintained a Hold rating on TSMC with a $215 price target. The rating considers TSMC’s $100 billion investment in U.S. semiconductor production, which is viewed as a relatively low-risk move. While the expansion supports U.S. semiconductor goals, uncertainty around the timeline adds unpredictability. Capital spending is expected to stay manageable due to long-term growth and potential cost offsets in Taiwan. Positive yields from TSMC’s first Arizona fab suggest smooth progress, but concerns over equipment installation and funding sources like the CHIPS Act contribute to the cautious outlook.
While we acknowledge the potential of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than TSM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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