15 AI News Investors Should Not Miss

5. Vistra Corp. (NYSE:VST)

Number of Hedge Fund Holders: 92

Previously known as Vistra Energy Corp, Vistra Corp. (NYSE:VST) is a Texas-based integrated retail electricity and power generation company. Vistra Corp. (NYSE:VST) is a prominent example of how technology and energy sectors have been integrating to benefit from the AI boom. The company is benefiting from the rising demand for electricity from data centers.

On Thursday, October 17, JP Morgan analyst Jeremy Tonet initiated Vistra’s stock with an “Overweight” rating, setting the price target to $178. The investment banking company considers Vistra holding the “catbird” seat amongst independent US power producers, along with two others.

“We see structural tailwinds, including manufacturing onshoring, broader electrification trends (transportation, heating and more), as well [as] data-center development underpinning a paradigm shift in power demand”.

-Tonet wrote in a note to clients.

Moreover, it is expected that power supply in competitive electricity markets will lag behind demand, allowing the three independent power producers to “to capture outsized margins for an extended period of time”. Tech companies will increasingly be demanding carbon-free power to drive their data centers, boosting nuclear powers and enabling owners to “command a substantial premium”. Since half of Vistra’s gas generation is in the Texas ERCOT guide, analysts say that it can help fill a potential 40 gigawatt supply gap in the Lone Star State by 2030.