30 Most Important AI Stocks According to BlackRock

16. Vistra Corp. (NYSE:VST)

Number of Hedge Fund Holders: 92  

Vistra Corp. (NYSE:VST) operates as an integrated retail electricity and power generation company. The energy consumption of data centers is projected to rise from 3% to around 10% of the total power grid in the coming years. Nuclear energy, a key asset of Vistra, is expected to benefit significantly as tech companies seek cleaner energy alternatives to fossil fuels for their AI-driven transformations. Jim Burke, the CEO of the company, mentioned during the first-quarter earnings call that in addition to the 35 gigawatts of extra power demand expected by 2030 from data center activities, several other factors were driving growth for the company. These included the ongoing reshoring of industrial production, highlighted by large chip manufacturing projects, increased electrification across industrial, commercial, and residential sectors, and robust population growth.

Vistra Corp. (NYSE:VST) is viewed with a bullish manner on Wall Street. Morgan Stanley recently raised the price target on the stock to $110 from $109 and kept an Overweight rating, highlighting that in July, utilities had outperformed the 1.22% return of the S&P by 560 bps, and the strong and stable free cash flow of Vistra was underappreciated at the current price.