30 Most Important AI Stocks According to BlackRock

18. NRG Energy, Inc. (NYSE:NRG)

Number of Hedge Fund Holders: 56

NRG Energy, Inc. (NYSE:NRG) operates as an energy and home services company in the United States and Canada. The firm is emerging as an important AI firm because it produces and sells electricity, vital for powering the AI needs of companies and consumers alike. Electricity demand has witnessed an increase in North America for the first time in almost four decades. Larry Coben, the CEO of NRG Energy, Inc. (NYSE:NRG), underlined during the first quarter earnings call that electrification trends compounded by GenAI data center growth forecast a signal of transformative rises in power demand. Coben noted that this enabled the firm to remain on track to achieve a 15% to 20% free cash flow growth target.

NRG Energy, Inc. (NYSE:NRG) has invited bull calls from Wall Street in recent weeks. Wells Fargo recently raised the price target on the stock to $120 from $110 and kept an Overweight rating, noting that post Q2, the advisory caught up with CFO Bruce Chung and Treasurer Kevin Cole of the energy firm. In an investor note, the advisory stated that it sounded like the site opportunity was still in the early stages, and there were doubts that there would be any agreements struck in 2024, with colocation deals likely be front of meter, as on-site generation would probably require backup power from the grid.