35 AI Superstars According to Goldman Sachs

12. Vistra Corp. (NYSE:VST)

Number of Hedge Fund Holders: 92  

Vistra Corp. (NYSE:VST) operates as an integrated retail electricity and power generation company. BMO Capital recently raised the price target on the stock to $146 from $125 and kept an Outperform rating on the shares. After hosting the management team of the power firm for discussions, the advisory released an investor note. The note detailed the strong fundamental outlook, noting the cyclical tightening in power supply/demand fundamentals and an associated improvement in pricing driven by economic development and data center demand due to a lack of sufficient dispatchable capacity and forward price well below new build economics. BMO also saw a robust set of opportunities for Vistra to expand its existing capacity and exposure to this accelerating demand outlook, with over 2GW of augmentation already identified, as well as over 150k acres of sites with transmission rights that could provide additional exposure.

Vistra Corp. (NYSE:VST) stock has been impacted by recent geopolitical events and the fears of an Israeli strike on Iranian oil and gas facilities. This has led to a big jump in the prices of oil and natural gas. This jump will translate into a price hike at power companies as well, specially those that have large natural gas portfolios. The hike will impact AI data center power plans for hyperscalers across the world, possibly increasing capex.