8 Best Utilities Stocks to Ride the AI Boom in 2024

3. NRG Energy Inc (NYSE:NRG)

Number of Hedge Fund Investors: 54

NRG Energy Inc (NYSE:NRG) is one of the biggest beneficiaries of the AI boom. NRG Energy Inc’s (NYSE:NRG) CEO Dr. Larry Coben talked about rising power demand and increasing activity in the industry because of AI during Q1 earnings call:

“For the first time in decades, and perhaps in my 40 years in this business, we are experiencing fundamental improvements driven by demand rather than commodity prices. We, along with every other forecasting expert I have read, are now expecting a step change in long-term power demand. This increase in demand is attributed to several factors, including electrification, manufacturing, onshoring, LNG, crypto, greater industrial loads and data center growth.

Recent advancements in GenAI are compounding and accelerating these factors, leading to the formation of the next power demand super cycle.”

Read the full earnings call transcript here.

During the first quarter, NRG Energy Inc’s (NYSE:NRG) GAAP EPS came in at $2.31. Revenue fell 3.8% year over year to $7.43 billion.  NRG Energy Inc (NYSE:NRG) saw a huge increase in hedge fund sentiment in the first quarter, perhaps due to its AI-related growth prospects. A total of 44 hedge funds tracked by Insider Monkey reported owning stakes in NRG Energy Inc (NYSE:NRG) as of the end of the March quarter, up from 31 funds in the previous quarter.