8 Best Utilities Stocks to Ride the AI Boom in 2024

2. NextEra Energy Inc (NYSE:NEE)

Number of Hedge Fund Investors: 72

UBS recently published a list of stocks it believes it’s bullish on in the AI infrastructure space. NextEra Energy Inc (NYSE:NEE) is part of the list. UBS believes revenue in the AI industry would cross $400 billion over the next three years.  Earlier this year, NextEra Energy Inc (NYSE:NEE) CEO John Ketchum, while talking about power demand boost due to AI at CERAWeek by S&P Global conference, said:

“What you have today is electric demand that has been relatively flat for years now all of the sudden looking at an 81% increase.”

ClearBridge Value Equity Strategy stated the following regarding NextEra Energy, Inc. (NYSE:NEE) in its fourth quarter 2023 investor letter:

“We added a new position in NextEra Energy, Inc. (NYSE:NEE), in the utilities sector, which acquires, owns and manages contracted clean energy projects in the U.S. The company was at the center of the defensive stock storm when it slowed its renewable growth outlook modestly in late September, and the stock collapsed almost 30% in less than two weeks. We saw this as an opportunity to invest in arguably the best combination of a regulated utility and an experienced renewable operator with good long-term growth options. Even at a much-reduced estimated growth rate from higher financing costs, which will likely prove to be conservative, our estimate of intrinsic business value is materially higher.”