We recently compiled a list of the 13 AI News and Ratings Gaining Investor Attention. In this article, we are going to take a look at where Cloudflare, Inc. (NYSE:NET) stands against the other AI stocks.
As AI data centers expand, the need for reliable and scalable power sources is becoming a significant focus. Some of the major industries, including solar, natural gas, and battery storage, are expected to benefit from this transformation, with projections from experts showing that AI could significantly impact U.S. power consumption by 2030.
The Future of Energy in an AI-Powered World
At Bloomberg Invest 2025, Rob Barnett, Senior Energy Analyst at Bloomberg Intelligence, explored how solar, natural gas and battery storage could benefit from the $500 billion Stargate AI infrastructure proposal. He highlighted the growing energy demands of AI data centers, which could account for 8% to 19% of U.S. electricity consumption by 2030, depending on efficiency improvements in chips and algorithms. Barnett was initially skeptical of these projections, but his analysis ultimately confirmed that AI’s energy needs are significant and will be an important factor in shaping future power demand.
Other than AI, other factors driving electricity consumption include the resurgence of U.S. manufacturing, supported by the Inflation Reduction Act and CHIPS Act, and the continued adoption of electric vehicles. To meet this rising demand, solar power is expected to expand quickly due to its short construction timelines, which makes it an attractive option for AI-driven data centers that require quick deployment. However, because solar is intermittent, battery storage and natural gas will also play critical roles in balancing the grid. Barnett estimates that AI-related power demand alone could increase natural gas consumption by 3 to 10 billion cubic feet per day by 2030.
He added that nuclear energy has gained interest, with companies like Microsoft and Amazon securing agreements related to existing nuclear plants. However, large-scale new nuclear projects, including small modular reactors, are unlikely to contribute significantly before 2035. In the near term, the primary sources meeting the surge in electricity demand will be solar, battery storage, and natural gas, with wind energy playing a smaller role due to current policy and market dynamics.
For this article, we selected AI stocks by reviewing news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey’s Q4 database of over 1000 hedge funds.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A technician in a server room managing a large-scale network of computers.
Cloudflare, Inc. (NYSE:NET)
Number of Hedge Fund Holders: 55
Cloudflare, Inc. (NYSE:NET) provides cloud-based security, networking, and performance solutions for businesses across various industries.
On March 3, The Fly reported that Piper Sandler noted growing investor interest in Cloudflare, Inc. (NYSE:NET)’s upcoming analyst day on March 12. The firm expects a product announcement, updates on go-to-market changes led by President Desai and CRO Anderson, and a reaffirmation of the long-term operating framework. While the event may offer more insight into AI, sales strategy adjustments, and financial metrics, Piper Sandler does not see it as a major catalyst and maintained a Neutral rating on the stock.
Overall NET ranks 7th on our list of the AI stocks that are gaining investor attention. While we acknowledge the potential of NET as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NET but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
