We recently published a list of 12 Best Energy Stocks to Invest in According to Billionaires. In this article, we are going to take a look at where Chevron Corporation (NYSE:CVX) stands against other best energy stocks to invest in according to billionaires.
After significantly lagging behind in 2024, the broader energy sector finally seems to be doing better now with gains of 6.21% since the beginning of 2025, against a decline of 3.42% by the wider market during the period.
READ ALSO: 12 Best Nuclear Power Stocks To Buy Now
The ongoing artificial intelligence boom is a significant growth driver for the energy industry, as its accompanying data centers consume 10 to 50 times the amount of energy per square foot of a typical commercial office building. According to the Department of Energy, the energy use by America’s data centers could reach between 74 and 132 gigawatts by 2028, or 6.7% to 12% of the total electricity consumption in the country. A large number of power companies are already ramping up their capacity to meet this growing power demand. It is forecasted that US electricity demand will grow 55% over the next 20 years, six times faster than the 9% growth witnessed over the past two decades.
According to energy data provider Enverus, a total of 80 new gas power plants could be constructed in America by the end of the decade to meet this growing demand. However, the price of natural gas has surged by over 140% over the last year and the costs for gas power plants have also soared in the last 18 months. If the US concentrates only on gas, it will become even more expensive, forcing up bills for consumers and businesses.
Nuclear energy has also received a massive boost in recent years, largely driven by its widespread recognition of its role in the global ‘clean energy transition’. The International Energy Agency recently revealed that nuclear is set to generate a record level of electricity this year. There are more than 70 gigawatts of new nuclear capacity under construction around the world, one of the highest levels in the last 30 years. Moreover, on the sidelines of the CERAWeek conference earlier this month, several major corporations have signed a pledge to support the goal of at least tripling the world’s nuclear energy capacity by 2050.
Despite the best efforts by the incumbent Trump administration to hamper its progress, the clean-energy industry is on pace for record growth this year. According to the US Energy Information Administration, the share of new power capacity that is expected to come online this year from renewables and batteries will jump to 93%.
The promising future prospects of the energy industry can also be reaffirmed by the growing interest of billionaire investors, who have significantly raised their stakes in the sector. Even Warren Buffett’s Berkshire Hathaway acquired an additional 763,017 shares of an oil and gas giant in Q4 2024, despite the ongoing issues faced by the industry. But while Buffett’s portfolio leans heavily on oil and gas, Berkshire Hathaway Energy operates one of the largest renewable energy portfolios in the US and has invested over $40 billion in wind, solar, and hydroelectric projects.
With that said, here are the Billionaires’ Favorite Energy Stocks to Buy Now.
An aerial view of an oil rig at sea, the sun glinting off its structure.
Methodology:
To collect data for this article, we scanned Insider Monkey’s database of billionaires’ stock holdings and picked the top 12 companies operating in the energy sector with the highest number of billionaire investors in Q4 of 2024. When two or more companies had the same number of billionaires backing them, we ranked them by the revenue of their last financial year. Following are the Best Energy Stocks According to Billionaires.
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).
Chevron Corporation (NYSE:CVX)
Number of Billionaire Holders: 14
Chevron Corporation (NYSE:CVX) is the second-largest integrated energy company headquartered in the United States. Through its subsidiaries and affiliates, the company produces crude oil, natural gas, and many other essential products.
Chevron Corporation (NYSE:CVX)’s Q4 2024 EPS of $2.06 per share narrowly missed expectations as weak margins dragged its refining business into a loss for the first time in the last four years. However, the energy giant managed to increase its revenue by 10.7% YoY to $52.23 billion and topped estimates, as it increased its worldwide and US production by 7% and 19% respectively to record levels last year. Chevron also maintains a strong balance sheet, ending the year with a net debt ratio of 10%. The company returned a record $27 billion in cash to its shareholders in 2024 and increased its quarterly dividend by 4.9% to $1.71 per share in January. CVX has been increasing its annual dividends for an impressive 38 years and is counted among the 25 Best Dividend Stocks to Buy According to Billionaires.
To make sure it doesn’t miss out on the ongoing AI boom, Chevron Corporation (NYSE:CVX) is targeting the development of data center sites and power plants that are around 1 GW in capacity and targeted to come online in the next two to three years.
Overall, CVX ranks 11th on our list of the best energy stocks to invest in according to billionaires. While we acknowledge the potential for CVX, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CVX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires
Disclosure: None. This article is originally published at Insider Monkey.
