Jim Cramer’s Latest Lightning Round: 7 Stocks in Focus

1. Vistra Corp. (NYSE:VST)

Number of Hedge Fund Holders: 120

Cramer was asked about Vistra Corp. (NYSE:VST) during the lightning round and here’s what he said:

“Okay, if you believe that the data center is coming to end the world, why do we need more power? Why do we need more utilities? If you think it’s okay then I think at this point, I would actually pull the trigger on Vistra.”

Vistra (NYSE:VST) is a company that supplies electricity and generates power for a diverse group of customers, ranging from residential to commercial and industrial sectors. Meridian Hedged Equity Fund stated the following regarding Vistra Corp. (NYSE:VST) in its Q4 2024 investor letter:

“Vistra Corp. (NYSE:VST) is an integrated retail and power generation company with operations across the U.S., primarily serving Texas and the Midwest. We believe Vistra is well-positioned to capitalize on the structural tightening of power markets, as electricity demand accelerates, and baseload generation capacity continues to retire. This trend has been amplified by the rapid growth of AI, which is driving unprecedented demand for data centers and the power required to run them. These factors create a favorable pricing environment for Vistra’s generation fleet, especially its nuclear and gas assets. The company has locked in much of this value via hedging, providing clear visibility into future cash flows. Vistra has also successfully grown its retail business and completed a strategic acquisition of Energy Harbor, which added a portfolio of nuclear, retail, and renewable assets.”

While we acknowledge the potential of Vistra Corp. (NYSE:VST) 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 time frame. If you are looking for an AI stock that is more promising than VST but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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