We recently compiled a list of the 15 AI Stocks That Are Dominating Headlines. In this article, we are going to take a look at where NRG Energy, Inc. (NYSE:NRG) stands against the other AI stocks that are dominating headlines.
The European Union recently released the initial draft for the general-purpose AI code of practice under the AI Act, its comprehensive framework aimed at regulating artificial intelligence. This section of the AI Act, which became law earlier this year, specifically addresses general-purpose AI model providers, setting out standards and practices they must follow to ensure responsible AI development and deployment. Some of the AI models that will be impacted by regulations drafted as discussions on this draft progress include GPT models by OpenAI and Claude by Anthropic, among others.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
Meanwhile, London-based AI startup Tessl recently raised more than $125 million in a funding round led by prominent venture capital firms like Index Ventures, Accel, GV, and Boldstart. According to a report by TechCrunch, this has pushed the valuation of the startup to more than $500 million. The startup is building an AI native platform that developers and their teams can use to create and maintain software. The firm is still developing the product and plans to launch it in the open market by sometime next year. The basic idea behind the business is to help write code to match specifications set by developers and their teams, in natural language or code.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
For this article, we selected AI stocks by combing through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. Why are we interested in 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Close up image of an engineer inspecting the control panel of a modern power plant.
NRG Energy, Inc. (NYSE:NRG)
Market Capitalization: $19 Billion
NRG Energy, Inc. (NYSE:NRG) operates as an energy and home services company in the United States and Canada. The firm is emerging as an important AI firm because it produces and sells electricity, vital for powering the AI needs of companies and consumers alike. On November 11, Wells Fargo raised the price target on the stock to $140 from $130 and kept an Overweight rating on the shares. The advisory cites a compelling 5-year update. The core services operations plus share buybacks point to a 10% EPS CAGR. Upside drivers tied to power margins and data center customers could be meaningfully additive, Wells adds.
Overall NRG ranks 12th on our list of the AI stocks that are dominating headlines. While we acknowledge the potential of NRG as an investment, our conviction lies in the belief that some 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 NRG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article is originally published at Insider Monkey.
