We recently compiled a list of the 10 AI News Updates on Wall Street’s Radar. In this article, we are going to take a look at where TTM Technologies, Inc. (NASDAQ:TTMI) stands against the other AI stocks.
The rapid expansion of AI has started an unexpected growth in energy demand, which raises concerns about power availability, grid capacity, and sustainability. As tech giants invest in large-scale data centers, the need for reliable electricity sources is becoming a major challenge. Experts highlight the urgency of expanding power generation, upgrading infrastructure, and balancing AI growth with clean energy goals. Policymakers, industry leaders, and energy providers must navigate these challenges to ensure a stable and sustainable energy future.
The Energy Race to Sustain AI’s Expanding Power Consumption
In an interview at Bloomberg Technology, Joseph Majkut, director of Energy Security and Climate Change at the Center for Strategic and International Studies, discussed the growing energy demands driven by AI expansion. He noted that data centers require substantial electricity, making them among the largest new energy consumers in the U.S. over the next decade. Meeting this demand would require significantly increasing power generation, a challenge that involves coordination between local, state, and federal authorities.
Majkut highlighted the strain on the electricity grid, emphasizing that the U.S. must add more capacity in five years than it did over the past 20. He suggested that while the federal government could support this through funding and permitting reforms, state and local cooperation is essential since large-scale power plants are not readily available.
Furthermore, Majkut said more clarity is needed on the US administration’s approach. While President Trump has proposed easing permitting and using coal plants, Majkut expects most new power sources to come from solar, wind, batteries, and natural gas. He stressed the importance of long-term planning beyond 2030, including investments in nuclear power and modernizing the grid.
Majkut also doubted new coal plants would be built for AI-driven energy needs, as major tech firms prefer clean energy investments. He noted that these companies have the financial capacity to accelerate innovation, including small modular reactors. Although nuclear power could play a larger role by the early 2030s, he expects near-term energy additions to focus on solar, natural gas, and battery storage.
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 database of 900 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).
A close-up view of an electronic component being installed on a PCB.
TTM Technologies, Inc. (NASDAQ:TTMI)
Number of Hedge Fund Holders: 25
TTM Technologies, Inc. (NASDAQ:TTMI) designs and manufactures printed circuit boards (PCB), RF components, and mission systems for industries including aerospace, defense, automotive, medical, and data center computing.
On February 11, Stifel resumed coverage of TTM Technologies with a Buy rating and a $33 price target. The firm highlighted TTMI’s revenue diversification and focus on key customers and segments while reducing reliance on cyclical markets. Strategic acquisitions have shifted more than half of its aerospace and defense revenue toward engineered and integrated electronics. Meanwhile, PCB demand in the Data Center Computing segment grew 44% year-over-year, driven by AI-related applications. Stifel also sees TTMI’s new Malaysia facility as a long-term positive, as hyperscaler PCB production transitions from China to Penang.
Overall TTMI ranks 7th on our list of the AI stocks on Wall Street’s radar. While we acknowledge the potential of TTMI 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 TTMI 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 Complete List of 59 AI Companies Under $2 Billion in Market Cap.
Disclosure: None. This article is originally published at Insider Monkey.
