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Sunday's Exclusive News
3 Energy Stocks to Buy as AI Power Demand Surges—and 2 to AvoidSubmitted by Bridget Bennett. Date Posted: 4/5/2026. 
Key Points
- Mastec, Regal Rexnord, and EQT are positioned to benefit from a multi-year AI and energy infrastructure buildout that analysts say is only in its early innings
- Coreweave and Oklo face serious profitability concerns under uniform accounting analysis, with market expectations far exceeding what their business models can deliver
- Natural gas remains the most viable near-term power source for data centers, while small modular nuclear reactors are still five-plus years from commercial viability in the United States
- Special Report: Have $500? Invest in Elon’s AI Masterplan
The biggest names in energy and technology are in the same room this week—and the conversation isn't about oil prices. It's about electricity, and that distinction matters. Often dubbed the "Super Bowl of energy," CERAWeek is the world’s premier annual energy conference, where leaders gather in Houston to discuss global energy markets, geopolitics and technology.
The mainstream explanation for the Iran airstrikes may not be the full story. Addison Wiggin, Founder of Grey Swan Investment Fraternity, says there's a deeper motive behind the bombing campaign that most coverage is ignoring.
If you're making investment decisions based on what you're hearing in the news, Wiggin argues you could be working with an incomplete picture. Read Addison Wiggin's full breakdown of the real Iran story
This year, speakers from Amazon Web Services (NASDAQ: AMZN), Alphabet's Google (NASDAQ: GOOGL), Microsoft (NASDAQ: MSFT), NVIDIA (NASDAQ: NVDA), and Meta (NASDAQ: META) are sharing the stage with legacy energy producers, and the dominant theme is power demand. Altimetry Research’s Joel Litman and Rob Spivey highlight a major takeaway from the conference: the United States is not energy-independent when it comes to electricity, and the AI-driven buildout could take five to ten years. That creates a specific, investable opportunity—and a few traps worth avoiding. U.S. Electricity Demand Is Outpacing the GridFor roughly 15 years, electricity usage in the United States barely moved even as GDP grew. That began to change around 2022. Even before the latest geopolitical concerns in the Middle East, power demand was rising. Reindustrialization, the proliferation of data centers and the rise of AI computing have pushed consumption sharply higher. Data-center electricity demand alone could account for as much as 10% of total U.S. usage, and the infrastructure to support it largely doesn't exist yet. That's the tension at CERAWeek. Energy producers and AI hyperscalers are negotiating who builds what—and who pays for it. Residential electricity rates still exceed commercial rates on a per-kilowatt-hour basis, a dynamic that could become politically charged heading into November's elections. Companies that need large, reliable supplies of power may increasingly be forced to source it at market prices or go off-grid entirely, which would only accelerate total demand. 3 Stocks Positioned to Profit From the AI Power Buildout1. MasTec: The Builder Behind the BuildoutMasTec (NYSE: MTZ) is an engineering, procurement and construction firm that builds power plants, lays fiber-optic cable and constructs data centers. Its client list reads like a who's who of the energy-AI convergence: Kinder Morgan (NYSE: KMI), Duke Energy (NYSE: DUK), AT&T (NYSE: T), IBM (NYSE: IBM), and Microsoft. Altimetry finds that MasTec is roughly twice as profitable as standard reporting suggests. The company carries an approximately $19 billion backlog, giving it years of revenue visibility. Management guided for $17 billion in 2026 revenue (about 19% growth) and adjusted earnings per share of $8.40. The record $18.96 billion 18-month backlog lends that guidance credibility. The market, however, appears to be pricing MasTec for a normal economic cycle rather than a potential multi-year infrastructure supercycle. That disconnect presents an opportunity. Altimetry's "doubles that double again" research found that, in the middle of a bull market, stocks that have already doubled carry roughly a 50% chance of doubling again; uniform accounting filters push that probability closer to 60%. 2. Regal Rexnord: Solving the Power Problem Inside the Data CenterRegal Rexnord (NYSE: RRX) tells a different story. The legacy industrial company, historically known for motors and machine parts, has moved up the value chain into data-center power management, and the market hasn't fully recognized the shift. The key product is the E-Pod, a modular, plug-and-play power-management system roughly the size of a shipping container. It steps down and manages electrical load so high-value chips from NVIDIA and Micron (NASDAQ: MU) can operate reliably. In Q4 2025, the company secured orders worth approximately $735 million for multiple E-Pod projects. The broader data-center business could reach $1 billion in revenue over the next two years, up from roughly $120 million today. Regal Rexnord's return on assets has climbed about a third as it shifted toward higher-margin solutions, but reported metrics don't fully capture that transformation. Recent stock volatility—driven partly by geopolitical jitters and periodic "AI spending is over" headlines—may offer a more attractive entry point. Importantly, this AI investment cycle is not the dot-com bubble. In the late 1990s, capital flowed to companies with little or no revenue. Today, spending is coming from massively cash-rich hyperscalers with real, unmet demand. As Microsoft's Satya Nadella has noted, Azure would generate more revenue if the company simply had more power and more data centers. 3. EQT: The Natural Gas Bridge That Funds the FutureEQT (NYSE: EQT) is the largest natural gas exploration and production company in the U.S., and Altimetry calls it an essential near-term cog in the AI power story. The logic is straightforward: while nuclear and renewables offer long-term promise, natural gas is the only viable baseload source that can be deployed at scale within the next five years. Solar doesn't run at night, wind can't operate when conditions are calm or extreme, and battery storage currently extends capacity for only two to four hours—far short of overnight demand. Rapidly built plants to serve data centers will, in practice, run on natural gas. EQT holds about nine years of reserves at current production levels and about 12 years if it increases activity. Its vertical integration makes it one of the country's lowest-cost gas producers, with costs near $2 per MMBtu. Management guided 2026 adjusted EBITDA of roughly $6.5 billion and free cash flow of $3.5 billion. The company is also completely unhedged for 2026—a deliberate bet by management that natural gas prices will rise. The dual catalyst is domestic power demand and LNG exports. Geopolitical disruption in the Middle East reinforces the case for U.S. energy exports, offering EQT upside on multiple fronts. Stock volatility appears driven by short-term geopolitical skittishness rather than fundamental weakness, and could represent a buying opportunity. 2 AI Power Plays That Look More Like Hype Than Opportunity1. CoreWeave: The WeWork of AI?The first name to avoid is CoreWeave (NASDAQ: CRWV). Altimetry's comparison is blunt: CoreWeave looks like the WeWork of the AI boom. The pitch sounds compelling: CoreWeave builds and operates data centers for AI workloads. But Altimetry argues the company functions more like a data-center REIT with a slicker brand and has yet to generate meaningful profitability. The company posted a negative 22.74% profit margin and a negative 50.27% return on equity. The market, however, is pricing CoreWeave for return on assets north of 25%—roughly five times what comparable operators typically achieve. The company carries about $29.8 billion in liabilities, a 0.46 current ratio and 16.5% short interest. Even as revenue surges, capital expenditures are expected to more than double in 2026, which will constrain any near-term path to profitability. Altimetry finds that CoreWeave's economic profit has been negative since it went public, and sees little reason for that to change soon. 2. Oklo: A Cool Idea Still Years Away From RealityAltimetry's critique isn't of nuclear energy broadly—it's directed at Oklo (NYSE: OKLO) specifically. The small modular reactor company captured investor imagination with a partnership with Meta and backing from Sam Altman, but it trails at least two competitors (NuScale (NYSE: SMR) and BWXT (NYSE: BWXT)) on the technology curve. More importantly, Oklo's business model is misunderstood. The company doesn't plan to sell reactors; it plans to build and lease the power. That makes it a leasing business with returns tied closely to its cost of capital. The economics are challenging at current pricing. New-build nuclear power costs roughly $200 to $250 per megawatt-hour, while hyperscalers are currently contracting power in the mid-hundreds of dollars per megawatt-hour. Meanwhile, the market appears to price Oklo for $400 to $500 million in earnings when the company is currently losing about $100 million per year. Oklo has around $1.2 billion in cash and marketable securities, which provides runway, but a cash cushion doesn't change the economics of a leasing model that may never reach the return profile investors expect. If the small modular reactor thesis plays out, Altimetry suggests watching BWXT. The company already manufactures key components for the U.S. Navy's reactors, generates revenue today and carries less speculative premium. Where Power Meets ProfitThe through-line across these names is clear: the AI power buildout is real, massive and still early. But not every company riding the narrative deserves investor capital. Firms with proven demand, deep backlogs and underappreciated profitability—MasTec, Regal Rexnord and EQT—look positioned to capture years of growth. Those trading on hype and venture-capital packaging—CoreWeave and Oklo—could leave investors holding expensive lessons. The real signal from CERAWeek isn't any single stock: it's that the convergence of energy and AI is the defining investment theme of this cycle, and the companies that physically build, power and fuel that infrastructure may be the smartest way to play it. |
