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Featured Story from MarketBeat.com
3 Energy Stocks to Buy as AI Power Demand Surges—and 2 to AvoidBy Bridget Bennett. Publication Date: 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: The Biggest IPO Ever: Claim Your Stake Today
The biggest names in energy and technology are all 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 executives and policymakers convene in Houston to discuss global energy markets, geopolitics, and technology.
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This year, speakers from Amazon Web Services (NASDAQ: AMZN), Google (NASDAQ: GOOGL), Microsoft (NASDAQ: MSFT), NVIDIA (NASDAQ: NVDA), and Meta (NASDAQ: META) shared the stage with legacy energy producers, and the dominant theme was power demand. Altimetry Research’s Joel Litman and Rob Spivey highlight one major takeaway from the conference: the United States is not energy-independent when it comes to electricity, and an 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, U.S. electricity usage barely moved, even as GDP grew. That trend began to change around 2022. Even before the latest geopolitical concerns in the Middle East, power demand was already rising. Reindustrialization, the proliferation of data centers, and the surge in 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 that load 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 remain higher than commercial rates on a per-kilowatt-hour basis, a dynamic that could become politically sensitive ahead of November's elections. Companies that need reliable power may increasingly be forced to source it at market prices or go off-grid entirely, which would only accelerate overall 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 physically 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. What makes the case compelling is what standard financial reporting can miss. According to Altimetry, MasTec is roughly twice as profitable as reported metrics suggest. The company carries an approximately $19 billion backlog—a level that provides years of revenue visibility. Management guided for $17 billion in 2026 revenue, implying about 19% growth, and adjusted earnings per share (EPS) of $8.40. A record $18.96 billion 18-month backlog gives that guidance added credibility. The market, however, appears to be pricing MasTec for a normal economic cycle, not a potential multi-year infrastructure supercycle. That disconnect is the investment opportunity. Altimetry's research on "doubles that double again" found that, in the middle of a bull market, stocks that have already doubled carry roughly a 50% chance of doubling again; applying uniform accounting filters pushes 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, machine parts, and HVAC components—has moved up the value chain into data center power management, and the market hasn't fully caught on. 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 the electrical load entering a data center so high-value chips from NVIDIA and Micron (NASDAQ: MU) are protected. In Q4 2025, the company secured orders worth approximately $735 million for multiple E-Pod projects. Its 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 risen by 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 recurring "AI spending is over" headlines—may present a more attractive entry point. Altimetry emphasizes that this AI investment cycle differs significantly from the dot-com era. In the late 1990s, capital flowed to companies with little or no revenue. Today, spending is coming from massively cash-rich hyperscalers with unmet demand. Microsoft's Satya Nadella has said publicly that 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 describes it as 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 too calm or too turbulent. Battery storage extends capacity for two to four hours, which is far short of overnight demand. If the U.S. needs to rapidly add power capacity for data centers, many of those plants will run on natural gas. EQT holds nine years of reserves without drilling a single new well and about 12 years of proven reserves if production ramps up. The company's vertical integration helps make it one of the country's lowest-cost gas producers at roughly $2 per MMBtu. Management guided for 2026 adjusted EBITDA of about $6.5 billion and free cash flow of $3.5 billion. The company is also unhedged for 2026—a deliberate bet by management that natural gas prices will move higher. The dual catalysts are domestic power demand and LNG exports. Geopolitical disruption in the Middle East strengthens the case for U.S. energy exports, giving EQT upside on both fronts. Stock volatility reflects short-term geopolitical skittishness rather than a structural problem and could present a buying opportunity. 2 AI Power Plays That Look More Like Hype Than Opportunity1. CoreWeave: The WeWork of AI?Now for names to avoid. First up is CoreWeave (NASDAQ: CRWV), and 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 like a data-center REIT with a slicker brand and has never generated meaningful profitability. The company posted a negative 22.74% profit margin and a negative 50.27% return on equity. Yet the market is pricing CoreWeave for a return on assets north of 25%—roughly five times what comparable data-center operators typically achieve. The company carries about $29.8 billion in debt, has a 0.46 current ratio, and 16.5% short interest. Even as revenue surges, capital expenditures are expected to more than double in 2026, constraining any near-term path to profitability. Altimetry maintains that while headline metrics can be massaged to suggest eventual profits, the underlying economics tell a different story. CoreWeave's economic profit has been negative since it went public, and Altimetry doesn't see a reason for that to change soon. 2. Oklo: A Cool Idea Still Years 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, the business model may be misunderstood. Oklo doesn't plan to sell reactors; it plans to build them and lease the power, making it fundamentally a leasing business with returns tied to its cost of capital. The math doesn't work at current pricing. New-build nuclear power costs roughly $200 to $250 per megawatt-hour, while hyperscalers are contracting power in the mid-hundreds per megawatt-hour. The market is pricing 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 healthy 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 does play 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, it's massive, and it's 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. Companies 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. |
