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Featured Story from MarketBeat.com
3 Energy Stocks to Buy as AI Power Demand Surges—and 2 to AvoidReported by Bridget Bennett. Article Published: 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: Elon Musk’s $1 Quadrillion AI IPO
The biggest names in energy and technology are together this week—and the conversation isn’t about oil prices. It’s about electricity. That difference matters. Often dubbed the "Super Bowl of energy," CERAWeek is the world’s premier annual energy conference, where industry leaders convene in Houston to discuss global markets, geopolitics, and technology.
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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 one 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, U.S. electricity usage barely moved even as GDP grew. That changed 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 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 does not yet exist. That's the tension at CERAWeek this year. 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 sensitive heading into November's elections. Companies that need power may increasingly be forced to source it at market prices or off-grid entirely, which would further 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. What makes MasTec compelling is what standard financial reporting misses. Altimetry estimates MasTec is roughly twice as profitable as reported metrics suggest. The company carries an approximately $19 billion backlog, giving it years of revenue visibility. Management guided for $17 billion in 2026 revenue, representing 19% growth, and adjusted earnings per share (EPS) of $8.40. The record $18.96 billion 18-month backlog supports that guidance. The market, however, appears to be pricing MasTec for a normal economic cycle, not a multi-year infrastructure supercycle. That disconnect is the opportunity. Altimetry's research on "doubles that double again" found that, in the middle of a bull market, stocks that have already doubled have 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. This 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 coming into a data center so high-value chips from NVIDIA and Micron (NASDAQ: MU) don't fry. 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 by about a third as it shifted toward higher-margin solutions, but reported metrics lag that transformation. Recent stock volatility—driven partly by geopolitical jitters and recurring "AI spending is over" scares—may offer an attractive entry point. Altimetry emphasizes that the current AI investment cycle is not the dot-com bubble. In 1998–1999 capital flowed to companies with no revenue. Today, spending is coming from massively cash-rich hyperscalers with unmet demand. Microsoft's Satya Nadella has said 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 the essential near-term cog in the AI power story. The logic is straightforward: while nuclear and renewables matter over the long term, natural gas is the only viable baseload source that can be deployed at scale within the next five years. Solar doesn't generate at night. Wind is intermittent. Battery storage extends capacity for two to four hours—far short of overnight demand. If the U.S. needs to rapidly build new power plants 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 12 years of proven reserves if it ramps up. Its vertical integration makes it one of the country's lowest-cost gas producers at about $2 per MMBtu. Management guided for 2026 adjusted EBITDA of roughly $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 reinforces the case for U.S. energy exports, giving EQT upside on both fronts. Stock volatility reflects short-term geopolitical skittishness, not a fundamental problem, and could represent a buying opportunity. 2 AI Power Plays That Look More Like Hype Than Opportunity1. CoreWeave: The WeWork of AI?Now for the names to avoid. The first is CoreWeave (NASDAQ: CRWV), and Altimetry's comparison is blunt: CoreWeave is the WeWork of the AI boom. The pitch sounds compelling on the surface: CoreWeave builds and operates data centers for AI workloads. But Altimetry argues the company is functionally a data center REIT with a slicker brand and has never generated real 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 return on assets north of 25%, roughly five times what comparable operators typically achieve. The company carries a $29.8 billion debt load, 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 finds that while headline metrics may suggest progress, the underlying economics tell a different story: CoreWeave's economic profit has been negative since going public, and Altimetry sees little reason for that to change soon. 2. Oklo: A Cool Idea Still Years Away From RealityAltimetry's critique isn't about nuclear energy broadly—it's about Oklo (NYSE: OKLO) specifically. The small modular reactor company captured investor imagination with a partnership with Meta and backing from Sam Altman, but it lags at least two competitors (NuScale (NYSE: SMR) and BWXT (NYSE: BWXT)) on the technology curve. More importantly, the business model is misunderstood: Oklo plans to build reactors and lease power, making it effectively a leasing business with cost-of-capital-level returns. New-build nuclear power costs roughly $200 to $250 per megawatt-hour, while hyperscalers are currently contracting power in the mid-hundreds. The math doesn't work at current pricing. The market, meanwhile, 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 cash cushion doesn't change the economics of a leasing model that may never reach the return profile investors are pricing in. If the SMR 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 all five 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. Companies 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 becoming the defining investment theme of this cycle, and the companies that physically build, power, and fuel that infrastructure may be the clearest way to play it. |
