UBS sees multiple positive factors for NRG Energy's rising stock prices – outside of the data center business. The upside potential is 27%.

The AI era will only progress if sufficient electricity is available. NRG Energy (NRG) is among the winners of this trend. The company is one of the largest electricity providers in the US with a strong presence in the core markets PJM (Mid-Atlantic and Midwest) and ERCOT (Texas), where high demand drives up prices. To ensure supply, NRG is continuing to expand its capacities. Recently, the company acquired a portfolio of 18 modern gas power plants (approximately 13 GW) from LS Power, as well as a C&I Virtual Power Plant platform (CPower) in a...