Without electricity, there is no intelligence. A ChatGPT query consumes about ten times more energy than a Google search. Data centers are the new "industry heavyweights," and NRG Energy (NRG) has maneuvered into a solid position here. For a long time, NRG was considered a classic, somewhat sluggish power generator. NRG has massively expanded its generation portfolio through the acquisition of LS Power assets. That was clever. While many focus solely on renewable energy, NRG scores with gas power plants. Why? AI data centers need "baseload" – that is, power that flows steadily 24/7, even when the sun isn't shining. NRG is currently building up to 5.4 GW of new gas capacity, which is directly reserved for data centers (together with partners like GE Vernova).

On Wednesday (March 18), the stock receives double analyst support: BNP Paribas has initiated coverage on the stock with an 'Outperform' rating and a price target of $232. That represents nearly 50% upside potential. Wolfe Research has upgraded the stock from 'Peer Perform' to 'Outperform' and set a price target of $190. Central arguments for the positive outlook according to Wolfe Research: NRG is strategically well-positioned to benefit from the massive energy hunger of AI data centers. The company has the potential to build new gas plants with a capacity of over 6 gigawatts.