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Today's Bonus Story
Why This Midwest Utility Is the Hottest Stock on Wall Street Right NowSubmitted by Chris Markoch. Article Posted: 4/13/2026. 
Key Points
- NiSource is benefiting from rising Midwest data center demand tied to AI infrastructure growth.
- Natural gas is emerging as a near-term solution for hyperscalers needing reliable 24/7 power.
- NI remains in a strong uptrend, but valuation and momentum suggest a pullback may offer a better entry.
- Special Report: Elon’s “Hidden” Company
In real estate, the mantra is location, location, location. That same idea helps explain the recent surge in NiSource (NYSE: NI) stock. NiSource, a regulated utility, has become a favorite among analysts. In fact, despite the stock being up about 16% in 2026, KeyCorp recently raised its price target for NI. But does that mark a ceiling — or a floor? On the surface, NiSource is a typical regulated utility that delivers natural gas and electricity to residential, commercial and industrial customers. What’s changed is the demand dynamic as the data center buildout pushes into the nation’s heartland. NiSource Proves Why Location MattersThe bull case for NI isn’t new, but it bears repeating. Hyperscalers need data centers to house the servers and cooling and power infrastructure that fuel their artificial intelligence (AI) ambitions. But building a data center isn’t as simple as finding land and dropping a facility into place.
Liberation Day wiped over $2 trillion from markets in a single day. Then a 90-day tariff pause added $4 trillion back to the S&P 500. Trump's AI initiatives sent Palantir up over 140%. Trader Larry Benedict says all of that was just the warm-up.
Benedict is calling what comes next 'Project 2026' - a move he believes could send billions, potentially trillions, into overlooked corners of the market. He's identified one ticker sitting at the center of it all, and he's revealing the name today at no cost. Larry is calling it "Project 2026."
Power is the binding constraint. AI workloads are energy-intensive, and a data center requires reliable 24/7 electricity to operate. That demand is colliding with an aging grid that needs upgrades for many uses beyond data centers. New nuclear is back in the conversation, but its payoff is years away. In the nearer term, natural gas remains the practical bridge. Natural gas has become the preferred fuel for hyperscalers, and NiSource could play a significant role. One of NiSource’s key operating regions is the Midwest, which is increasingly attractive for data centers for three main reasons:
Cheaper land Lower cost power Available grid capacity Why NiSource specifically? KeyCorp highlighted that the company’s primary jurisdictions have constructive regulatory environments, including relatively modest regulatory lag. That provides cost certainty and helps NiSource generate stable, predictable earnings. Is NI Priced for Perfection?NI is up about 16% year to date, pushing its price-to-earnings ratio above 24x. That’s a premium to the broader market and its sector, though not an extreme outlier. Still, investors should consider whether recent gains already reflect the most likely outcomes. Technically, NI has been in a steady uptrend since bottoming near $38 last spring, producing a series of higher lows that suggest accumulation rather than speculation. The 50-day moving average, currently near $46, has acted as a reliable floor through several pullbacks, including a sharp but brief dip in early March that was quickly bought.  The stock closed on April 9 at $48.47, comfortably above that moving average — a constructive sign. The 14-day RSI has climbed into the mid-60s, just below overbought territory, while the 53 signal line confirms the broader uptrend is intact. The gap between those lines suggests NI may need to digest recent gains before moving higher. Volume has been relatively steady without the climactic surge that typically marks a market top, which is mildly encouraging for bulls. Overall, the chart indicates NI is extended in the short term but not broken. A pullback toward the 50-day moving average near $46 would offer a more comfortable entry for investors who believe the data center thesis still has room to run. Why Utilities Like NiSource Are Gaining Investor AttentionA roughly 16% year-to-date gain for a regulated utility is uncommon, and momentum can cut both ways. Utilities often attract defensive flows, but that dynamic can reverse quickly when risk appetite returns. Valuation is a legitimate concern, but context matters. Regulated utilities rarely trade at growth multiples unless the market sees a visible, durable earnings catalyst. In NiSource’s case, the data center narrative could provide that catalyst. If even a handful of hyperscaler agreements materialize in its key jurisdictions, the company’s earnings trajectory could justify today’s multiple. That said, much of the easy money may already be behind the stock. The analyst community has noticed NiSource — KeyCorp's raised price target likely won't be the last upgrade — but upgrades often cluster near peaks as well as at inflection points. Investors who missed the initial move should consider waiting for a pullback instead of chasing a utility that appears extended. Bottom line: NiSource has earned its moment. Its Midwest footprint, constructive regulatory environment and natural gas infrastructure position it well for one of the most capital-intensive buildouts in modern technology. The key question is how much of that advantage the market has already priced in. |
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