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This Week's Featured News
Why This Midwest Utility Is the Hottest Stock on Wall Street Right NowReported by Chris Markoch. Date 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 principle helps explain the recent surge in NiSource (NYSE: NI) stock. NiSource is a regulated utility that has suddenly become a favorite of analysts. In fact, despite the firm being up roughly 15% in 2026, KeyCorp recently raised its price target for NI. But is that setting 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. The company has drawn attention, however, 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’s worth explaining. Hyperscalers need dedicated data centers to house servers and related equipment for their artificial intelligence (AI) ambitions. That demand, however, creates a steep energy requirement.
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AI is an energy-intensive workload. A data center needs reliable, 24/7 power, which places strain on an aging electrical grid that must be upgraded for many applications beyond data centers. That reality has renewed interest in nuclear power, but new reactors take years to come online. In the nearer term, natural gas often fills the gap. Natural gas has become the preferred fuel for hyperscalers, and NiSource could play a pivotal role. NiSource’s Midwest footprint is increasingly strategic for data centers for three main reasons:
Cheaper land Lower power costs Available grid capacity KeyCorp’s analysis highlights that NiSource’s primary jurisdictions have constructive regulatory environments, including relatively modest regulatory lag. That gives companies more cost certainty, and supports stable, predictable earnings for NiSource. Is NI Priced for Perfection?NI is up roughly 15% in 2026. That has pushed its price-to-earnings ratio above 24x — a premium to the broader market and its sector, though not an extreme one. Still, investors must consider whether the biggest gains are already priced in. NI has been in a steady uptrend since bottoming near $38 last spring, recording a series of higher lows that suggests 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, which is a bullish sign. Momentum is the main caveat: the 14-day RSI has climbed into the mid-60s, just below overbought territory. The signal line at 53 confirms the broader uptrend remains intact, but the gap between the two suggests NI may need to digest recent gains before a next leg higher. Volume has been relatively steady without the kind of climactic surge that often signals a top, which is mildly encouraging for bulls. Taken together, the chart suggests NI is extended in the short term but not broken. A pullback toward the 50-day moving average near $46 would be a more attractive entry for investors who believe the data center thesis has further to run. Why Utilities Like NiSource Are Gaining Investor AttentionA roughly 15% year-to-date gain for a regulated utility is uncommon, and momentum can work both ways. Utilities often attract defensive money, 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 be that catalyst. If even a few hyperscaler deals materialize in its key jurisdictions, today’s premium valuation could look reasonable in hindsight. That said, much of the easy money may already be behind this run. Analysts have noticed NiSource — KeyCorp's raised price target may not be the last upgrade — but upgrades can cluster near peaks as often as they cluster near inflection points. Investors who missed the initial move would be prudent to wait for a pullback rather than chase a utility that appears extended. NiSource has earned attention. Its Midwest footprint, favorable regulatory backdrop, and natural gas infrastructure place it squarely in the path of one of the most capital-intensive buildouts in modern technology history. Location, it seems, really does matter. The remaining question is how much of that advantage the market has already priced in. |
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