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Exclusive Content from MarketBeat Media 3 Energy Stocks to Buy as AI Power Demand Surges—and 2 to AvoidSubmitted by Bridget Bennett. Date Posted: 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's "Hidden" Company
The biggest names in energy and technology are all in the same room this week—and the conversation isn't about oil prices. It's about electricity, and that distinction matters. Often dubbed the "Super Bowl of energy," CERAWeek is the world’s premier annual energy conference, where major players gather in Houston to discuss markets, geopolitics, and technology. After nearly five decades on Wall Street, Louis Navellier says a major currency shift is already underway - and the wealthiest Americans, including Musk, Zuckerberg, and Ellison, are quietly moving money out of dollars and into a different type of asset entirely. It's not bitcoin or any other crypto. Navellier has identified 7 companies he believes are positioned at the center of this trend - the last time he spotted a setup like this, Nvidia climbed as high as 10,000%. Watch Navellier's urgent briefing and get all 7 company names 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 rising power demand. Altimetry Research’s Joel Litman and Rob Spivey highlight a central conclusion 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 Grid For roughly 15 years, electricity usage in the United States barely moved even as GDP grew. That trend shifted around 2022. Even before the latest geopolitical concerns in the Middle East, power demand was rising. Reindustrialization, data-center proliferation, 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 doesn't exist yet. That's the tension at CERAWeek. 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 charged heading into November's elections. Companies that need reliable power may be forced to source it at market prices or go off-grid entirely, which only accelerates overall demand. 3 Stocks Positioned to Profit From the AI Power Buildout 1. MasTec: The Builder Behind the Buildout MasTec (NYSE: MTZ) is the engineering, procurement and construction firm that physically 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 the case compelling is what standard financial reporting misses. Altimetry argues MasTec is roughly twice as profitable as reported metrics suggest. The company carries an approximately $19 billion backlog, a figure that provides years of revenue visibility. Management guided for $17 billion in 2026 revenue, roughly 19% growth, and adjusted earnings per share (EPS) of $8.40. A record 18-month backlog of $18.96 billion lends that guidance added credibility. The market, however, appears to be pricing MasTec for a typical economic cycle, not a multi-year infrastructure supercycle. That disconnect creates the opportunity. Altimetry's research on "doubles that double again" found that, in the middle of a bull market, stocks that have already doubled carry 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 Center Regal Rexnord (NYSE: RRX) tells a different story. The legacy industrial company—historically known for motors and machine parts—has moved up the value chain into data-center power management, and the market hasn't fully priced that shift. 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 entering a data center so high-value chips from NVIDIA and Micron (NASDAQ: MU) stay safe. 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 about a third over the past few years as it shifted toward higher-margin solutions. But reported metrics don't fully capture that transformation. Recent stock volatility—driven partly by geopolitical jitters and recurring "AI spending is over" scares—may offer a more attractive entry point. The distinction Altimetry emphasizes is important: this AI investment cycle is not the dot-com bubble. In 1998 and 1999, capital flowed to companies with little or no revenue. Today, spending is coming from massively cash-rich hyperscalers with demand they cannot yet satisfy. 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 Future EQT (NYSE: EQT) is the largest natural gas exploration and production company in the United States, and Altimetry calls it an essential near-term cog in the AI power story. The logic is straightforward: while nuclear and renewables generate long-term excitement, natural gas is the only viable baseload power source that can be deployed at scale within the next five years. Solar doesn't run at night. Wind can be intermittent. Battery storage currently 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. The company's vertical integration makes it one of the country's lowest-cost gas producers at roughly $2 per MMBtu. Management guided for 2026 adjusted EBITDA of about $6.5 billion and free cash flow of $3.5 billion. The company is also completely unhedged for 2026—a deliberate bet 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 largely 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 Opportunity 1. CoreWeave: The WeWork of AI? Now for the names to avoid. The first is CoreWeave (NASDAQ: CRWV). Altimetry's comparison is blunt: CoreWeave looks like 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 functions like a data-center REIT with a slicker brand and has never produced meaningful profitability. It reported a negative 22.74% profit margin and a negative 50.27% return on equity. Yet the market prices CoreWeave for a return on assets north of 25%—roughly five times what comparable data-center operators typically achieve. The company carries a $29.8 billion debt load, a 0.46 current ratio and 16.5% short interest. Even as revenue surges, capital expenditures are expected to more than double in 2026, which constrains any path to near-term profitability. Altimetry notes that while headline metrics can be shaped to suggest future profitability, the underlying economics tell a different story. CoreWeave's economic profit has been negative since it went public, and Altimetry doesn't see a reason for that to change soon. 2. Oklo: A Cool Idea Still Years Away From Reality Altimetry's critique isn't an indictment of nuclear energy broadly—it's aimed at Oklo (NYSE: OKLO) specifically. The small modular reactor company captured investor imagination with a partnership with Meta and backing from Sam Altman, but it trails 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 the power, making it effectively a leasing business with cost-of-capital-level returns. The math doesn't stack up at current pricing. New-build nuclear power costs roughly $200 to $250 per megawatt hour, while hyperscalers are contracting power in the mid-hundreds of dollars per megawatt hour. 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 that cushion doesn't change the economics of a leasing model that may never reach the return profile investors are pricing in. If the small-modular-reactor 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 Profit The through-line across these names is clear: the AI power buildout is real, massive and still early. But not every company riding the narrative deserves investor capital. Firms with proven demand, deep backlogs and underappreciated profitability—MasTec, Regal Rexnord and EQT—look positioned to capture years of growth. Companies trading on hype and venture-capital packaging—CoreWeave and Oklo—could leave investors holding expensive lessons. The real signal from CERAWeek isn't a recommendation of any single stock. It's that the convergence of energy and AI is shaping this investment cycle, and the companies that physically build, power and fuel that infrastructure may be the most durable way to play it. |
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