AI Power Shift: 2 Stocks Poised to Surge by 2026
As the demand for artificial intelligence (AI) applications continues to rise, investors are increasingly looking for key players in the infrastructure space. This growth opens opportunities in energy and technology sectors, focusing on companies that support the expanding power needs of data centers.
AI Power Shift: Companies Positioned for Growth by 2026
In 2024, global AI data center power demand is projected to reach 68 gigawatts. This figure is expected to skyrocket to 327 gigawatts by 2030, according to Rand Corp. Such substantial growth emphasizes the need for reliable energy sources and infrastructure investments.
NextEra Energy: A Key Player in AI Infrastructure
NextEra Energy (NEE), a Florida-based company, is poised for significant growth. It operates the largest utility company in the U.S., serving over 12 million customers through Florida Power & Light. The company also has a substantial renewable energy segment, NextEra Energy Resources.
- Recent Deal: NextEra partnered with Google Cloud in December to establish several new AI data centers.
- Expansion Plans: The company aims to increase its production capabilities by delivering an additional 15 gigawatts of power to data centers by 2035.
- Financial Growth: NextEra reported a net income of $2.97 billion for the full year, marking an increase from $2.3 billion the previous year.
Management anticipates an annual compound growth rate of at least 8% through 2032, complemented by a 10% dividend growth forecast for 2026.
Credo Technology: Enhancing Data Connectivity
Credo Technology (CRDO) specializes in high-speed data connectivity solutions for data centers. Its Active Electrical Cables (AECs) offer significant advantages by reducing signal degradation and power consumption.
- Recent Partnership: Credo announced a collaboration with TensorWave, an AI cloud provider working with Advanced Micro Devices.
- Financial Performance: For the second quarter of fiscal 2026, Credo reported a revenue of $268 million, an impressive 272% increase year-over-year.
- Future Projections: The company projects its fiscal third-quarter revenue will range between $335 million and $345 million.
Credo’s unique solutions are critical for ensuring efficient data transfers between chips and switches, a vital aspect of AI operations in data centers.
Investment Opportunities in a Growing Market
Investors looking for exposure to the booming AI sector can consider both NextEra Energy and Credo Technology. NextEra offers a stable investment with predictable growth and dividends, while Credo provides essential technology to meet the efficiency demands of modern data centers.
These companies are well-positioned to capitalize on the increasing power requirements projected for AI applications, making them attractive options for diversifying any AI-focused investment portfolio.
