Is Vistra (VST) Still The Best Data Center Energy Stock?

Number of Hedge Funds: 106

Top Pick Of: Stephen Mandel — Lone Pine Capital

Vistra (NYSE:VST) is different AI banal billionaires tin not get capable of. As request for AI information centers grows, truthful does the request for power. Vistra is simply a powerfulness shaper sitting close successful the mediate of that trend.

The institution expects energy request successful ERCOT, the grid covering astir of Texas, to turn 5% to 6%. In PJM, the largest wholesale energy marketplace successful the U.S., it expects maturation of 2% to 3%. Both figures are good supra humanities norms.

It has a full procreation capableness of astir 44 GW. Roughly 62% comes from earthy gas, astir 15% from nuclear, and the remainder from ember and renewables. Its atomic fleet is the 2nd largest successful the U.S.

Companies are lining up to fastener successful semipermanent supply. Meta signed a astir 2.6 GW, 20-year atomic powerfulness acquisition statement with Vistra. Amazon signed a astir 1.2 GW, 20-year atomic PPA arsenic well.

Another cardinal differentiator is span power. Vistra uses gas-fired plants located adjacent information centers to proviso impermanent energy erstwhile grid connections are delayed. That allows information centers to travel online faster and makes Vistra much flexible than accepted utilities that trust connected slower grid infrastructure.

Brown Advisory Mid-Cap Growth Strategy stated the pursuing regarding Vistra Corp. (NYSE:VST) successful its fourth 4th 2025 capitalist letter:

"Vistra Corp. (NYSE:VST): Operates arsenic a retail energy and powerfulness procreation company. Vistra (VST) benefited from rising powerfulness request successful Texas, accrued involvement from information halfway customers successful straight sourcing generation, and increasing capitalist appreciation for atomic assets. During the year, the institution signed a ample powerfulness acquisition statement with a large hyperscaler for its Comanche Peak atomic installation successful Texas, and we spot the imaginable for further ample deals successful the aboriginal (Click Here to Read the Letter successful Detail)."

While we admit the imaginable of VST arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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