Energy Consumption to Soar: 3 Stocks to Power your Portfolio

AI Industry Insights - Bill Gates highlighted the revolutionary impact of AI, particularly OpenAI's ChatGPT, which excelled in an AP Bio exam by answering 59 out of 60 questions correctly [1] - Major tech companies, referred to as the "Magnificent 7," are investing heavily in AI, with worldwide AI spending projected to exceed $632 billion by 2028, reflecting a compound annual growth rate (CAGR) of approximately 29% [2] Data Center Energy Consumption - The startup costs for AI, including GPUs and data centers, are substantial, and energy consumption for data centers is expected to double or triple by 2028 [3] - The US electric grid is nearing capacity, leading to increased demand from data centers, which may force tech companies to secure their own energy sources [3] Energy Sector Opportunities - The energy sector is positioned favorably due to supply and demand dynamics, as well as a regulatory-friendly environment following recent executive orders aimed at easing restrictions on energy producers [4] Company Highlights - OKLO: An advanced nuclear technology company focused on small modular reactors (SMRs) that aim to provide clean and affordable energy. The company has connections in the AI industry and Washington, which may provide a competitive edge [5][6] - CEG (Constellation Energy): A leading energy company expanding its clean energy portfolio, recently announced the acquisition of Calpine Corp. for $16.4 billion, which is expected to be accretive to earnings per share (EPS) [8][9] - BE (Bloom Energy): Utilizes natural gas and other fuels to generate electricity, recently saw a 59% increase in shares following a deal to supply fuel cells to American Electric Power for AI data centers [12][14] Market Sentiment - OKLO shares have increased approximately 150% over the past year, indicating strong investor interest despite the lack of revenue [7] - CEG shares surged over 20% following the announcement of the Calpine acquisition, reflecting positive market sentiment [10] - Analysts are increasingly bullish on CEG, with several raising earnings estimates in recent months [11]