Analyst Warns About Valuation of This AI Energy Stock – ‘Feels Like 1999’

Core Insights - Vistra Corp. (NYSE:VST) is currently under scrutiny regarding its stock valuation, with analysts suggesting a preference for AI hardware and software stocks over energy plays [1][2] - The company is positioned to benefit from increasing power demand driven by the growth of artificial intelligence, which has led to rising investor expectations for future power prices [3] - Despite the potential for Vistra Corp., some analysts believe that other AI stocks may offer better returns with lower risk [3] Group 1 - Doug Clinton from Deepwater Asset Management expressed concerns about Vistra Corp.'s valuation and recommended focusing on AI hardware and software stocks instead of energy stocks [1][2] - The Carillon Eagle Mid Cap Growth Fund highlighted Vistra's potential to secure future power purchase agreements (PPAs) with large tech companies to meet their AI-related power needs [3] - Analysts are comparing the current state of AI investments to the late 1990s tech bubble, indicating a cautious outlook on energy stocks like Vistra [2][3]