AI-Related Stocks: Vistra and Vertiv Positioned for Growth

AI stocks face sell-off pressures, but companies like Vistra and Vertiv show potential. Investors eye promising valuations and growth in renewable energy and data centers.

Date: 22-03-2025

AI Rating: 7

Market Overview: The report addresses the recent sell-off in AI-related stocks, attributed to profit-taking and valuation concerns. In this context, companies like Vistra and Vertiv are suggested as solid investment opportunities.

Vistra: The report highlights Vistra as a strong performer in the S&P 500, with increased generating capacities in nuclear and renewable energy. Vistra's nuclear capacity rose substantially from 2,400 MW to 6,448 MW, marking a 169% growth. This aligns with growing market interest in carbon-free energy sources, particularly among major cloud service providers utilizing nuclear power.

Vertiv: Vertiv is also positioned favorably, seeing a significant 18% organic sales increase and a 30% surge in orders. The backlog reached $7.2 billion, indicating strong demand. Though some weakness in Europe was noted, it was attributed to external delays rather than a lack of demand. Vertiv's estimates suggest a valuation of less than 24 times earnings for 2025, with remarkable growth potential anticipated.

Earnings Growth Potential: While the specific figures for Earnings Per Share (EPS), Revenue Growth, Net Income, Profit Margins, Free Cash Flow (FCF), and Return on Equity (ROE) were not explicitly stated, the growth metrics shared (e.g., capacity growth for Vistra and sales increase for Vertiv) provide a positive outlook for both companies.

Stocks: VST VRT