We just published a list of 12 Trending AI Stocks on Current News and Ratings. In this section, we’ll look at how STMicroelectronics NV (NYSE: STM ) stacks up against other AI stocks based on recent news and ratings.
The demand for power-intensive AI data centers is exceeding the supply, and while solutions such as crypto site revolution, and nuclear power are promising, greater action is needed to avoid a critical energy shortage in the near future.
Interview at CNBC’s ‘The Exchange,’ Stephen Byrd from Morgan Stanley discussed the possibility of converting crypto mining facilities into data centers to address the lack of electricity for AI data centers. He said that while Bitcoin mining companies have profitable options, including turning sites into data centers, the high price of Bitcoin affects the options.
Byrd predicted a significant energy deficit of more than 30 gigawatts by 2028, with solutions such as Bloom Energy’s fuel cells and crypto site revolution providing relief. However, he warns that connecting new data centers to the grid could take years, and electricity prices could rise, making political problems possible. Other solutions include nuclear power and natural gas turbines, especially in states like West Texas.
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Major US oil companies are considering entering the energy market by offering gas-fired power plants and carbon capture technologies to meet the growing power of AI data centers. Reuters reported that Chevron has been in talks for more than a year to provide gas-fired power combined with carbon capture solutions, while Exxon plans to provide low-carbon power to data centers by the end of the decade.
The move comes as the rise of AI technology is driving a sharp increase in electricity demand, resulting in the need for new energy sources. Companies plan to use their expertise in natural gas and carbon capture to help meet this demand, potentially reshaping the energy market.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. We listed stocks in their rising hedge fund sentiment taken from Insider Monkey’s database of 900 hedge funds.
Why do we like the stocks that hedge funds invest in? The reason is simple: our research has shown that we can outperform the market by following the best pictures of the best quality hedge funds. Our quarterly newsletter strategy selects 14 small-cap and large-cap stocks each quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more here)
