I have Vistra and CEG on my radar. Both have contracts with hyper scalers. Both have good rev, margins and rather high upside.
CEG – ran a lot already plus worse performance in bull markets, politically sensitive and a lot of good news is already priced in, beat Q1 massively
Vistra – huge upside, but margin collapse in 2025 is concerning, more energy mix, in Q3 their M&A deal is supposed to close if they pass regulatory approval
VST is primarily a gas company with a nuclear kicker. CEG is primarily a nuclear company with a gas kicker.
CEG bevause has more "green" energy might be the favorite child of tech firms, but still not sure which to pick.
And I know there are SMR but its super speculative so trying not to touch it.
Any ideas? Or maybe you have your own picks like Siemens Energy or GE Vernova?
Posted by Resident-Paint-8318
6 Comments
Buy UTG.
Vistra will be huge
Honestly feels like the whole “AI power demand” trade is getting crowded now. Everyone already knows the hyperscalers need energy. The real question is who actually makes money after all the capex and regulation headaches hit.
VST feels higher beta. CEG feels safer but kinda priced for perfection already. Curious how many people here think this turns into another clean energy bubble.
personally I’d lean CEG. feels more directly tied to the AI/data center power narrative and hyperscalers seem to prefer the clean baseload story…. Yeah a lot is priced in but the market usually pays up for the clearer narrative….
VST probably has more torque if things go right though…. higher upside, higher chance of disappointment too.
For what it is worth, Nancy Pelosi holds VST.
Also for what it is worth, after tons of research, I chose CEG over VST
What’s the vst margin collapse about?