Artificial Intelligence is here to stay, and my view is demand will only increase significantly.
Increasing AI demand and usage means (1) increased energy requirements, and (2) increasing number of data centres that require cooling.
So the topic of this post is (1) leading energy companies, and (2) leading thermal management stocks. In essence, 'picks and shovels' types of plays.
All stocks mentioned below have the potential for multi-week bases around their 10-week SMA. Assume I have a position in all mentioned.
I put a significant emphasis in my own trading on both fundamentals, but also technicals - in particular the relative strength of a stock vs the index and its peers.
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Energy Related Stocks:
NRG Energy (NYQ:NRG)
Vistra (NYQ:VST)
GE Vernova (NYQ:GEV)
Constellation Energy (NSQ:CEG)
The annual EPS estimates of these stocks are interesting going into ATH territory vs the last 8-years and forward guidance being raised.
Thermal Management Related Stocks:
Vertiv Holdings Co (NYQ:VRT)
You can read more about VRT's partnership with NVIDIA (NSQ:NVDA) on their website: https://www.vertiv.com/en-emea/solutions/ai-hub/vertivs-nvidia-partnership-leads-to-breakthroughs-in-technology-that-support-ais-future/
If you want to learn more about the types of setups I target and how I manage positions, head over to my YouTube channel for free resources.
If there's AI 'picks and shovels' types of stocks you're thinking about, I'd be interested to hear your views in the comments.
Take Care & Good Trading,
Jack
