Abdul Rahman
2 min read
In This Article:
Vistra Corp. (NYSE:VST) is one of the 10 best AI stocks to buy according to billionaire David Tepper. On June 19, Morgan Stanley lifted its price target for Vistra stock to $186 from $178 while maintaining an “Overweight” rating. Analyst David Arcaro communicated this update.
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Arcaro cited three reasons for the update, with the primary factor being the strong fundamental backdrop for the power sector, specifically the rising demand for electricity from AI-driven data centers. He noted a “demand pull” coupled with upward pressure on wholesale power prices.
The other reason is Vistra’s strategic positioning. Vistra operates the second-largest fleet of competitive nuclear power plants in the U.S. The plants offer 24/7 and zero-carbon power, which is crucial for data centers. The company also has substantial battery energy storage capacity, such as its Moss Landing facility, which helps optimize energy delivery and meet peak demand.
The third reason for the upgrade is Vistra’s financial discipline and shareholder returns. Arcaro noted that the company has been actively returning capital to shareholders and has hedged approximately 95% of its expected generation for 2025 and 2026.
Vistra Corp. (NYSE:VST) is an American integrated power company. It generates and sells electricity and natural gas through five segments: Retail, Texas, East, West, and Asset Closure. Its portfolio includes about 41,000 megawatts of capacity from natural gas, nuclear, coal, solar, and battery storage assets.
While we acknowledge the potential of VST as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None.
