In this piece, we will shed light on the 10 Best AI Energy Stocks to Buy in 2026.
On April 10, 2026, Reuters reported that U.S. utility stocks delivered their strongest start to a year since 2019. This comes as investors shift toward defensive exposure during the Iran war, while also positioning for rising electricity demand linked to artificial intelligence infrastructure. In addition to utility stocks’ traditional role as lower-volatility, dividend-paying defensive investments, these stocks are benefiting from a structural shift in demand.
LSEG data showed the S&P 500 Utilities Index rose 7.5% in the first quarter, while the broader S&P 500 declined 4.6% over the same period, pressured by inflation concerns amid higher energy prices.
Reuters highlighted that major technology companies are building large-scale data centers to enhance their AI expansion, driving a surge in power needs. According to the Electric Power Research Institute, electricity demand from data centers could rise more than fourfold by the end of the decade, potentially accounting for up to 17% of total U.S. electricity consumption.
In an interview with Reuters, Gerry Sparrow of Sparrow Capital Management highlighted demand tied to data centers from Alphabet, Meta Platforms, and Oracle, which is already influencing individual utility stocks. Even if a U.S.-Iran ceasefire shifts some investor expectations back toward cyclical sectors, Reuters indicated that utility companies with direct exposure to AI-related data center expansion are likely to continue attracting investor interest. Among these companies are American Electric, Dominion Energy, NextEra Energy, Xcel Energy, and Duke Energy.
Gerry Sparrow, president at Sparrow Capital Management, said:
“I read a few recent quarterly calls from some of the utility companies and the big drivers are the data centers and the increased electricity demand, which is crowding out other interests. The data center demand is coming from technology companies — in particular Alphabet, Meta Platforms and Oracle, with their capital budgets that include data center buildout for AI. So that’s some of the stuff that’s moving the market around, especially around individual utility companies.”
Methodology
To curate our list of the 10 best AI energy stocks to buy in 2026, we scanned across screeners and financial media to identify AI energy stocks. We define these stocks as ones that either directly supply electricity to AI data centers or deliver the AI infrastructure and fuel systems required to support AI-driven power demand.
Our final list includes only stocks with robust analyst and hedge fund support. To assess hedge fund sentiment, we relied on Insider Monkey’s hedge fund database, which tracks over 1,000 hedge funds as of Q4 2025. Our final list is ranked in ascending order based on their potential share price upside.
Note: All data was extracted as of April 9, 2026.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10. EQT Corporation (NYSE:EQT)
EQT Corporation (NYSE:EQT) features in our list of the best AI energy stocks to buy in 2026.
As of April 9, 2026, analyst sentiment around EQT Corporation (NYSE:EQT) remains bullish, with 69% of the covering analysts maintaining “Buy” ratings on the stock. Meanwhile, the consensus price target of $70.00 implies an upside potential of 16.32%.
On March 27, 2026, BMO Capital analyst Phillip Jungwirth raised EQT Corporation (NYSE:EQT)’s price target to $76 from $68 while keeping an “Outperform” rating, emphasizing that the company is well-positioned to produce outsized free cash flow in the quarter following strong operational performance.
BMO noted that the company’s integrated midstream platform and marketing capabilities are expected to enable it to take advantage of pricing dislocations, while ongoing strength in in-basin demand and takeaway projects provides additional optionality for growth and improved differentials.
This development was further supported by a pair of bullish analyst calls earlier in the month.
On March 23, 2026, Truist initiated coverage on EQT Corporation (NYSE:EQT) with a “Buy” rating and a $74 price target, emphasizing the company’s scale and high-quality asset base. Moreover, as part of its Q1 earnings preview on March 17, 2026, JPMorgan updated its strip pricing model and increased its price target from $68 to $72, while maintaining an “Overweight” rating.
EQT Corporation (NYSE:EQT) is a natural gas production company involved in the provision of supply, transmission, and distribution of natural gas.
9. Regal Rexnord Corporation (NYSE:RRX)
Regal Rexnord Corporation (NYSE:RRX) is one of the best AI energy stocks to buy in 2026.
As of April 9, 2026, analyst sentiment around Regal Rexnord Corporation (NYSE:RRX) remains strong, with 83% of the covering analysts maintaining “Buy” ratings on the stock. The consensus price target of $239 implies an upside potential of 17.07%.
Following a meeting with management, Barclays increased its price target for Regal Rexnord Corporation (NYSE:RRX) from $237 to $245 while keeping an “Overweight” rating on March 23, 2026. According to the bank, the company’s organic investments and portfolio adjustments keep it well-positioned for stronger sales growth throughout the remainder of the decade. Additionally, the call supports a longer-term execution narrative, indicating Barclays’ expectations that Regal Rexnord Corporation (NYSE:RRX) will emerge from its portfolio restructuring with a more robust growth base rather than only depending on a cyclical comeback.
Regal Rexnord’s discussion of the leadership change supported the positive sentiment.
On March 16, 2026, Regal Rexnord Corporation (NYSE:RRX) noted progress in the company’s CEO succession process, stating that its board had identified several highly competent candidates and decided to keep CEO Louis Pinkham in the role under the earlier agreement. Back on October 29, 2025, CEO Louis Pinkham decided to remain in position until June 30, 2026, or until a successor is appointed.
The extension will benefit Regal Rexnord Corporation (NYSE:RRX) by helping it maintain consistency as it focuses more on execution, expansion, and achieving another strong year.
Regal Rexnord Corporation (NYSE:RRX) is a company that manufactures and provides engineered solutions for powering, transmitting, and controlling motion across various industries. It produces electric motors, power transmission components, and automation controls, serving markets including industrial, commercial, aerospace, and energy.
