10 Cheap Utility Stocks to Buy According to Hedge Funds

Page 9 of 9

1. PG&E Corporation (NYSE:PCG)

Number of Hedge Fund Holdings: 76 

PG&E Corporation (NYSE:PCG), serving about 16 million people across Northern and Central California, is advancing innovation and sustainability initiatives in 2025 and tops our list for being one of the cheap utility stocks. A key recent development is its $25 million Innovation Pitch Fest set for September in Oakland, inviting entrepreneurs and tech experts to propose scalable solutions for challenges like managing AI data center energy demands, neighborhood electrification, wildfire mitigation, and AI-driven safety enhancements. This reflects the company’s commitment to using cutting-edge technology to support California’s ambitious environmental goals.

PG&E Corporation (NYSE:PCG) also reported surpassing its 2025 target with a 42% reduction in methane emissions, demonstrating progress in environmental performance. Operationally, the business is optimizing its natural gas transmission capacity for October 2025 to improve efficiency.

Supporting its modernization efforts, PG&E Corporation (NYSE:PCG) secured a historic $15 billion loan from the Biden administration to fund climate initiatives and grid upgrades. This includes projects to increase hydroelectric dam capacity and develop “virtual power plants,” highlighting a broad strategy to modernize California’s energy infrastructure while promoting clean, reliable power.

While we acknowledge the potential of PCG to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PCG and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

Page 9 of 9