12 Best Electric Utility Stocks to Buy for the Data Center Power Surge

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6. Xcel Energy Inc. (NASDAQ:XEL)

Number of Hedge Fund Holders: 57

Xcel Energy Inc. (NASDAQ:XEL) is a major US electricity and natural gas company, with operations in 8 Western and Midwestern states.

On May 4, Evercore ISI raised its price target on Xcel Energy Inc. (NASDAQ:XEL) from $93 to $96, while maintaining an ‘Outperform’ rating on the shares. The target boost, which reflects an upside of over 19% from the current price levels, comes after the company reported its Q1 2026 results on April 30.

Xcel Energy Inc. (NASDAQ:XEL)’s adjusted earnings of $0.91 per share in the first quarter were in line with expectations, as the higher recovery of electric ​infrastructure investments and stronger sales helped offset warm weather and ‌ higher financing costs. However, the company’s revenue of $4 billion fell short of estimates by $90 million, despite a YoY growth of almost 3%.

Xcel Energy Inc. (NASDAQ:XEL) reaffirmed its EPS guidance range of $4.04 to $4.16 per share for full-year 2026. Moreover, the company remains confident to deliver 6% to 8+% long-term earnings growth and expects to deliver 9% EPS growth on average through 2030.

While we acknowledge the potential of XEL as an investment, 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 XEL and that has 100x upside potential, check out our report about the cheapest AI stock.

Click to continue reading and see the 5 Best Electric Utility Stocks to Buy for the Data Center Power Surge.

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