1. The AES Corporation (NYSE:AES)
Forward Price-to-Earnings Multiple: 6.38x
Number of Hedge Fund Holders: 72
The AES Corporation (NYSE:AES) is one of the undervalued infrastructure stocks to buy now.
The AES Corporation (NYSE:AES) is navigating a shifting energy landscape, where fresh capital, evolving policy support, and a complicated data center buildout backdrop are all moving at once.
On June 11, 2026, The AES Corporation (NYSE:AES) priced a dual-tranche senior notes offering totaling $1 billion, consisting of $600 million of 5.200% notes due 2029 and $400 million of 5.750% notes due 2033. The closing is expected on June 16, 2026, subject to customary conditions.
That capital raise arrived against a nuanced backdrop for power demand.
On June 5, 2026, Jefferies flagged intensifying local opposition to data center construction across the United States, citing a May 2026 Embold Research survey showing approximately 71% of respondents either somewhat or strongly opposed to data centers being built near their communities. That figure was up from roughly 51% in February and approximately 42% in September. The firm identified the Midwest, Southeast, Texas, and Northwest as mostly constructive regions for continued build-out, with lower population density, lower median incomes, and Republican-leaning composition cited as net favorable factors.
The same Jefferies note touched on The AES Corporation (NYSE:AES) more directly. The Department of Energy announced support for 13 coal-fired power plants alongside a new $500 million coal export infrastructure investment fund. Jefferies said that support includes AES’s Maryland and Puerto Rico coal sites, adding a policy dimension to the company’s existing asset mix.
The AES Corporation (NYSE:AES) is a global power company. It develops, owns, and operates a diversified portfolio of electricity generation and distribution assets, and its operations are increasingly focusing on renewable energy and energy storage. The company deploys utility-scale battery energy storage systems across multiple markets.
While we acknowledge the potential of AES 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 AES and that has 100x upside potential, check out our report about the cheapest AI stock.
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