Is SEI a good stock to buy? We came across a bullish thesis on Solaris Energy Infrastructure, Inc. on R. Dennis’s Substack by OppCost. In this article, we will summarize the bulls’ thesis on SEI. Solaris Energy Infrastructure, Inc.’s share was trading at $80.46 as of June 30th. SEI’s trailing P/E was 94.37 according to Yahoo Finance.
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Solaris Energy Infrastructure, Inc. provides modular and scalable equipment-based solutions for power generation, control and distribution, and management of raw materials used in the completion of oil and natural gas wells in the United States. SEI’s investment identity has increasingly shifted toward rapidly deployable natural gas power generation for AI data centers facing severe grid constraints and interconnection delays. The bullish trade involves buying to open 1,500 January 15, 2027 $95 calls at $14.90, reflecting a high-conviction leveraged expression of upside ahead of major capacity additions and contracted revenue inflection points.
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The company’s transformation is reflected in 2025 revenue of $622.21 million, up nearly 99% year over year, while Q1 2026 results showed revenue of $196.2 million, up 55.3%, EPS of $0.44 versus $0.26 consensus, and EBITDA margins of 42.6%, driven by 160% growth in the Power Solutions segment. The core investment thesis is anchored in a multi-gigawatt contracted backlog exceeding 2 GW, including long-term agreements with leading technology customers and a newly signed 10-year, 600+ MW contract, with visibility expanding toward roughly 3.1 GW of pro-forma capacity over a 10–15 year horizon.
Management has reinforced operational momentum by raising both Q2 and Q3 2026 adjusted EBITDA guidance, signaling accelerating execution into a strengthening demand cycle. A key near-term catalyst sits directly within the option’s window, with a 500+ MW, 10-year equipment rental agreement beginning January 1, 2027, creating a potential revenue ramp coinciding with expiration.
Sentiment remains supportive, with analyst upgrades and price targets clustered in the mid-to-high $80s and a high case of $110.80, while 24.45% short interest adds squeeze potential. The long call structure limits downside to premium while preserving asymmetric upside tied to AI-driven power demand re-rating.
Previously, we covered a bullish thesis on Solaris Energy Infrastructure, Inc. (SEI) by LiterallyAzzmilk in March 2025, which highlighted strong financial performance, acquisitions, and positioning in distributed power markets. SEI’s stock price has appreciated by approximately 228.94% since our coverage. OppCost shares a similar view but emphasizes AI data center-driven power demand, multi-gigawatt contracted backlog, and asymmetric upside into 2027.
Solaris Energy Infrastructure, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 57 hedge fund portfolios held SEI at the end of the first quarter which was 65 in the previous quarter. While we acknowledge the risk and potential of SEI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SEI and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
