We recently published a list of 12 Best Energy Stocks to Invest in According to Billionaires. In this article, we are going to take a look at where Vistra Corp. (NYSE:VST) stands against other best energy stocks to invest in according to billionaires.
After significantly lagging behind in 2024, the broader energy sector finally seems to be doing better now with gains of 6.21% since the beginning of 2025, against a decline of 3.42% by the wider market during the period.
READ ALSO: 12 Best Nuclear Power Stocks To Buy Now
The ongoing artificial intelligence boom is a significant growth driver for the energy industry, as its accompanying data centers consume 10 to 50 times the amount of energy per square foot of a typical commercial office building. According to the Department of Energy, the energy use by America’s data centers could reach between 74 and 132 gigawatts by 2028, or 6.7% to 12% of the total electricity consumption in the country. A large number of power companies are already ramping up their capacity to meet this growing power demand. It is forecasted that US electricity demand will grow 55% over the next 20 years, six times faster than the 9% growth witnessed over the past two decades.
According to energy data provider Enverus, a total of 80 new gas power plants could be constructed in America by the end of the decade to meet this growing demand. However, the price of natural gas has surged by over 140% over the last year and the costs for gas power plants have also soared in the last 18 months. If the US concentrates only on gas, it will become even more expensive, forcing up bills for consumers and businesses.
Nuclear energy has also received a massive boost in recent years, largely driven by its widespread recognition of its role in the global ‘clean energy transition’. The International Energy Agency recently revealed that nuclear is set to generate a record level of electricity this year. There are more than 70 gigawatts of new nuclear capacity under construction around the world, one of the highest levels in the last 30 years. Moreover, on the sidelines of the CERAWeek conference earlier this month, several major corporations have signed a pledge to support the goal of at least tripling the world’s nuclear energy capacity by 2050.
Despite the best efforts by the incumbent Trump administration to hamper its progress, the clean-energy industry is on pace for record growth this year. According to the US Energy Information Administration, the share of new power capacity that is expected to come online this year from renewables and batteries will jump to 93%.
The promising future prospects of the energy industry can also be reaffirmed by the growing interest of billionaire investors, who have significantly raised their stakes in the sector. Even Warren Buffett’s Berkshire Hathaway acquired an additional 763,017 shares of an oil and gas giant in Q4 2024, despite the ongoing issues faced by the industry. But while Buffett’s portfolio leans heavily on oil and gas, Berkshire Hathaway Energy operates one of the largest renewable energy portfolios in the US and has invested over $40 billion in wind, solar, and hydroelectric projects.
With that said, here are the Billionaires’ Favorite Energy Stocks to Buy Now.
Solar panel workers installing a new farm for clean energy generation.
Methodology:
To collect data for this article, we scanned Insider Monkey’s database of billionaires’ stock holdings and picked the top 12 companies operating in the energy sector with the highest number of billionaire investors in Q4 of 2024. When two or more companies had the same number of billionaires backing them, we ranked them by the revenue of their last financial year. Following are the Best Energy Stocks According to Billionaires.
At Insider Monkey we are obsessed with 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Vistra Corp. (NYSE:VST)
Number of Billionaire Holders: 25
Topping our list of the Best Energy Stocks to Buy Now is Vistra Corp. (NYSE:VST), a leading Fortune 500 integrated retail electricity and power generation company based in Texas. Vistra is the largest competitive power generator in the US with a capacity of approximately 41 gigawatts.
Vistra Corp. (NYSE:VST) had a strong Q4 2024 as its revenue grew 31.16% YoY to just over $4 billion in Q4 2024, beating market estimates by $124 million. Meanwhile, its EPS of $2.41 was in line with expectations. The company maintains a robust balance sheet, generating an operating cash flow of over $4.56 billion in 2024 and ending the year with $1.2 billion in cash on hand. Vistra has committed to a minimum of $2.25 billion in share buybacks through 2025, with an additional $1 billion targeted.
A number of high-profile investors hold a position in Vistra Corp. (NYSE:VST), including the Democrat Nancy Pelosi. Pelosi recently purchased 50 Vistra call options with a strike price of $50 that expire in January 2026, which, given her track record in well-timed investments, signals strong conviction.
Meridian Funds stated the following regarding Vistra Corp. (NYSE:VST) in its Q4 2024 investor letter:
“Vistra Corp. (NYSE:VST) is an integrated retail and power generation company with operations across the U.S., primarily serving Texas and the Midwest. We believe Vistra is well-positioned to capitalize on the structural tightening of power markets, as electricity demand accelerates, and baseload generation capacity continues to retire. This trend has been amplified by the rapid growth of AI, which is driving unprecedented demand for data centers and the power required to run them. These factors create a favorable pricing environment for Vistra’s generation fleet, especially its nuclear and gas assets. The company has locked in much of this value via hedging, providing clear visibility into future cash flows. Vistra has also successfully grown its retail business and completed a strategic acquisition of Energy Harbor, which added a portfolio of nuclear, retail, and renewable assets.”
Overall, VST ranks 1st on our list of the best energy stocks to invest in according to billionaires. While we acknowledge the potential for VST, 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 VST but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires
Disclosure: None. This article is originally published at Insider Monkey.