We just covered the Top 10 Stock Picks of 10 Famous Billionaires. Vistra (NYSE:VST) ranks #5 (see Top 5 Stock Picks of 5 Famous Billionaires).
Number of Hedge Funds: 106
Top Pick Of: Stephen Mandel — Lone Pine Capital
Vistra (NYSE:VST) is another AI stock billionaires can not get enough of. As demand for AI data centers grows, so does the need for power. Vistra is a power producer sitting right in the middle of that trend.
The company expects electricity demand in ERCOT, the grid covering most of Texas, to grow 5% to 6%. In PJM, the largest wholesale electricity market in the U.S., it expects growth of 2% to 3%. Both figures are well above historical norms.
It has a total generation capacity of about 44 GW. Roughly 62% comes from natural gas, about 15% from nuclear, and the rest from coal and renewables. Its nuclear fleet is the second largest in the U.S.
Companies are lining up to lock in long-term supply. Meta signed a roughly 2.6 GW, 20-year nuclear power purchase agreement with Vistra. Amazon signed a roughly 1.2 GW, 20-year nuclear PPA as well.
Another key differentiator is bridge power. Vistra uses gas-fired plants located near data centers to supply temporary electricity when grid connections are delayed. That allows data centers to come online faster and makes Vistra more flexible than traditional utilities that rely on slower grid infrastructure.
Brown Advisory Mid-Cap Growth Strategy stated the following regarding Vistra Corp. (NYSE:VST) in its fourth quarter 2025 investor letter:
“Vistra Corp. (NYSE:VST): Operates as a retail electricity and power generation company. Vistra (VST) benefited from rising power demand in Texas, increased interest from data center customers in directly sourcing generation, and growing investor appreciation for nuclear assets. During the year, the company signed a large power purchase agreement with a major hyperscaler for its Comanche Peak nuclear facility in Texas, and we see the potential for additional large deals in the future (Click Here to Read the Letter in Detail).”
While we acknowledge the risk and potential of VST 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 VST and that has 10,000% upside potential, check out our report about the cheapest AI stock.
READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy.
Disclosure: None. Follow Insider Monkey on Google News.
