Jim Cramer Says Stay Away from Vistra (VST)- ‘I Never Really Care About Energy Trade’

Jim Cramer was recently asked about Vistra Corp (NYSE:VST) during the Lightning Round segment of his program. Here is what he said:

“I never really, really care right now, honestly, for the energy trade because then Microsoft will say that it’s closing a data center, no one will like the group. So let’s stay away from the energy trade. It’s too much second derivative, so to speak.”

River Road Small-Mid Cap Value Fund stated the following regarding Vistra Corp. (NYSE:VST) in its Q4 2024 investor letter:

“Another positive contributor was Vistra Corp. (NYSE:VST), an independent producer and retailer of electricity, and the second-largest owner of nuclear power assets in the United States. Like Talen (see writeup above), Vistra benefited from the record auction clearing price this past July at PJM. In August, VST released 2026 EBITDA guidance of at least $6B, which is 50% higher than 2023 results. Near the end of the quarter, nuclear peer Constellation Energy announced a power purchase agreement (PPA) with Microsoft® at its decommissioned Three Mile Island nuclear plant. The news sparked a rally in nuclear power plant owners as the indicated market price for the PPA was above $100/MWh and further confirms the strength of demand for reliable and clean baseload generation. VST’s entire nuclear fleet is fully operational and encompasses six GW across Texas and Ohio. The market anticipates a similar deal could be around the corner as the stock’s multiple continued to expand. We trimmed the position as the stock approached our assessed value.”

While we acknowledge the potential of VST 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 extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term 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.