NextEra Energy (NEE): One of the Best Defensive Stocks Right Now

We just covered the 14 Best Defensive Stocks to Invest In Now and NextEra Energy, Inc. (NYSE:NEE) ranks 13th on this list.

The defensive strength of NextEra Energy, Inc. (NYSE:NEE) comes from its unique structure, which balances low-risk regulated income with high-growth infrastructure. Florida Power & Light, a subsidiary of the firm, is the safe half of the business. As the largest regulated utility in the US, it provides essential electricity to millions of Florida residents. Because its rates are regulated and its market is a monopoly, its cash flow is incredibly predictable and decoupled from the broader economy. Meanwhile, NextEra Energy Resources, another subsidiary, is the growth half. It is the global leader in wind and solar energy. By signing 20-year Power Purchase Agreements with blue-chip companies and other utilities, it locks in decades of guaranteed revenue, providing a defensive moat that most companies lack.

READ ALSO: 15 Best Stocks to Buy According to Billionaire Seth Klarman.

GE Vernova (GEV) Stock Soars on AI Energy Boom—UBS Targets $614

Over the past few months, a new defensive catalyst has emerged: the massive electricity demand from AI data centers. Analysts at Bank of America and Morgan Stanley highlighted earlier this month that data centers are projected to drive a 12% compound annual growth rate (CAGR) in power consumption through 2035. As a leader in both renewable generation and battery storage, NextEra Energy, Inc. (NYSE:NEE) is the preferred partner for hyperscalers like Google and Microsoft who need massive, green, and reliable power. This has turned a traditional utility into a critical infrastructure play for the AI revolution.

While we acknowledge the risk and potential of NEE 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 NEE and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXTIsrael Englander Stock Portfolio: Top 10 Stock Picks and Billionaire Stan Druckenmiller’s 10 Small and Mid-Cap Stock Picks with Huge Upside Potential.

Disclosure: None. Follow Insider Monkey on Google News.