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Southern Company (SO) Price Target Raised by TD Cowen on Financing and Demand Outlook

The Southern Company (NYSE:SO) is included among the 14 Stocks on the Verge of Becoming Dividend Aristocrats.

On March 6, Shelby Tucker of TD Cowen raised the firm’s price objective on The Southern Company (NYSE:SO) to $112 from $108. It maintained a Buy rating on the shares. The firm said the company’s loan guarantee from the U.S. Department of Energy represents both a financing win and political support for its strategy that “growth drives affordability.” According to the analyst, the company argues that large increases in electricity demand can benefit customers. Minimum bill contracts help cover system costs and ease pressure on electricity rates. With affordability concerns appearing less central for now, the firm believes the company may deserve a higher valuation premium.

On February 26, Reuters reported that the U.S. Department of Energy offered a $26.54 billion loan to subsidiaries of Southern Company to improve power grid reliability. The financing marks the largest loan ever issued by the department’s loan office. The funding is expected to help customers in Georgia and Alabama save more than $7 billion. Part of those savings comes from the company’s commitment to freeze electricity rates for three years.

The loans to Georgia Power and Alabama Power will support more than 16 gigawatts of new and upgraded power capacity. Projects tied to the funding include natural gas generation, upgrades at nuclear facilities, modernization of hydropower assets, energy storage development, and more than 1,300 miles of transmission improvements.

The Southern Company (NYSE:SO) is an energy provider with several operating subsidiaries. The company owns three traditional electric utilities, along with Southern Power Company and Southern Company Gas. These utilities provide electricity to retail customers across the Southeast and also serve wholesale customers in the region.

While we acknowledge the potential of SO to grow, 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 AI stock that is more promising than SO and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 40 Most Popular Stocks Among Hedge Funds Heading into 2026 and 13 Best REIT Dividend Stocks to Invest in

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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Wall Street calls this $3 stock a “Melting Ice Cube.” They said the same thing about BTI before it returned 90%.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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We looked under the cover and realized they were wrong.

We alerted our subscribers, and BTI returned 90% in just 16 months.

Now if you had invested just $10,000 in BTI in June 2024, you’d be sitting on $19,000 in October 2025.

Today, we have identified a nearly identical pattern in a digital-first giant trading at $3.

While the market panics over a surface-level revenue decline, our PhD-led research shows management has actually surgically cut $100 million in waste to focus on high-margin growth.

This pattern is a hallmark of our 16.5% annual return track record. The current opportunity offers a 400% upside potential—dwarfing even our 90% BTI return.

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