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Stem, Inc. (STEM) Expands AI-Enabled Clean Energy Solutions with Mercuria Energy Trading

We recently published a list of 10 AI News Taking Wall Street By Storm. In this article, we are going to take a look at where Stem, Inc. (NYSE:STEM) stands against other AI news taking Wall Street by storm.

Even though there is a looming threat of future curbs, some Asian hedge funds are betting big on Chinese tech companies, according to Reuters. Companies such as Xiaomi and Baidu are increasingly favored due to their innovations in artificial intelligence. Global investors may have been holding back because of the US’s ban on advanced chip exports. Yet, many others are optimistic about the opportunities in Chinese firms and the AI products that they are developing. Their valuations are lower than their US peers, and their large language models have been demonstrating rapid advancements.

READ ALSO: Top 12 AI Stock News and Ratings Dominating Wall Street and 10 AI Stocks Taking Wall Street by Storm 

Even industry insiders and technology analysts have told CNBC that Chinese AI models are gaining popularity. Many are keeping pace with, and even surpassing in performance, than those in the US. As such, artificial intelligence has become the “latest battleground” for China and the US. The US has been tightening its restrictions on China’s access to advanced chips used in AI because of national concerns. As a result, China has been focusing on carving its own path for boosting the appeal and performance of its AI models.

This includes relying on open-source technology and developing their own super-fast software and chips. Chinese companies are developing open-source, or open-weight, LLMs. Developers can download them and build on top of them for free without having to obtain stringent licensing requirements from the inventor.

“In the last year, we’ve seen the rise of open source Chinese contributions to AI with really strong performance, low cost to serve and high throughput”.

-Grace Isford, a partner at Lux Capital, told CNBC.

In the latest innovations in artificial intelligence technology, China’s leading search engine company Baidu has launched a text-to-image generation tool for its ad clients. The company also plans to release AI glasses early next year as well as inaugurate its robotaxi service outside mainland China. Timothy Wang, chief investment officer at Monolith, predicts China’s homegrown AI-powered products and services are poised to grow in the coming year.

Hedge fund manager Sean Ho, CIO of Triata Capital which manages $770 million in assets, said about Chinese advancements in AI:

“We are seeing breakthroughs in AI software, such as text-to-video generation and multimodal AI…The high rankings of Chinese AI models on open-source platforms like Hugging Face reflect their ambition to lead globally, a trend that is unlikely to be derailed by ongoing tech conflicts”.

For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.

Why are we interested in 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

A technician in a lab coat standing in a cleanroom with energy storage systems in the background.

Stem, Inc. (NYSE:STEM)

Stem, Inc. (NYSE:STEM) is a global leader in artificial intelligence (AI)-enabled clean energy software and services. On December 17, the company announced that Mercuria Energy Trading, a leading global energy trader, is now using its AI-enabled PowerBidder™ Pro. The PowerBidder™ Pro is an advanced software platform designed to optimize the management and operation of clean energy assets. The move will allow Mercuria to support bidding management and optimization of a second clean energy in Texas within the Electric Reliability Council of Texas (ERCOT). The software was deployed in under 60 days, allowing Mercuria’s trading teams to take control of the asset. This is the second Mercuria asset being supported by Stem’s software since Q3 2024, which signifies Stem’s success through its advanced software solutions.

“Participants in today’s highly complex wholesale power markets need trusted, proven partners with solutions that deliver high levels of performance, flexibility, and control. Regardless of a customer’s return objectives, risk appetite, and energy trading capabilities, Stem’s PowerBidder Pro empowers them with fully configurable strategies in automated or manual bidding mode, accompanied by analytics and insights that inform future decisions. Stem is proud of the proven value we have already delivered to Mercuria and of our growing partnership as a result. We look forward to continuing profitable growth in ERCOT”.

-Cedric Brehaut, Senior Vice President of Product at Stem.

Overall, STEM ranks 10th on our list of AI news taking Wall Street by storm. While we acknowledge the potential of STEM 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 STEM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

Disclosure: None. This article is originally published at Insider Monkey.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

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A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…