AI Is Reshuffling Utilities Stocks. Entergy, NiSource, and Others Could Be Winners.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 26 2024
0mins
Should l Buy ETR?
Source: Barron's
Utility Stocks Performance: Utility stocks have surged by 20% in 2024, driven by the demand for electricity from AI data centers, with companies like Entergy and NiSource positioned to benefit significantly from this trend.
Investment Opportunities: Analysts are optimistic about utilities' potential for growth alongside their traditional role as safe investments, highlighting firms that can secure deals with tech giants as key players in the evolving market landscape.
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Analyst Views on ETR
Wall Street analysts forecast ETR stock price to fall
15 Analyst Rating
11 Buy
4 Hold
0 Sell
Moderate Buy
Current: 105.810
Low
86.00
Averages
103.87
High
115.00
Current: 105.810
Low
86.00
Averages
103.87
High
115.00
About ETR
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. The Company operates primarily through a single segment, Utility. The Utility segment includes the generation, transmission, distribution, and sale of electric power in portions of Arkansas, Mississippi, Texas, and Louisiana, including the City of New Orleans. The Utility segment includes five retail electric utility subsidiaries: Entergy Arkansas, LLC, Entergy Louisiana, LLC, Entergy Mississippi, LLC, Entergy New Orleans, LLC, and Entergy Texas, Inc. These companies generate, transmit, distribute, and sell electric power to retail and wholesale customers in Arkansas, Louisiana, Mississippi, and Texas. The Company owns and operates power plants with approximately 25,000 MW of electric generating capacity. It delivers electricity to approximately three million utility customers in Arkansas, Louisiana, Mississippi, and Texas.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Growing Power Demand: NextEra Energy plans to build 15 gigawatts of new power capacity to meet data center demands, indicating a shift towards gas generation while emphasizing renewable energy, reflecting changing policy directions.
- Market Dynamics: With accelerated data center construction, the U.S. is expected to face a net negative power supply by 2029, tightening the electricity market and boosting market share for independent power producers.
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See More
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- Capital Expenditure Plans: Amazon anticipates a capital expenditure of $200 billion this year, surpassing other major tech companies, although Wall Street remains skeptical, leading to a market value loss of over $450 billion following its earnings report.
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See More
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- Nuclear Energy Focus: With support from the Trump administration, the EDF is prioritizing nuclear projects, planning to back up to 80% of project costs, aiming to quadruple U.S. nuclear capacity by 2050 to address challenges posed by climate change and rising electricity demand.
- Breaking China's Mineral Dominance: The EDF will focus on supporting projects that disrupt China's dominance in critical mineral supply chains, with Beard indicating a commitment to intervene and back initiatives that can interrupt China's strategic plans, thereby ensuring U.S. self-sufficiency in essential materials and enhancing national security.
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