The Shocking Energy Supplier That’s Outperforming Nvidia (S&P 500’s biggest winner of 2024)

Finally we can all stop talking about Nvidia because there’s a new hot stock taking over SuperStonks, and it’s about as unexpected as finding out your grandma has a TikTok account. Vistra, a Texas-based utility company, has quietly transformed into everyone’s favorite ticker. Yes, a utility company. The same kind of company you normally associate with boring bills and power outages is now the S&P 500’s biggest winner of 2024. Guess reliable energy is the real power move in this market.

Vistra isn’t your typical “let’s just keep the lights on and hope no one notices” kind of utility company. Nope, they’re playing chess while the rest of the industry is still trying to figure out checkers. While most utilities are busy clinging to natural gas and coal like it’s still 1995, Vistra went nuclear. Literally. They just locked in approval to keep their Comanche Peak Nuclear Power Plant running until 2053 (yep, the next 30 years).

And here’s where it gets really interesting: Vistra’s pivot to nuclear power couldn’t have come at a better time. With AI taking over the world (and our Twitter feeds), the demand for electricity is through the roof—up 2.5% just in the past year after being flat for nearly 15 years.

Nuclear energy is now the perfect match for those skyrocketing demands, providing about 20% of the U.S. electricity supply. It’s almost like Vistra had some insider info that AI was about to takeover the world and planned ahead.

Now, let’s talk numbers because Vistra’s stock performance has been wild. We’re talking a 321% jump over the past year, and it’s up 248% just this year. It’s even outperforming Nvidia as the top S&P 500 stock in 2024.

That’s because while Nvidia’s supplying the world with AI chips, Vistra’s the one making sure there’s enough power to keep those AI systems running. AI needs power—lots of it. In fact, those massive data centers fueling AI breakthroughs can consume upwards of 50 megawatts each. That’s the equivalent of powering around 37,000 homes.

Okay, so Vistra’s stock is flying, but is now a good time to jump on the train? I know what you’re thinking—up 321%, there’s no way it’s still a buy, right? Well, actually… maybe it is. Even with that crazy growth, Vistra’s forward P/E ratio is sitting at 19.2. For reference, the S&P 500 average is around 23. So, despite the sky-high gains, the stock might still be undervalued, especially considering AI’s energy demands are only going up from here.

And Wall Street isn’t cooling down on Vistra anytime soon. Analysts over at Jefferies have even named Vistra their top pick in the power sector.

P.S. Yesterday’s surprise alert was sitting at a 53% gain at the market close. Click here and become a premium member to make sure you don't miss out on the next one.

Stocks.News has positions in Vistra and Nvidia.