We recently published Trending Analyst Calls: 10 Stocks to Buy and Sell. Vistra Corp. (NYSE:VST) is one of the trending analyst calls.
Doug Clinton, Deepwater Asset Management, said in a recent program on CNBC that he’d owned Vistra Corp (NYSE:VST) in the past, but now he’s concerned about the stock’s valuation. The analyst recommended investors to prefer AI hardware and software stocks instead of AI energy plays.
“We have owned some of those names particularly Vistra Corp (NYSE:VST) and GE Vernova in the past. We don’t right now. And the concern I have is, you know, everybody’s talking about AI bubble kind of where are we? Are we near the top? For what it’s worth, I think we’re probably in 1997 in the AI trade right now, but I think there are components of the trade and things that are kind of on the periphery, particularly around nuclear and some of the energy plays and then also quantum that feels more like we’re in 1999. And so the energy stuff as important as it is and as topical as it is, is kind of the bottleneck to some of these data center buildouts that we have right now. I do think a lot of that seems to be priced in the stocks and I would rather own the hardware and the software players than energy right.”
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Carillon Eagle Mid Cap Growth Fund stated the following regarding Vistra Corp. (NYSE:VST) in its second quarter 2025 investor letter:
“Vistra Corp. (NYSE:VST) is an integrated electricity and power generation company. As a result of increasing forecasts for future power demand growth, largely brought on by the rapid growth of artificial intelligence, the company’s shares have continued to climb on investors’ expectations for future power prices. A tailwind for the stock has been Vistra’s potential to announce future power purchase agreements (PPAs) with large technology companies to satisfy the outsized power requirements of their artificial intelligence endeavors.”
While we acknowledge the potential of VST as an investment, 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 extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.