This stock literally powering AI is setting up for a run to record levels, according to the charts

Todd Gordon of Inside Edge Capital is increasing his position in Vistra Corp (VST) in his "fast money" account, citing Vistra's pivotal role in supporting the AI technology buildout through its power generation assets, including nuclear plants acquired from Energy Harbor. Gordon notes that power generation and equipment suppliers are trading higher following Meta's nuclear power deal, and he plans to increase his VST holdings to approximately 5% if the stock closes above $180, targeting a test of all-time highs near $200.

Analysis

Vistra Corp (VST) is strategically positioning itself as a key beneficiary of the escalating energy demands driven by the artificial intelligence buildout. The company, an integrated power generation and retail electricity provider, expanded its nuclear capacity by acquiring Energy Harbor for $3.4 billion in 2024, adding four nuclear power plants, which complements its existing investments in natural gas and solar facilities that have facilitated power purchase agreements with Amazon and Microsoft. While Vistra has demonstrated consistent revenue growth since 2021 and aggressive GAAP EPS expansion historically, analysts project an 11.79% GAAP EPS contraction for the current year; conversely, non-GAAP EPS figures from S&P Global Capital IQ show significant growth: 378% in 2022, followed by 88%, 54%, and an anticipated 43%. The recent Meta Platforms-Constellation Energy nuclear power agreement has catalyzed positive sentiment for power generation suppliers like VST, which gapped up into a resistance zone of $172-$177. The article's author, holding VST, plans to increase their position to approximately 5% upon a daily close above $180, targeting all-time highs near $200, with $165 as a risk containment level, reflecting a bullish outlook on the stock's technicals and fundamentals tied to AI energy needs.

Key Decisions for Investors

• Investors could consider Vistra Corp (VST) for its strategic alignment with the increasing energy requirements of the AI sector, supported by its expanded nuclear capacity and power purchase agreements with major tech companies.
• Tactical traders might monitor VST for a daily close above the $180 resistance as a potential entry, using the $165 level for risk management, in anticipation of a move towards its all-time highs near $200.
• A thorough due diligence should include an investigation into the projected 11.79% GAAP EPS contraction for the current year, contrasting it with reported strong non-GAAP EPS growth, to fully understand Vistra's underlying profitability.
• The broader power generation sector warrants attention, as indicated by the positive market reaction to AI-related energy deals, potentially offering similar investment opportunities linked to increasing data center power demands.