3 Energy Stocks to Consider Amid Rising AI Power Demand—and 2 to Steer Clear Of
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 05 2026
0mins
Source: Marketbeat
CERAWeek Conference: The CERAWeek conference in Houston, Texas, brings together major players in energy and technology to discuss global energy markets, geopolitics, and the increasing demand for electricity, highlighting the U.S.'s dependence on electricity and the challenges posed by AI-driven infrastructure needs.
Electricity Demand Trends: U.S. electricity demand is outpacing grid capacity, with significant increases in power consumption driven by industrialization, data centers, and AI computing, creating investment opportunities and potential pitfalls in infrastructure development.
Market Dynamics: Companies like MasTec, Regal Rexnord, and EQT are positioned to capitalize on the growing demand for energy and AI infrastructure, despite facing challenges such as high capital expenditures and fluctuating market conditions.
Investment Insights: Analysts suggest that while some companies are experiencing negative profit margins, others with strong backlogs and proven demand are well-positioned for growth, emphasizing the importance of understanding market dynamics and investment opportunities in the evolving energy landscape.
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Analyst Views on CRWV
Wall Street analysts forecast CRWV stock price to rise
25 Analyst Rating
12 Buy
13 Hold
0 Sell
Moderate Buy
Current: 116.850
Low
68.00
Averages
123.23
High
180.00
Current: 116.850
Low
68.00
Averages
123.23
High
180.00
About CRWV
CoreWeave, Inc. is a cloud infrastructure technology company. The Company offers the CoreWeave Cloud Platform, which consists of software and cloud services that deliver the automation and efficiency needed to manage complex artificial intelligence (AI) infrastructure. Its CoreWeave Cloud Platform is an integrated solution that is purpose-built for running AI workloads such as model training and inference. Its solutions include infrastructure services, managed software services, and application software services. Its Infrastructure Services provide its customers with access to advanced graphics processing unit (GPU) and central processing unit (CPU) compute, highly performant networking, and storage. Its Managed Software Services include CKS, a flexible virtual private cloud and a bare metal service that runs kubernetes directly on high-performance servers. Its Application Software Services build on top of its infrastructure and managed software services, integrating additional tools.
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.
Investment Strategy Analysis for AI Stocks
- Alphabet Investment Opportunity: Investing about $4,000 to buy 12 shares of Alphabet (GOOGL) positions investors in a leading AI company, with projected 2025 revenues of $403 billion reflecting a 15% annual growth rate and a net income of $132 billion, which is a 32% increase from last year, indicating strong market potential.
- AMD Growth Potential: Allocating approximately $4,100 to purchase 16 shares of Advanced Micro Devices (AMD) allows investors to tap into a company expected to generate $35 billion in revenue by 2025, a 34% increase, with net income rising to $4.3 billion, showcasing its competitive edge in the AI chip market and diversified business model.
- CoreWeave Risks and Opportunities: Investing $1,900 in CoreWeave (CRWV) presents a speculative opportunity, as the company faces $21.4 billion in debt but has a backlog of $66.8 billion, with analysts forecasting a 142% revenue growth in 2026, highlighting its potential in the AI cloud services market despite financial risks.
- Portfolio Allocation Strategy: The recommended investment strategy involves allocating $10,000 across three AI stocks, with 40% in a large established company (Alphabet), 40% in a rapidly growing company (AMD), and 20% in a promising speculative stock (CoreWeave), aiming to balance risk and return effectively.
See More
Alphabet and AMD Compete in AI Market
- Alphabet's Market Leadership: Alphabet's continuous innovation in AI has led to $403 billion in revenue for 2025, a 15% increase year-over-year, with net income reaching $132 billion, showcasing its strong capabilities and market influence in AI technology applications.
- AMD's Growth Potential: AMD achieved $35 billion in revenue in 2025, a 34% increase, and is projected to see 60% annual growth in its data center business over the next three to five years; despite a P/E ratio of 97, rapid profit growth has lowered the forward P/E to 38, attracting investor interest.
- CoreWeave's Risks and Opportunities: CoreWeave generated $5.1 billion in revenue in 2025, a 168% increase, but faces a debt burden of $21.4 billion; nevertheless, analysts forecast a 142% revenue growth in 2026, indicating significant potential in AI workload cloud environments.
- Investment Strategy Recommendation: When investing in AI stocks, it is advisable to allocate funds among a large established company (like Alphabet), a rapidly growing company (like AMD), and a speculative stock (like CoreWeave) to achieve risk diversification and maximize returns.
See More
Middle East Peace Prospects Boost Tech Stocks
- Investor Sentiment Recovery: As peace talks between the U.S. and Iran progress, investor fears regarding the Middle East diminish, leading to a renewed focus on growth stocks, particularly in artificial intelligence, which boosts related tech stock performance.
- Credo Acquisition Expansion: Credo's agreement to acquire DustPhotonics is expected to elevate its optical revenue to over $500 million by fiscal 2027, further solidifying its market position in AI data centers.
- Oracle Partnership Expansion: Oracle's partnership with Bloom Energy has expanded to include a 1.2 GW fuel cell contract, which is anticipated to enhance energy efficiency in its cloud data centers, while its multicloud database revenue surged by 531% in the quarter ending February 28.
- CoreWeave Major Deal Signing: CoreWeave's $21 billion agreement with Meta Platforms for AI cloud computing capacity through December 2032 has led analysts to raise their stock price forecasts, contributing to a rise in CoreWeave's stock price.
See More
Oil Prices Drop as Tech Stocks Surge Amid Peace Talks
- Oil Price Decline: Oil prices fell this week as peace talks between the U.S. and Iran progressed, alleviating investor fears of a recession driven by Middle Eastern events, which shifted focus back to investable trends like artificial intelligence.
- Credo Technology Expansion: Credo Technology's agreement to acquire DustPhotonics is expected to boost its optical revenue to over $500 million by fiscal 2027, significantly enhancing its market position in AI data centers.
- Oracle Cloud Growth: Oracle's partnership with Bloom Energy for a 1.2GW fuel cell contract will power its cloud data centers, while collaboration with Amazon Web Services aims to enhance cross-cloud solutions, with multicloud database revenue soaring 531% year-over-year.
- CoreWeave Major Deals: CoreWeave's $21 billion agreement with Meta Platforms for AI cloud computing capacity and a multi-year deal with Anthropic have led analysts to raise price forecasts for its shares, contributing to a rise in stock value.
See More
Market Dynamics: The Tug-of-War Between Bonds and Oil Prices
- Bond Market Stability: The slight decline in bond yields indicates a stable market outlook, which helps support the stock market, particularly amid oil price fluctuations, thereby reducing investor panic.
- Tech Stock Recovery: The so-called 'Magnificent Seven' tech companies, including Alphabet and Amazon, are beginning to reap benefits from their previous high expenditures, enhancing market confidence in their future profitability, which could drive further market gains.
- Rise of the AI Economy: The emergence of AI agents is expected to significantly reduce hiring and operational costs for enterprises, driving demand for chips like Nvidia's, which will further boost growth for related companies.
- Improved Investor Sentiment: Despite ongoing market uncertainties, the combination of low bond yields and strong performance from tech stocks fosters an optimistic outlook among investors, potentially attracting more capital into the stock market.
See More
Wall Street's Top Three AI Stock Picks
- Lumentum's Positive Outlook: JPMorgan analyst Chatterjee raised Lumentum's price target from $565 to $950, anticipating earnings per share of $24 by 2027, reflecting strong confidence in future demand driven by surging needs for optical networking and related components.
- Broadcom's Partnership Boosts Confidence: Benchmark analyst Acree reiterated a buy rating on Broadcom with a price target of $485, as the multi-year deal with Meta is expected to propel AI chip revenues beyond $100 billion, further solidifying its leadership in the AI accelerator market.
- Dell's Market Share Growth: Mizuho analyst Rakesh increased Dell's price target from $180 to $215, forecasting server orders of $53 billion and $68 billion for 2027 and 2028, respectively, benefiting from rising AI server demand and market disruptions affecting competitor Super Micro.
- Investment in AI Infrastructure Rising: Analysts project cloud service providers' capital expenditures to reach $689 billion in 2026, reflecting a 64% year-over-year growth, which will drive Dell's market share in AI servers from 19% in 2025 to 25% by 2029, indicating strong growth potential in this sector.
See More
Investment Strategy Analysis for AI Stocks
- Alphabet Investment Opportunity: Investing about $4,000 to buy 12 shares of Alphabet (GOOGL) positions investors in a leading AI company, with projected 2025 revenues of $403 billion reflecting a 15% annual growth rate and a net income of $132 billion, which is a 32% increase from last year, indicating strong market potential.
- AMD Growth Potential: Allocating approximately $4,100 to purchase 16 shares of Advanced Micro Devices (AMD) allows investors to tap into a company expected to generate $35 billion in revenue by 2025, a 34% increase, with net income rising to $4.3 billion, showcasing its competitive edge in the AI chip market and diversified business model.
- CoreWeave Risks and Opportunities: Investing $1,900 in CoreWeave (CRWV) presents a speculative opportunity, as the company faces $21.4 billion in debt but has a backlog of $66.8 billion, with analysts forecasting a 142% revenue growth in 2026, highlighting its potential in the AI cloud services market despite financial risks.
- Portfolio Allocation Strategy: The recommended investment strategy involves allocating $10,000 across three AI stocks, with 40% in a large established company (Alphabet), 40% in a rapidly growing company (AMD), and 20% in a promising speculative stock (CoreWeave), aiming to balance risk and return effectively.
See More
Alphabet and AMD Compete in AI Market
- Alphabet's Market Leadership: Alphabet's continuous innovation in AI has led to $403 billion in revenue for 2025, a 15% increase year-over-year, with net income reaching $132 billion, showcasing its strong capabilities and market influence in AI technology applications.
- AMD's Growth Potential: AMD achieved $35 billion in revenue in 2025, a 34% increase, and is projected to see 60% annual growth in its data center business over the next three to five years; despite a P/E ratio of 97, rapid profit growth has lowered the forward P/E to 38, attracting investor interest.
- CoreWeave's Risks and Opportunities: CoreWeave generated $5.1 billion in revenue in 2025, a 168% increase, but faces a debt burden of $21.4 billion; nevertheless, analysts forecast a 142% revenue growth in 2026, indicating significant potential in AI workload cloud environments.
- Investment Strategy Recommendation: When investing in AI stocks, it is advisable to allocate funds among a large established company (like Alphabet), a rapidly growing company (like AMD), and a speculative stock (like CoreWeave) to achieve risk diversification and maximize returns.
See More
Middle East Peace Prospects Boost Tech Stocks
- Investor Sentiment Recovery: As peace talks between the U.S. and Iran progress, investor fears regarding the Middle East diminish, leading to a renewed focus on growth stocks, particularly in artificial intelligence, which boosts related tech stock performance.
- Credo Acquisition Expansion: Credo's agreement to acquire DustPhotonics is expected to elevate its optical revenue to over $500 million by fiscal 2027, further solidifying its market position in AI data centers.
- Oracle Partnership Expansion: Oracle's partnership with Bloom Energy has expanded to include a 1.2 GW fuel cell contract, which is anticipated to enhance energy efficiency in its cloud data centers, while its multicloud database revenue surged by 531% in the quarter ending February 28.
- CoreWeave Major Deal Signing: CoreWeave's $21 billion agreement with Meta Platforms for AI cloud computing capacity through December 2032 has led analysts to raise their stock price forecasts, contributing to a rise in CoreWeave's stock price.
See More
Oil Prices Drop as Tech Stocks Surge Amid Peace Talks
- Oil Price Decline: Oil prices fell this week as peace talks between the U.S. and Iran progressed, alleviating investor fears of a recession driven by Middle Eastern events, which shifted focus back to investable trends like artificial intelligence.
- Credo Technology Expansion: Credo Technology's agreement to acquire DustPhotonics is expected to boost its optical revenue to over $500 million by fiscal 2027, significantly enhancing its market position in AI data centers.
- Oracle Cloud Growth: Oracle's partnership with Bloom Energy for a 1.2GW fuel cell contract will power its cloud data centers, while collaboration with Amazon Web Services aims to enhance cross-cloud solutions, with multicloud database revenue soaring 531% year-over-year.
- CoreWeave Major Deals: CoreWeave's $21 billion agreement with Meta Platforms for AI cloud computing capacity and a multi-year deal with Anthropic have led analysts to raise price forecasts for its shares, contributing to a rise in stock value.
See More
Market Dynamics: The Tug-of-War Between Bonds and Oil Prices
- Bond Market Stability: The slight decline in bond yields indicates a stable market outlook, which helps support the stock market, particularly amid oil price fluctuations, thereby reducing investor panic.
- Tech Stock Recovery: The so-called 'Magnificent Seven' tech companies, including Alphabet and Amazon, are beginning to reap benefits from their previous high expenditures, enhancing market confidence in their future profitability, which could drive further market gains.
- Rise of the AI Economy: The emergence of AI agents is expected to significantly reduce hiring and operational costs for enterprises, driving demand for chips like Nvidia's, which will further boost growth for related companies.
- Improved Investor Sentiment: Despite ongoing market uncertainties, the combination of low bond yields and strong performance from tech stocks fosters an optimistic outlook among investors, potentially attracting more capital into the stock market.
See More
Wall Street's Top Three AI Stock Picks
- Lumentum's Positive Outlook: JPMorgan analyst Chatterjee raised Lumentum's price target from $565 to $950, anticipating earnings per share of $24 by 2027, reflecting strong confidence in future demand driven by surging needs for optical networking and related components.
- Broadcom's Partnership Boosts Confidence: Benchmark analyst Acree reiterated a buy rating on Broadcom with a price target of $485, as the multi-year deal with Meta is expected to propel AI chip revenues beyond $100 billion, further solidifying its leadership in the AI accelerator market.
- Dell's Market Share Growth: Mizuho analyst Rakesh increased Dell's price target from $180 to $215, forecasting server orders of $53 billion and $68 billion for 2027 and 2028, respectively, benefiting from rising AI server demand and market disruptions affecting competitor Super Micro.
- Investment in AI Infrastructure Rising: Analysts project cloud service providers' capital expenditures to reach $689 billion in 2026, reflecting a 64% year-over-year growth, which will drive Dell's market share in AI servers from 19% in 2025 to 25% by 2029, indicating strong growth potential in this sector.
See More
