In our recent publication, we explored the Top 10 AI Stocks in the Spotlight This Week. This article delves deeper into where Bloom Energy Corporation (NYSE:BE) stands in comparison to other notable AI stocks featured this week.

According to a comprehensive analysis by Morgan Stanley, the demand for electricity is anticipated to remain robust, irrespective of any potential recession that could arise due to the tariff policies instituted by former President Donald Trump. This resilience is primarily attributed to the substantial power requirements of data centers, which are not expected to decrease, even in the face of an economic downturn or due to efficiency advancements from companies like Ant Group and DeepSeek. Although it is acknowledged that industrial demand might see a temporary decline, the long-term strategy of reshoring manufacturing back to the United States is expected to mitigate this issue significantly.

We believe that power demand trends are more durable than in previous cycles, the report stated, highlighting the inelastic nature of data center demand. The firm pointed out that while industrial demand could dip in the near future, the reshoring of manufacturing is a promising long-term trend that will bolster demand.

In a similar vein, a report from Bloomberg projects that the electricity demand from data centers in the United States could increase by an astounding 20-40% by 2025. Furthermore, this trend of strong double-digit growth is expected to continue into the years 2026 through 2030.

While Morgan Stanley does recognize that rapid changes in policy may have significant ramifications on large capital investments, it also predicts that electricity consumption driven by artificial intelligence could grow tenfold by 2028.

With this in mind, we do not want to minimize the risk of a near-term shock in demand, which could lead to slower order growth for some companies, the analysis cautions.

Historically, energy stocks have shown remarkable resilience even during economic recessions. Morgan Stanley noted that since 1960, the average decline in demand during economic downturns has been a mere 0.2%.

Utilities typically present a favorable outlook in a recession, given their defensive characteristics, the analysis added.

However, the firm remains optimistic about the anticipated surge in spending on AI infrastructure by technology giants such as Meta, Amazon, and Alphabet. These hyperscalers are keen to secure a competitive edge in the realm of artificial intelligence, needing substantial resources to support their extensive product pipelines that require graphics processing units (GPUs).

For our analysis, we meticulously selected AI stocks by reviewing news articles, stock evaluations, and press releases. These stocks have also gained popularity among hedge funds, with data reflecting their preferences as of Q4 2024.

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