Remember when nuclear power was just something from sci-fi movies and your high school physics nightmares? Well, Meta just dropped a reality check that’s got Wall Street buzzing and Vistra (VST) stock jumping 15% in premarket trading.
Here’s the deal: Meta signed long-term nuclear energy contracts with Vistra to power their AI data centers. And before you roll your eyes at another “AI changes everything” story, this one actually matters for your portfolio.
Why Meta Went Nuclear (Literally)
Meta isn’t just being dramatic here. They’ve locked in 20-year deals for three nuclear facilities in Ohio and Pennsylvania. We’re talking about powering up to 6.6 gigawatts by 2035 – that’s enough juice to power about 5 million homes, or in Meta’s case, enough to train AI models that’ll probably know more about you than your therapist.
The thing is, AI data centers are basically electricity vampires. They need constant, reliable power, and your typical renewable setup just can’t cut it when you’re training the next ChatGPT. Solar panels are great until it’s cloudy, and wind turbines are fantastic until… there’s no wind. Nuclear? That thing just keeps humming along like your neighbor’s leaf blower at 7 AM on Saturday.
Vistra’s Texas-Sized Opportunity
Here’s where it gets interesting for investors. Vistra isn’t just some random utility company – they’re the biggest power generator in Texas, which happens to be where everyone’s building their AI empires. It’s like owning the only gas station on a highway full of Ferraris.
The company’s got this smart diversified approach: nuclear for the steady baseline power, natural gas for when things get spicy, and renewables because, well, it’s 2026. This flexibility is exactly what tech giants need when they’re throwing around $600 billion on AI infrastructure like it’s Monopoly money.
The Numbers That Actually Matter
VST stock has been having a rough time lately – down over 30% from its September peak of nearly $220. But here’s the kicker: it’s trading at a forward P/E of about 14, which is pretty reasonable for a company that analysts expect to grow earnings by 15% annually over the next five years.
Microsoft’s CEO recently said energy availability, not computing power, is the real bottleneck for AI expansion. Translation: companies like Vistra just became the cool kids at the tech party.
Bottom Line
This isn’t just another utility stock play. Vistra’s positioned at the intersection of two massive trends: the AI boom and the energy transition. With long-term contracts locked in and a dominant position in the fastest-growing tech market, VST might just be the energy stock that actually makes sense in your portfolio.
At around $150 per share, it’s trading at a discount to its recent highs while sitting on what could be the most valuable real estate in the energy world: reliable power in AI country.