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The AI Investing Pulse

October 2nd, 2025

In this Week’s Edition:

1. Analysis - AI’s energy crunch and the companies set to benefit

2. Stock Ideas - 9 under the radar AI stocks

3. News - Beyond the mag 7: these tech stocks could be the biggest winners

4. Startups - Fuelling the future: why AI is the new frontier of venture capital

5. Trends - Navigating the AI rollercoaster: volatility, rebound, and the future

6. Other News - Step into tomorrow: the AI home at LG's IFA 2025 booth

AI’s Energy Crunch and The Companies Set to Benefit

The escalating electricity demand of artificial intelligence (AI) has become one of the most pressing debates in energy markets. Rising prices and grid strain are increasingly tied to AI’s growing footprint, with consensus forming around a stark reality: there can be no true AI age without massive energy growth.

Investors are taking notice. The Power & Cooling stack, central to managing AI’s energy use, delivered a +42% return this year, underscoring its growing significance in the AI ecosystem.

🔋 The AI-Driven Demand Surge

Electricity demand, once stable and predictable, is entering a new era. Global consumption is projected to grow 25% by 2030. Not shocking on its own, but if you look closer, much of that increase comes from AI, which is driving an unprecedented surge in data centre power use.

Generative AI is extraordinarily energy-hungry. A single ChatGPT query uses up to 10× more energy than a Google search, and hyperscale data centres now consume as much electricity as mid-sized cities. In the UK and US, data centres alone could account for nearly half of all new demand this decade. By 2030, they could consume as much power as an entire country does today. The strain is already evident in higher wholesale prices, grid bottlenecks, and household rate rises.

Tech giants, Amazon, Meta, Microsoft and Alphabet, are racing to secure energy supplies, signing long-term deals across nuclear, gas and renewables, while investing in small modular nuclear reactors (SMRs). In the AI race, energy security has become as strategic as the algorithms themselves.

⚖️ Beneficiaries on Both Sides

This transformation creates two clear sets of beneficiaries:

• Power Suppliers such as NRG, Talen, Constellation, and Vistra, which profit directly from surging electricity demand.

• Efficiency Enablers like Vertiv and Eaton, which optimise power and cooling, and chipmakers (NVIDIA, AMD, ARM, Intel) in the Hardware stack, which reduce AI’s energy intensity by delivering more compute per watt.

Not all efficiency winners sit in the Power & Cooling stack, but together these companies highlight how AI’s growth depends on both supplying more energy and using it more intelligently.

Let’s explore the top Power & Cooling stocks flagged by our AIIP model.

📊 Power & Cooling Stocks

🔧 Vertiv Holdings Co $VRT ( ▲ 7.11% )  

• Role: Provides power and cooling systems for AI data centres; partnered with NVIDIA ($NVDA) on prefabricated AI factories.

• AIIP Ranking: Fundamental

• AIIP Scores: Total 88 / RS 69

• 1 Week Return: +15.6%

☢️ Talen Energy Corp. $TLN ( ▲ 0.38% )  

• Role: Independent power producer with nuclear assets; supplies Amazon’s AI data centres.

• AIIP Ranking: Momentum

• AIIP Scores: Total 7 / RS 89

• 1 Week Return: +4%

⚡ NRG Energy, Inc. $NRG ( ▼ 0.03% )  

• Role: Operates in electricity generation; applying AI to products and services.

• AIIP Ranking: Momentum

• AIIP Scores: Total 44 / RS 86

• 1 Week Return: -0.6%

🔌 Vistra Corp. $VST ( ▲ 2.85% )  

• Role: AI-linked electricity and power generation; seen as a next-gen energy stock.

• AIIP Ranking: Momentum

• AIIP Scores: Total 26 / RS 84

• 1 Week Return: -0.1%

👀 Other Power & Cooling Stocks - No AIIP Ranking

• Constellation Energy ($CEG): Largest U.S. nuclear operator; securing PPAs with major AI players. (+6.6% last week)

• Eaton Corp PLC ($ETN): Power management specialist; applying AI to efficiency solutions. (-0.1% last week)

🔍 Final Take

AI is rapidly reshaping the energy landscape. While surging demand brings risks of higher prices and costly infrastructure, it also creates long-term opportunities for those supplying power and driving efficiency. Vertiv and Talen stand out as direct beneficiaries, NRG and Vistra offer momentum-driven exposure, and Constellation and Eaton remain important names to watch, with chipmakers like NVIDIA, AMD, and ARM also reducing AI’s energy intensity.

The challenge and the opportunity lies in navigating these dual realities of energy strain and innovation as the AI age unfolds.

The AI Insights Every Decision Maker Needs

You control budgets, manage pipelines, and make decisions, but you still have trouble keeping up with everything going on in AI. If that sounds like you, don’t worry, you’re not alone – and The Deep View is here to help.

This free, 5-minute-long daily newsletter covers everything you need to know about AI. The biggest developments, the most pressing issues, and how companies from Google and Meta to the hottest startups are using it to reshape their businesses… it’s all broken down for you each and every morning into easy-to-digest snippets.

If you want to up your AI knowledge and stay on the forefront of the industry, you can subscribe to The Deep View right here (it’s free!). 

_{Disclaimer - This content is provided for informational purposes only and does not constitute investment advice, personal recommendations, or an invitation to engage in any investment activity. The information presented is derived from publicly available sources and should not be solely relied upon for making investment decisions. Always consult with a qualified financial professional before making investment choices. Past performance is not a guide to future performance.}

^{About AIIP - The AIIP Index tracks 173 AI-focused public companies across the full AI stack, serving as our benchmark for sector performance. All scores are proprietary and calculated using data from Finbox (powered by S&P Global Intelligence). AIIP Total Score (0–100) combines metrics for sales and EPS growth, financial quality, and valuation to assess overall business strength. AIIP Relative Strength (RS) Score measures a stock’s price performance relative to the AIIP 173 AI stocks. Ranking Status is based on score combinations: Fundamental: Total Score ≥ 70, RS < 80. Momentum: RS ≥ 80, Total Score < 70. Watchlist: Total Score ≥ 70 and RS ≥ 80}

TOP AI STOCKS PERFORMANCE

TOP AI ETFs PERFORMANCE

AI STOCKS IDEAS

9 under the radar AI stocks – The Motley Fool

7 picks and shovels stocks powering the AI boom – Tikr

Dan Ives and Tom Lee align on these 13 AI stocks – Benzinga

AI STOCKS & ETFs NEWS

Beyond the mag 7: these tech stocks could be the biggest winners – AOL
High-growth tech stocks are thriving in 2025, with promising companies like SoundHound AI and Broadcom positioned for potential gains beyond the Magnificent Seven.

Palantir: decoding the data giant's AI ambitions – PredictStreet
Palantir Technologies anticipates $3.75 billion in revenue by 2025, driven by a significant increase in U.S. commercial sales and the adoption of its AI solutions.

AI roars back: resurgence of AI stocks – MarketMinute
AI stocks have rebounded strongly in 2025 due to innovation, investment, and adoption, pushing major indices to record highs despite valuation concerns.

The billion-dollar infrastructure deals powering the AI boom – TechCrunch
The AI boom is fuelled by rising infrastructure investments, with companies projected to spend $3 to $4 trillion by 2030.

AI STARTUPS

Fuelling the future: why AI is the new frontier of venture capital – AI Journal
AI is emerging as the primary focus of venture capital, with significant funding shifts favouring AI startups as governments and corporations prioritise investment in AI technologies for competitive advantage and innovation.

Notion Capital closes $130m growth fund AI focus – Tech Funding News
Notion Capital has launched a $130 million growth fund targeting AI-driven solutions and sectors like defense and supply chain logistics.

Databricks startup accelerator – Forbes
Databricks has launched the AI Accelerator Program for early-stage AI startups, offering funding, mentorship, and market support to foster innovation and scalability.

AI TRENDS

Navigating the AI rollercoaster: volatility, rebound, and the future – MarketMinute
The AI sector in 2025 exhibits volatility with a rebound creating uncertainty for investors. Long-term growth remains promising despite challenges, emphasizing the importance of differentiating genuine innovation from hype.

Quantum AI could be the next $10 trillion industry – The Motley Fool
Quantum AI may become a $10 trillion industry, merging AI and quantum computing for enhanced efficiency.

OTHER NEWS

Step into tomorrow: the AI home at LG's IFA 2025 booth – LG Newsroom
LG Electronics presented AI-enabled home innovations at IFA 2025, showcasing seamless connectivity and personalised experiences through its AI Home Solution and FURON.

I tested the best free AI chatbots — here’s what to use – Tom’s Guide
The top five free AI chatbots are reviewed, highlighting ChatGPT for its versatility and Gemini for unique tools. Claude offers precision but is limited without payment.

_{Disclaimer - The information contained on this newsletter does not constitute investment advice or a personal recommendation, nor is it an invitation or inducement to engage in investment activity. You should seek independent financial and, if appropriate, legal advice as to the suitability of any investment decision. Past performance is not a guide to future performance. The value of investments, and the income from them, can fall as well as rise. You may not get back the full amount invested and, in some cases, nothing at all. The information presented is based on publicly available data and sources believed to be reliable; however, its accuracy or completeness cannot be guaranteed. Market conditions can change rapidly, and the information provided may no longer be up to date. This content is for informational purposes only and should not be construed as financial, legal, or tax advice. Data sources: S&P Global Market Intelligence}