From Yahoo Finance: 2025-05-05 08:06:00

The energy sector is undervalued by 13.1%, impacted by the trade war and falling oil prices. OPEC+ announced an output increase, affecting crude prices. The AI boom is driving growth in energy industries, with data centers demanding more electricity. Big Tech investments are revitalizing sectors like nuclear energy.

Shell plc (SHEL) is among the most undervalued energy stocks according to hedge funds. The company showed mixed performance in Q1 2025, with revenue of $69.23 billion but a 28% YoY decline in net profit. Shell plans to reduce spending and increase shareholder distributions, maintaining its commitment to buyback programs.

Despite Shell’s potential, AI stocks may offer higher returns in a shorter timeframe. An AI stock has risen in 2025 while popular AI stocks dropped by 25%. For a promising AI stock trading at less than 5 times earnings, consider exploring the cheapest AI stock highlighted in a report.

Read more: Among the Most Undervalued Energy Stocks to Buy According to Hedge Funds