Vistra Corp. (NYSE: VST) is being closely watched by analysts as a top pick in the AI stocks sector. TD Cowen initiated coverage with a Buy rating and a price target of $250. The firm sees structural tailwinds in the power space and a growing demand for electricity from data centers.

The accelerated demand for electricity and the need to upgrade utility assets present a unique opportunity for electric utilities. Power prices are expected to remain high in deregulated markets, with demand levels not seen since World War II. This could lead to significant rate base and earnings growth for Vistra Corp.

Vistra Corp. operates as an integrated retail electricity and power generation company. While it shows potential as an investment, some AI stocks may offer greater upside potential and lower downside risk. For a look at an undervalued AI stock with potential benefits from current trends, check out Insider Monkey’s report.

In conclusion, Vistra Corp. is positioned as a strong player in the energy sector, benefiting from increased demand for electricity and utility upgrades. Analysts have a positive outlook on the company’s growth potential, but investors may want to explore other AI stocks for greater opportunities.

Read more at Yahoo Finance: TD Cowen Initiates Coverage on Vistra (VST) With $250 Target, Names It a Top Pick