The latest research from Wells Fargo shows a significant uptick in mentions of “power,” “electricity,” or “energy” during S&P 500 earnings calls, indicating a focus on securing power for data center projects. This trend is seen as a key way to play the AI investment cycle.

Investment strategist John Rowland is closely monitoring the energy storage demand driving battery stocks and the resurgence of nuclear energy. Valuation concerns have caused a pullback in AI leaders like Nvidia and Palantir, prompting a broader look at less crowded AI investment opportunities.

All major hyperscalers have signed power purchase agreements for solar energy to support their data center growth. The solar supply chain in the US has been reshored, with a 37% increase in solar module production capacity driven by significant private investment.

While solar stocks are in demand, policy issues like grant clawbacks and permitting slowdowns could impede capacity growth by 27% by the end of the decade. Key solar stock watchlist names include Bloom Energy, Corning, and First Solar, with potential opportunities in niche component manufacturers.

Investors are advised to consider companies with little competition in the solar supply chain, such as Corning, amidst industry headwinds. End users seek one-stop shopping solutions, but focusing on unique supply chain companies could offer profitable opportunities in the solar sector.

Read more at Yahoo Finance: 3 Solar Stocks Our Top Chart Strategist is Watching as Energy Demand Surges