For this week’s column, I was planning to do a simple analysis of the Nasdaq-100 showing a holding pattern that’s been in place since May 13. Upon the completion of this consolidation, we should resolve to the upside testing the all-time highs — despite all the lingering macro headwinds. But when I learned about Meta Platforms signing a nuclear power deal with Constellation Energy , I decided to focus on the companies literally powering this revolution in artificial intelligence. I don’t hold Constellation Energy, but I do own Oklo , GE Vernova , and Vistra in our Tactical Alpha Growth (T.A.G.) portfolio at Inside Edge Capital . As the AI buildout powers ahead, this will be one of the key drivers to break QQQ from the three-week consolidation setting up all-time highs. Today we’re going to focus on Vistra Corp (VST), a stock that I also hold in our “fast money” account Active Opps with a 3.6% weighting. Based on today’s news, many of the power generation and equipment suppliers are trading higher along with the semiconductors. I will increase my position size in VST to approximately 5% of my holdings in Active Opps based on the tactics I outline below. But first, let’s talk about the company. Vistra is an integrated power generation and retail electricity company that has positioned itself in a pivotal role to support the AI technology buildout by filling the significant energy demands of AI-driven data centers. In 2024, Vistra acquired Energy Harbor for $3.4 billion — adding four nuclear power plants to its portfolio. Vistra has also made investments in natural gas assets as well as solar facilities, which allowed them to enter into power purchase agreements (PPA’s) with Amazon and Microsoft. VST has grown revenue consistently since 2021 and GAAP EPS aggressively, until this year where analysts see a 11.79% contraction. Non-GAAP EPS is showing growth rates since 2022 of 378%, 88%, 54% and 43% according to S & P Global Capital IQ. The weekly chart shows nearby resistance in the $172-$177 zone. I would feel better increasing my position size if we can get a daily close above $180 setting up a test of all-time highs just below $200. Turning to the daily chart, we see a gap up today into our resistance zone following the Constellation-Meta news. If we can get a move into $180 this week, I will be looking to add to my position and consider the pivot point that is now support at $165 as my risk containment level. We offer active portfolio management and regular subscriber updates like the idea presented above. -Todd Gordon, Founder of Inside Edge Capital, LLC DISCLOSURES: Gordon owns VST personally and in his wealth management company Inside Edge Capital. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
