Chevron, Engine No. 1 and GE Vernova Join Forces to Power AI

Chevron Corporation CVX, Engine No. 1 and GE Vernova recently collaborated on an ambitious initiative to develop natural gas power plants to support the surging energy demands of AI-driven data centers. The venture aims to create a multi-gigawatt-scale power plant that should be co-located with the data center.The news comes amid rising competition in artificial intelligence between the United States and China. The recent launch of DeepSeek’s AI chatbot has intensified this race, with many users eager to test the rival of OpenAI’s ChatGPT and observe if DeepSeek, which has been developed at a very low cost, has been able to match America’s leading AI companies.America’s Stargate Initiative to Build AI InfrastructureLast week, President Donald Trump made major decisions to advance America’s Artificial Intelligence (AI) initiative. The president approved an executive order that would revoke earlier government policies and remove the hurdles to AI innovation.The president also talked about a joint venture, Stargate, formed by OpenAI, Oracle and SoftBank, which will invest about $500 billion in AI infrastructure. Stargate is expected to build new data centers and deal with the energy demands needed to develop the evolving AI market in Texas. The new entity will start with an initial investment of $100 billion and has an opportunity to reach five times the initial amount.CVX’s Energy-AI ConvergenceWith the acceleration in AI initiatives, meeting energy demands holds primary importance. Chevron and its partners aim to address the biggest energy challenge by generating domestic natural gas to fuel AI-driven data centers and secure AI leadership. The partnership also has the potential to drive productivity gains across the economy and restore America as an industrial superpower.The first project of Chevron and its partners, called ‘power foundries’, is aimed at leveraging seven American-made GE Vernova 7HA natural gas turbines that will serve the data centers in the Southeast, Midwest and West regions of the country. In order to avoid an electricity price rise for consumers, the partnership plans not to overburden the existing transmission grids with the flow of new power generation. The partnership aims to deliver about 4 gigawatts of electricity, which has the potential to power 3-3.5 million U.S. homes by the end of 2027.CVX’s Zacks Rank and Key PicksCalifornia-based Chevron is one of the largest publicly traded oil and gas companies in the world, with operations that span almost every corner of the globe.Currently, CVX has a Zacks Rank #3 (Hold).Investors interested in the energy sector might look at some better-ranked stocks like ARC Resources Ltd. AETUF, Equinor ASA EQNR and Gulfport Energy Corporation GPOR.While ARC Resources and Equinor currently sport a Zacks Rank #1 (Strong Buy) each, Gulfport Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Calgary, Canada-based ARC Resources is engaged in the exploration, acquisition and development of oil and natural gas properties. AETUF’s expected EPS growth rate for next year is 50.78%, which aligns favorably with the industry growth rate of 10.50%.Headquartered in Stavanger, Norway, Equinor is one of the premier integrated energy companies in the world, with operations spreading across 30 countries. EQNR’s expected EPS growth rate for the next five years is 5.30%, which aligns favorably with the industry growth rate of 5%.Gulfport Energy is an independent natural gas and oil company focused on the exploration and development of natural gas and oil properties in North America. The Zacks Consensus Estimate for GPOR’s 2024 earnings indicates 108.53% year-over-year growth.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Chevron Corporation (CVX): Free Stock Analysis Report Gulfport Energy Corporation (GPOR): Free Stock Analysis Report Arc Resources Ltd. (AETUF): Free Stock Analysis Report Equinor ASA (EQNR): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks