NextEra & the AI Power Grab

Everyone’s chasing the AI dragon these days. It’s like a particularly aggressive Tupperware party – you feel obligated to participate, even if you already have enough plastic containers, or in this case, enough tech stocks. You see the headlines about Meta Platforms throwing money at data centers – billions, naturally – and Applied Digital building them. It feels… precarious. Like building sandcastles during high tide. My cousin, Dale, tried that once. He was very upset.

So, I started looking for something… sturdier. Something that wasn’t reliant on the whims of Mark Zuckerberg’s latest obsession. That’s when I landed on NextEra Energy (NEE 0.32%). It’s not exactly glamorous, I admit. It’s not like buying shares in a company that designs self-folding laundry. But NextEra generates power. Real, tangible power. From things like natural gas, nuclear, solar, and wind. It’s… reassuringly basic. Like a good, solid pair of sensible shoes.

The stock’s been a bit of a rollercoaster, admittedly. I checked the numbers – and I’m not a numbers person, I prefer observing people at bus stops – but over the past fifteen years, it’s managed a respectable 14.72% average annual return. Which is… good. I think. My financial advisor, Brenda, would be proud. Brenda always smells faintly of lavender and quiet desperation.

Period (Ending Jan. 27, 2026)	Average Annual Return
One year	27.35%
Three years	7.45%
Five years	3.3%
10 years	14.25%
15 years	14.72%

Here’s the thing. All this AI stuff – the algorithms, the machine learning, the promises of a robot uprising – it needs power. A lot of power. Apparently, Nvidia’s CEO, Jensen Huang, thinks we’re looking at three to four trillion dollars worth of infrastructure spending by the end of the decade. That’s a number that makes my head spin. I tried to explain it to my cat, Bartholomew, but he just blinked and demanded tuna.

NextEra has already inked deals with companies like Alphabet and Meta to power their data centers. They’re also involved in storing power and even accelerating nuclear energy development. It’s… logical. Like realizing you need a flashlight when the power goes out.

Now, NextEra isn’t cheap. It’s not like finding a twenty-dollar bill in an old coat pocket. But it’s reasonably priced for a long-term investment. Its forward P/E ratio is around 21, a bit below its five-year average, and its price-to-sales ratio is around 6.6. Which, according to Brenda, is… acceptable. She said it with a sigh.

With a market cap of $182 billion, NextEra is the big dog in the utilities sector. And it pays a dividend – currently around 2.6%. The payout has been growing steadily – $2.27 per share recently, up from $1.87 in 2023 and $1.25 in 2019. It’s not going to make me rich, but it might cover the cost of Bartholomew’s gourmet salmon pâté.

So, if you’re looking for a company that’s quietly powering the future, NextEra Energy might be worth a look. Just remember, there are other energy stocks out there, too. And Bartholomew is still waiting for his lunch.

2026-02-02 11:12

Read More