At the heart of America's two most important sectors of the next decade, AI and energy, lies a critical third industry.
It's so critical to the survival of the nation, the White House has invoked emergency powers to protect it, and Whitney Tilson is going to reveal what it is and why three “AI Power Companies” are the best way to play it.
The Teaser
Abilene, Texas. It could soon be the epicenter of America.
Whitney Tilson is perhaps best known as a former fund manager and Warren Buffett disciple. Now, he's turned to the dark side and become an investment newsletter hypeman as the lead analyst over at Stansberry Research.
We have reviewed some of Whitney's previous handywork, including his Top Stocks for the Nuclear Renaissance and DNA Titan Company.
Back to Abilene, Texas. The city sits about 150 miles west of Fort Worth and is called the “key city” for its central location.
It is also central to the artificial intelligence buildout, with construction on the first Stargate data center campus covering the size of 750 football fields already underway, and other nearby projects also announced.
To actually go beyond news headlines and come online, every one of these projects needs a rare convergence of four ingredients that almost never coexist together in one place.
Besides vast open acerage, abundant power, and massive water supplies, there's another reason why Abilene and West Texas are key.
The right geology.
Rock formations that hold the natural resources needed to power these projects.
Whitney has identified three “AI Power Companies” that could be the most asymmetric trades of the entire AI infrastructure boom and their catalysts.
The Pitch
A full analysis on all three companies can be found in a new research report called: The Power Chapter: 3 Must-Own Companies Fueling America’s Biggest Ever Construction Boom.
It's only available with a subscription to Stansberry's monthly research service, Commodity Supercycles, which costs $129 for the first year (normally $499), and comes with a 30-day money-back guarantee.
The Three Catalysts Triggering the Biggest Commodity Supercycle in Modern History
ESG.
Wall Street's Environmental, Social, and Governance mandates set mining, oil, and gas spending back by a decade.
This is the first catalyst and the numbers bear it out.
Artificially Low Capex
Mining exploration budgets are off 40% from their 2012 peak, while oil and gas capital spending (capex) has nearly halved, going from $900 billion in 2014 to $570 billion in 2025.
Now, the consequences of 10 years of chronic underinvestment are starting to show.
To catch up, McKinsey estimates the world needs up to $5.4 trillion in new mining investment over the next decade.
The last time such a period of underinvestment happened was 2000-2008. A time when oil went from $25 a barrel to $140 a barrel and gold climbed from $250 an ounce to more than $1,000 an ounce.
Doubling of Power Consumption
Electricity demand equal to entire countries.
Following two decades of growth flatter than the state of Florida, electricity demand hit a new high all-time high this summer.
Per the Energy Information Administration (EIA), data centers are the dominant driver of this growth and there's no signs of this slowing until 2028, at the earliest.
Acceleration of Dollar Depreciation
We all know the track record.
$1 to three cents.
This is how much a 1913 dollar is worth today.
However, the pace of the depreciation has accelerated over the past five years like a daredevil about to hit a stunt ramp.
All told, it's lost 22.5% of it's purchasing power since 2020, when incoincidentally, the Fed also created roughly one-fifth of all dollars ever brought into existence.
As a result, central banks are now dumping Treasuries for hard assets at the fastest pace on record and the last time faith in the dollar visibly buckled during the 1970s, the broad stock market went nowhere for 10 straight years, while resource stocks delivered the gains of a lifetime.
Whitney is seeing a similar setup unfold today, only on a bigger scale, and he's found three ways to play it for huge gains.
Revealing Whitney Tilson's AI Power Companies
Every data center going up needs huge amounts of always-on power.
Whitney is teasing the three companies supplying it, starting with…
The Heavy Duty Gas Turbine Maker
- Only three companies in the world manufacture the heavy-duty gas turbines powering AI data centers at scale.
- The one Whitney recommends has production slots booked solid through 2030.
- Chevron just teamed up with it to power 4 gigawatts of AI data centers.
GE Vernova (NYSE: GEV) is Whitney's gas turbine maker.
- GE Vernova is an energy equipment manufacturer, including gas turbines, which are reportedly sold out through 2030.
- It has a partnership in place with Chevron to co-develop scalable, reliable power solutions for data centers running on U.S. natural gas.
The Only Company that Can Power AI at Scale
- It's owns more of the single most important power source in the AI arms race than anyone else on the continent.
- Microsoft and Meta have signed separate 20-year contracts to buy 100% of the power from entire installations this company owns.
The “only company” is Constellation Energy Corp. (Nasdaq: CEG).
- Constellation is the largest nuclear fleet operator in the nation with 55 gigawatts of capacity.
- It has separate 20-year agreements in place with Microsoft and Meta to supply power to their respective data center builds.
The Little-Known Always-On, Carbon-Free Power Provider
- The Department of Energy estimates that tapping just 0.1% of this energy source could power the entire United States for two million years.
- Google signed a 15-year agreement with it for its Nevada data centers.
The third AI Power Company is Ormat Technologies Inc. (NYSE: ORA).
- Ormat is an explorer, designer, builder, and supplier of geothermal energy, which the DOE estimates could supply the world's total energy needs for two millenia.
- Earlier this year it entered into a long-term geothermal Power Purchase Agreement (PPA) to support Google’s operations in Nevada with up to 150MW of new geothermal capacity.
America's Greatest Retirement Stock
There's one more name that Whitney teased throughout his presentation, saying it “profits from oil, water, natural gas, and data-center leases on the same land of nearly a million acres every single month.”
At the very end, he throws us a bone and drops the name. It's Texas Pacific Land Corp. (NYSE: TPL)*, a former land trust dating back to the 1870s that owns approximately 900,000 acres of West Texas land.
Turn every $1 into $5?
In the 1970s, a simple natural resource portfolio crushed the stock market, turning every dollar invested into roughly five times that amount over the decade.
Whitney is betting on a repeat.
Based on supply/demand dynamics and dollar depreciation, he could be right.
The only wild card is a doubling of power consumption.
According to Data Center Watch, a growing number that now tops $64 billion worth of U.S. data center projects have already been stalled or delayed due to a growing wave of local, bipartisan opposition.
Add in electricity and transformer shortages even where projects are moving forward and the dream of “superintelligence” and widespread automation looks like it is going to take a lot longer than early hype suggested.
In such a scenario, valuations will compress, but names like Constellation Energy and Texas Pacific Land* will still come out ahead over the long-term due to the first two factors mentioned above.
On a more aggressive timeline where AI remains on schedule and jumps the shark into the physical realm, GE Vernova could net above-average gains, due to it's still moderate by AI-standards, current earnings multiple of 29x.
Ormat is priced like the vertically-integrated supplier that it is at 56x current earnings and is on a longer timeline regardless of what happens due to the inherent nature of it's primary business – developing a new energy source.
Overall, I can see some of Whitney's picks turning $1 into $2-$3 over the next few years and perhaps, even $5 over the next decade, if all three catalysts remain in place.
Quick Recap & Conclusion
- AI, energy, and natural resources, are America's most important industries and Whitney Tilson is teasing three “AI Power Companies” as the best ways to play them.
- Artificially low mining capex, a doubling of power consumption, and a depreciating dollar are catalyzing the most asymmetric trades of the entire AI infrastructure boom.
- All are revealed in a new research report called: The Power Chapter: 3 Must-Own Companies Fueling America’s Biggest Ever Construction Boom. It's only available with a subscription to Stansberry's monthly research service, Commodity Supercycles, which costs $129 for the first year (normally $499).
- We took the liberty of revealing all of them for you, for free! They are GE Vernova (NYSE: GEV), Constellation Energy Corp. (Nasdaq: CEG), Ormat Technologies Inc. (NYSE: ORA), and Texas Pacific Land Corp. (NYSE: TPL)* as a bonus pick.
- Five-bagger returns, or more, are on the table if all catalysts for a commodity supercycle remain in place.
Will there be a commodity supercycle over the next decade? Tell us what you think in the comments below.
*The author owns shares of Texas Pacific Land Corp. (NYSE: TPL).