NextEra Energy and the AI Energy Boom

NextEra Energy (NEE) is one of few companies we’re holding for both growth and value reasons. On the one hand, they’re the world’s largest producer of renewable energy and a compelling addition to any disruptive technology portfolio. On the other hand, they’re a dividend champion that has seen dividends grow 11% per year over the past decade. The last time we checked in with NEE, revenue growth had stalled. Last year they showed there’s still growth left in the tank.

Today, we want to look at NEE’s exposure to the AI power thesis, the risks they might have relating to Florida’s weather, and conduct a general check in with a company that’s shown us some great returns over the years.

NEE, AI, and Nuclear Energy

The AI thesis is straightforward. Elon Musk is predicting an electricity shortage due to increased AI demand and electric utilities stand to benefit from the increased demand for electricity. NEE is the largest electric utility company worldwide which is compelling on its own. Leaders enjoy cheaper access to capital and benefit from economies of scale. Additionally, NextEra is the fourth largest producer of nuclear energy in the