Vistra stock soars 315% in 2024 as electricity demand rises with AI data centers

Vistra's stock has surged 315% in 2024, making it the top performer in the S&P 500, driven by rising electricity demand linked to artificial intelligence data centers. This marks a significant increase compared to Palantir Technologies, which has risen 290% this year. The Federal Energy Regulatory Commission has revised its forecast, predicting U.S. electricity demand will grow at 4.7% annually through 2029, up from 2.6%. Vistra, as the largest domestic power generator, is well-positioned to benefit from this trend. Vistra's strong market position includes a diverse energy portfolio and significant nuclear capacity. Analysts expect its earnings to grow by 22% annually through 2026, suggesting the stock's current valuation is reasonable.