analysts are expecting a big year for energy stocks in 2025 as these companies work to keep up with all the growth in AI here to break down which three stocks to watch in this sector is Market beat guest Mark lickfeld he is the chief income strategist at the Oxford Club thank you so much for joining us today mark my pleasure thanks for having me so you just released a new report really talking about the one factor that could slow down all of the explosive growth we've been seeing in Ai and that is energy and the
demand on the system will you share a little bit about the research that you've done as you may know AI just requires enormous amounts of energy for example a simple chat GPT query requires 10 to 25 times more energy than a simple Google search the draw on energy the requirements for energy from AI are astronomical Elon Musk has said that the next shortage in the United States is going to be electricity Donald Trump has said that because of AI we need twice the amount of electricity that we have in order to have electricity you need
something to fuel it so uh so to me energy is is the very obvious story for 2025 yeah that's such a great point and you know we've been talking so much about all these AI stocks that are seeing tremendous growth but just recently we've started to have more analysts and more people talking about these kind of secondary groups that are really supporting Ai and secondary Industries supporting AI energy like you said an obvious one how much uh growth would you expect for some of these energy sector stocks in 2025 I think it's going to be
tremendous I mean if you look at things like nuclear energy there are 444 nuclear reactors in the world right now that are operating there are plans for another 110 and those are just the the big reactors there are something called uh small modular reactors which are are just like it sounds smaller nuclear rea actors they take less time to to construct uh those are starting to to go up you've got major major industry major companies like Microsoft and Amazon uh Google that are getting involved with these SMR small modular reactors but that's a long-term solution
I'm also looking at natural gas because that's a shorter term solution the United States has loads and loads of natural gas it's cheap it's cleaner than oil and to me that's the short to intermediate term solution for our energy needs whereas nuclear is going to be the intermediate to longer term solution yeah you've already mentioned a couple of sectors there energy is so widespread there's so many different forms of energy and new clean energy coming out as well are there any specific sectors you see supporting the AI growth more than others and I know again
you just mentioned nuclear and natural gas but any other sectors to watch in the year ahead yeah data storage which also requires tremendous amounts of energy so this is an amazing statistic I just recently came across 90% of all the world's data throughout history has been created in the last 2 years so and that's only going to increase with AI so there needs to be a place to store all this data so you've got these data centers uh popping up all over the world there's a large concentration of them in Northern Virginia because it's close
to Washington and but but there it's happening all over the world and so these data centers require tremendous amount of electricity run the servers to cool the servers that's obviously very very important you know what I like about the the data center REITs and and energy is you know these are the picks and shovels of the new Gold Rush uh you know when you you think back to the gold rush in the 1800s sure some people found a couple of nuggets in the river but really the the ones who made a lot of money were
the ones who sold the tools the the shovels the piics the Levi's jeans I want to be involved in the companies that are going to to make money no matter who wins so you know we may or may not be able to pick the next big AI winner just like some people may have gotten Amazon right but a lot of people might have gone with pets.com back 25 years ago I want to be the in the companies that are serving all of them so that no matter who wins these companies that are providing all the
tools are making money and that's definitely energy and it's definitely the data center rates that is such a great Point thank you for sharing that with our viewers another thing our viewers love to see and some specific stock picks I know in your special report you have some really great picks and we're gonna share more about that in just a little bit but first let's start out with just some specific energy stocks that you can see doing really really well in 2025 so in the natural gas space I have I have two one is you're
not supposed to have favorite stocks but this is is kind of one of my favorites it's been for a long time Enterprise Products Partners ticker symbol is epd this is a master limited partnership and they transport uh natural gas throughout the country as long as companies are transporting natural gas uh much of it will have to go through Enterprises pipelines and they just collect a fee along the way there's not a lot of uh you know Capital that's required to uh to run the business uh basically they just have to maintain these pipelines and it
pays uh almost a 7% yield they've been raising the dividend every year for I think about 24 25 years now uh and it's just a a real steady performer year after year the other natural gas company I really like is shenir Energy Partners so not shenir energy shenir energy is the ticker symbol is LNG this is shener Energy Partners also uh master limited partnership and the ticker symbol is cqp and the reason I like it is they have one of the largest uh natural gas terminals in the country uh they stored gas they transport gas
and they and they have uh shipping Maritime terminals where they can export the gas which is going to be a bigger and bigger part of the natural gas business in the US going forward Donald Trump is is very much in favor of exporting gas and let's not forget Europe has been importing a lot of gas from Russia and I think they're kind of getting over that they they don't want to be held hostage by Russia be able to import uh American natural gas is going to become more and more attractive to Europe and and that
should definitely Benefit shenir Partners shener Partners also has about a 6% yield versus the regular shenir energy which has a much much lower yield uh and with a master limited partnership your Dividends are tax deferred so uh you have the tax advantage along with the higher yield great now your third pick is not natural gas this is more of an ETF what kind of stocks are included on the ETF that's one of your picks for today it holds physical uranium if nuclear power progresses the way I and a lot of other people expected to there's
going to be a huge amount of demand for physical uranium I expect uranium prices to rise strongly over the long term right now uh it actually has been coming down a little bit so you have the opportunity to buy it perhaps on the cheap but I think longterm it's a great investment so I really like the Sprat physical uranium trust ETF and the ticker symbol is Sr uuf uh and uh this is one I think you you hold for a while and three five years from now I think uranium prices are going to be much
much higher and so will this ETF some great advice for our investors uh with either of these stock picks and really this whole industry do you expect to see the big returns coming in 2025 or are all of these gains potentially more long term as AI really starts to take hold across the country I'm extremely bullish on natural gas in the short term so definitely for 2025 and and Beyond uh nuclear power I think the fundamentals um are a little bit further out I think it's going to take a little longer for for all the
nuclear power plants to start getting operational for some of the the uranium and and nuclear related stocks to start seeing an increase in Revenue that being said I do think nuclear is going to become a much bigger story so I think as we often see in the stock market the stocks will start to appreciate even before the businesses start to improve their fundamentals so I do think nuclear is is going to be a a a really good sector to be in in 2025 I think natural gas you you'll see those fundamentals in the companies uh
really start to ramp a little bit sooner though Mark you have a wealth of information and knowledge on this sector and you share even more of that on your special report that just came out tell folks a little bit more about what to expect in this new report and where they can find it we really dive into the the nuclear story because uh again that that's the long-term solution here for the United States and really for the world it's not just the US that's that's boosting its nuclear capabilities Japan Germany a lot of other countries
are as well so this is a long-term story uh to me it's almost the lwh hanging fruit here for the market in 2025 you can click that link right here to watch that full report I watched it myself very interesting again Mark you are a wealth of knowledge thank you so much for sharing some of it with us today here at Market beads my pleasure thanks so much for having me yes and thank you for watching everyone again check out the link in the description to check out Mark's full report and check out other videos
just like this one here on Market beat as always happy investing
