Vistra Corp. (VST) Bets on AI Power Demand With $1.9 Billion Natural Gas Deal

Vardah Gill

Sun, May 18, 2025, 10:48 AM 1 min read

Vistra Corp. (NYSE:VST) has recently agreed to acquire seven natural gas power plants for $1.9 billion from Lotus Infrastructure Partners, aiming to meet the growing energy needs driven by artificial intelligence.

VST is a Texas-based electricity and power generation company that offers essential power resources to its customers.

The deal will add 2,600 megawatts of capacity across five states—mainly in the Northeast—boosting Vistra’s already extensive power generation portfolio from California to Maine. This capacity is roughly equal to 2.5 nuclear reactors.

According to Glenrock Associates analyst Paul Patterson, the move reflects a broader trend among independent power producers capitalizing on the surge in data center demand. Investors have been responding positively to such acquisitions, marking a shift from years of industry struggles and bankruptcies. Patterson noted that while Vistra’s move isn’t surprising, more similar deals are likely on the horizon.

In addition to Vistra Corp. (NYSE:VST)’s growth strategy, the company is also a strong dividend payer. On May 2, it announced a 1% hike in its quarterly dividend to $0.225 per share. Through this increase, the company stretched its dividend growth streak to 13 years. In the past 12 months, the stock has surged by over 71%, outperforming the broader market.

While we acknowledge the potential of VST to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk.  If you are looking for an AI stock that is more promising than VST and that has 100x upside potential, check out our report about this cheapest AI stock.

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