Is clean energy quietly taking a bite out of AI's cake in 2025? These 3 stocks are worth following.

If you are still focused on the rise of AI stocks, you may have already missed an even fiercer market.

The data is quite shocking: Since the beginning of this year, the Clean Energy ETF (ICLN) has risen by 46%, directly surpassing the 20% increase of the Nasdaq, and even outperforming AI leader Nvidia's 38%. Even more outrageous is that, for the first time, renewable energy generation in the U.S. has exceeded coal, with 66% of California's energy coming from clean energy (up from 41% in 2015).

Why is no one hyping this market? A major reason is the well-known attitude of the Trump administration towards renewable energy, coupled with last year's “beautified proposal” which cut many tax credits. Ironically, this policy has instead triggered a nationwide race: companies must launch clean energy projects before July 2026, or they will not receive subsidies. As a result, Bloomberg New Energy Finance predicts that this will increase project power generation by 10%.

A $110 trillion energy transition is underway globally, and these three stocks are expected to benefit from it:

NextEra Energy (NEE)

93% of the increased generation capacity from renewable energy and batteries in the United States will come from these types of companies. This company is the largest supplier of energy infrastructure in the United States, and its subsidiary, Florida Power & Light, plans to add 8 gigawatts of solar and battery storage by 2029 (enough to power 6 million homes).

Financial data shines: Last quarter's profit rose by 25%, revenue increased by 10.4%, and operating profit margin is 33.8% (far below the industry average). The average annual adjusted EPS growth over the past decade is 10%, significantly exceeding peers by 3%. The dividend policy is also aggressive: it has increased every year since 1994, with a 10% rise last year and a planned 10% increase for next year. The current dividend yield is 2.7%, more than twice the average level of the S&P 500.

First Solar (FSLR)

The largest solar panel manufacturer in the United States has risen 38% this year. Last quarter, EPS exceeded expectations by 19.55%, gross margin increased from 41% in Q1 to 46%, and revenue soared by 800 million dollars compared to Q1.

The P/E is only 20.6, while the average for the S&P 500 is 30.2, making it look cheap. Analysts predict a growth of 56.8% next quarter — and these analysts have underestimated this company's sales growth every quarter for the past four quarters, with the largest miss being 77%. This indicates that there is still a lot of room for growth.

iShares Global Clean Energy ETF (ICLN)

For those who are too lazy to choose individual stocks, this ETF could be considered. With a size of $1.7 billion, it tracks about 100 clean energy stocks. Although it has risen by 46%, the allocation is quite diversified: the largest holding, First Solar, only accounts for 9.4%. It covers fuel cells, wind turbine manufacturers, utilities, etc., with over 50% being utility stocks (which are stable and particularly suitable for investors seeking cash flow).

The rate is 0.39%, cheaper than the average of active funds at 0.48-0.69%. If you want to take advantage of this market trend but don't want to go all-in on a single company, this is a good option.

Bottom line: Trump's tax policy was originally intended to target clean energy, but instead accelerated the construction race in this industry. The global energy transition trend is set, and this wave has instead become an accelerator forced out by policy.