You think you're speculating on AI, but actually you're speculating on "electricity": the biggest winner has already emerged - NEE

Today, we continue to discuss the U.S. energy sector in the stock market. Previously, we talked about the giants in natural gas and oil. Next, let’s focus on another important branch of the energy sector—renewable energy. Currently, renewable energy sources like wind power and photovoltaic energy are rapidly rising. The current consensus among institutions is that in the future, wind and solar power will account for over 50% of global electricity generation! So, this trend is likely to be the general direction.

1. Introduction

Currently, the leader in the renewable energy sector is NextEra Energy, Inc. (NYSE: NEE), the largest electric power and energy infrastructure company in North America, and also the world’s largest electric utility holding company by market value. Headquartered in Florida, it is a Fortune 200 company with approximately 17k employees.

Let’s look at some key data:

• As of April 2026, market capitalization exceeds $200 billion, making it one of the largest wind and solar power companies globally.

• The stock price has risen from $5 in 2000 to $96 now, a 20-fold increase. If we consider the low point in 2023 at $47, it’s still about a 2-fold increase.

• Power generation capacity is 80 GW, which is at a national-level scale, equivalent to the total installed capacity of a medium-sized country. In 2025, the global renewable energy generation capacity is 5,149 GW, with this company accounting for 1.4% of the global total—placing it among the super players.

2. Core Business Structure

The company operates through two main subsidiaries:

1. Florida Power & Light (FPL): The largest regulated electric utility in the U.S., serving about 12 million customers in Florida. Its business is stable and predictable, forming the majority of the company’s regulated capital base. FPL focuses on reliable power supply, grid modernization, and solar expansion, currently with over 8.5 GW of solar capacity. In Q1 2026, it added 600 MW of solar, with plans for 12 GW of solar and 7 GW of energy storage by 2035.

FPL is its most stable and core revenue source, providing steady cash flow and profits. Currently, annual revenue is stable at around $17-18 billion, accounting for 70% of total revenue.

2. NextEra Energy Resources (NEER): The world’s largest renewable energy generation company (wind + solar), also operating natural gas, nuclear, and battery storage. NEER operates in 41 U.S. states and 4 Canadian provinces, with a total capacity exceeding 40 GW (overall net generation + storage capacity about 80 GW as of the end of 2025). NEER is the company’s growth engine, focusing on long-term power purchase agreements (PPAs) and large project development. Expected development from 2026 to 2032 includes: 31.5-41.5 GW of solar, 8.5-14.5 GW of wind, and 32-43 GW of storage.

For example, if NextEra builds a wind farm with a $1 billion investment and a 25-year lifespan, without a PPA, electricity prices fluctuate daily, making income unstable. So, they first sign contracts with clients like Amazon or Google to lock in prices, ensuring very stable revenue.

Currently, the main clients are tech giants with data center needs, such as Amazon, Google, Meta, and Microsoft, which account for about 50%.

Thus, it’s somewhat similar to real estate developers in the renewable sector adopting a leasing model! With AI driving demand, especially for data centers, this business segment is expected to see explosive growth in the future.

3. Financial Data

The company’s current market cap is $201 billion, with a P/E ratio of 24 and earnings per share (EPS) of $3.95. This PE ratio is similar to that of the previous oil giants, as the company’s main revenue still comes from FPL’s power infrastructure rather than purely renewable energy.

The stock price is also at a new high, so the PE is relatively high!

Looking at revenue, over the past five years, it has been very stable around $22-26 billion. Net income increased from $4.1 billion in 2022 to about $7 billion now.

In summary, I personally feel that the stock is somewhat high at the moment, given the new high prices and high PE ratio. Although the future demand for renewable energy is significant, it might be better to wait. However, the company’s fundamentals are solid, with stable FPL and growing NEER driving dual engines—offering both steady income and growth potential. Long-term, it remains a promising target.