I've been thinking lately, why did Taiwan's energy stocks suddenly become a market focus in 2026? Upon closer inspection, this isn't the traditional "policy subsidies + economies of scale" logic, but has been completely rewritten by AI.

Data center electricity consumption skyrocketed from 460 TWh in 2022 to about 1,050 TWh this year, with AI accounting for over 70% of the new demand. The power consumption of training a large AI model is equivalent to the annual electricity usage of tens of thousands of households, which has become a rigid demand. Traditional wind and solar power cannot provide stable 24/7 supply, so the real bottleneck now is nuclear energy and grid upgrades.

I noticed that tech giants like Microsoft, Amazon, and Google are heavily investing in nuclear energy in 2025-2026. Microsoft signed a fusion agreement with Helion Energy, Amazon plans to deploy 12 small modular reactors, and Google has committed to tripling nuclear capacity by 2030. This reflects that power companies with nuclear assets are now receiving the highest premiums.

Honestly, the biggest current bottleneck is that power generation is easy but transmission is difficult. The global power grid is aging, and the delivery time for high-voltage transformers is still 2-3 years into 2026. Major companies like Hitachi Energy have already invested billions of dollars to expand capacity, but supply still cannot meet demand at least until 2027. In the US, data centers' share of total electricity use rose from 4% in 2023 to over 8% this year, directly boosting power company revenue growth rates from 1% to 4-6%.

Regarding Taiwan energy stocks, I see several noteworthy targets. Delta Electronics (2308) is a leader in power electronics, with high-power-density AI servers driving a surge in orders, and automotive electronics also accelerating growth. 75% of the top 20 global automakers are their clients. Hua Cheng Electric (1519) is a long-term partner of Taipower, benefiting from Taipower’s 564.5 billion TWD grid upgrade plan, and is also a leader in Taiwan’s EV charging station industry, with nearly 20% market share.

If looking at traditional new energy directions, United Renewable Energy (3576), as a solar cell leader, expects gross margin to rebound in 2026, with overseas module shipments projected to grow over 15%. Shing Ye (4733) is a leading wind turbine blade material supplier; Taiwan’s offshore wind phase 3 is accelerating, with order backlog exceeding 10 billion TWD, and revenue growth is expected to reach 18%. Yuan Jing (6443) focuses on high-efficiency heterojunction and TOPCon products, with high overseas order visibility, and expects annual revenue growth of 12-15%.

In the US stock market, Constellation Energy (CEG) is the largest nuclear operator in the US, holding about 20% of the country’s nuclear capacity. In 2025, they signed a 20-year contract with Microsoft to restart Three Mile Island nuclear plant, with stable cash flow and attractive dividends. Eaton (ETN) is a leader in grid automation; transformer lead times have extended to 24 months, and the grid business is expected to grow over 25% in 2026. GE Vernova (GEV) covers high-voltage transformers and HVDC transmission, benefiting from global grid upgrade investments, with projected revenue growth of 15-18% in 2026. NextEra Energy (NEE), the largest renewable energy company in the US, has stable dividends and an EPS annual growth of 8-10%, balancing the volatility of AI power stocks.

Honestly, the risks in the new energy sector are indeed high—technological iteration failures and supply chain bottlenecks are variables—but the long-term return potential is equally significant. My suggestion is to allocate 50-60% of your portfolio to AI-related power stocks, 30-40% to traditional energy stocks as a defensive measure, and the remaining 10% in cash or bonds as buffers. Avoid chasing highs; view short-term dips within the long-term upward trend as opportunities to add. Key indicators to monitor include AI capital expenditure, grid investment scale, and order backlog—these are leading indicators.

The new energy cycle is long, and bear markets are often accompanied by policy winter; however, every downturn is a starting point for a long-term bull. In the context of the AI era and the global net-zero transition, 2026 to 2030 will be the most promising structural opportunity window for Taiwan’s energy stocks. At this moment, it’s not about chasing hype but about securing order certainty and rigid demand.