Missed Nvidia in 2009? This Rare Signal Is Flashing Again.\u00a0In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia.\u00a0For the first time in years, that same “Total Conviction” signal is flashing for a company 1\/100th the size of Nvidia.\u00a0Continue \u00bb<\/a> <\/p>\n There’s just one problem. Regulated electric utilities pass on spending to consumers through rate increases. Rate increases have to be approved by regulators. With inflation running high and electricity costs already on the rise, there has been a pushback against AI investments. That could put pressure on utilities if they aren’t allowed to pass on all of their capital investment costs. <\/p>\n The best choice for investors may actually be to focus on companies that can provide power outside of the regulated framework. But you have to be careful as you make your final investment decisions. <\/p>\n Make sure to consider valuation when you buy <\/p>\n For example, Bloom Energy (NYSE: BE) makes hydrogen fuel power cells. These are factory-built and can easily provide dedicated power to an AI data center. The company started 2026 with a $6 billion backlog for its fuel cells, up 2.5x year over year. It is well-positioned to serve AI customers. But there’s an even bigger backlog to consider for services, since each new fuel cell comes along with a service contract. Indeed, the total backlog stands at a huge $20 billion. <\/p>\n The only problem is that Bloom Energy stock has risen more than 1,000% over the past year. The company hasn’t yet produced sustainable profits, so earnings aren’t particularly useful for valuation. However, the price-to-sales ratio is a shockingly high 29x. It appears that Wall Street is already pricing a great deal of future success into Bloom Energy’s stock price. <\/p>\n Story Continues <\/p>\n Brookfield Renewable Partners (NYSE: BEP) could be a more attractive option, particularly for dividend investors. The partnership owns a globally diversified portfolio of renewable power assets, including solar, wind, hydroelectric, storage, and nuclear. It sells power to other companies under long-term contracts. AI is expected to be a big demand driver, noting that the company already has contracts to sell power to Microsoft (NASDAQ: MSFT) and Google. <\/p>\n The distribution yield is roughly 4.5%, and the goal is to increase the distribution by 5% to 9% annually. Given the partnership structure, earnings aren’t particularly useful here, either. But the P\/S ratio is a far more reasonable 1.6x. And investors get to collect a growing income stream along the way. Brookfield Renewable’s units are up around 35% over the past year. <\/p>\n A middle ground option is NextEra Energy (NYSE: NEE). It is one of the world’s largest utilities, but it also has a large and growing renewable power business. The renewable power business sells power under long-term contracts, as does Broofield Renewable. The stock is up 25% over the past year, and its 22.5x price-to-earnings ratio is below its five-year average of 27x. (For reference, the P\/S ratio is 6.6x) While the stock doesn’t look cheap, per se, it looks reasonably priced compared to its own history. <\/p>\n Looking forward, NextEra Energy is leaning into AI and data centers with the proposed acquisition of Dominion Energy (NYSE: D). Dominion operates in one of the world’s largest data center markets, Virginia. That said, the company’s growth engine is most likely to be contracted renewable power. Overall, NextEra expects earnings to grow at around 9% a year after the acquisition, with dividends likely to grow at around 6% a year. The yield is around 2.8%. <\/p>\n Plenty of options, but make sure you are selective <\/p>\n Bloom Energy is a great business and well-positioned to benefit from AI’s growth. The problem is that Wall Street is well aware of the story and has priced the stock accordingly. Most investors will likely be happier with Brookfield Renewable or NextEra Energy. They are each set to benefit from AI’s growth, but have more reasonable valuations and provide an instant return via reliable dividends. <\/p>\n Should you buy stock in Bloom Energy right now? <\/p>\n Before you buy stock in Bloom Energy, consider this: <\/p>\n The Motley Fool Stock Advisor analyst team just identified what they believe are the\u00a010 best stocks<\/a> for investors to buy now\u2026 and Bloom Energy wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. <\/p>\n Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you’d have $418,761!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,195,804!* <\/p>\n Now, it’s worth noting\u00a0Stock Advisor’s total average return is 918% \u2014 a market-crushing outperformance compared to 208% for the S&P 500.\u00a0Don’t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built by individual investors for individual investors. <\/p>\n See the 10 stocks \u00bb<\/a> <\/p>\n *Stock Advisor returns as of July 4, 2026. <\/p>\n Reuben Gregg Brewer<\/a> has positions in Brookfield Renewable Partners. The Motley Fool has positions in and recommends Bloom Energy, Microsoft, and NextEra Energy. The Motley Fool recommends Brookfield Renewable Partners and Dominion Energy. The Motley Fool has a disclosure policy<\/a>. <\/p>\n<\/a> Image source: Getty Images. <\/p>\n