Hedgeye CEO Keith McCullough’s signal has nailed the bearish call on Natural Gas (UNG) which is down ~27% on the year. Our energy analyst Fernando Valle sees a bottoming out and likes the long-term growth for Natural Gas and Energy amid skyrocketing demand fueled by data centers and AI.
“When we do the math, if Nvidia reaches its sales targets on its next level GPU, those chips alone would consume more than a medium sized country,” explained Valle on The Call @ Hedgeye. “It’s a very significant increase in demand, and we just don’t have the grid infrastructure, or even the generation, to really make up for that.”
“Solar and wind are just not going to be the long-term solution to make up for all of our power needs. Especially if we are pushing for electrification, if we’re pushing AI, we’re going to need more sources of generation.”
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