Duke Energy Corporation (DUK): A Bull Case Theory

We came across a bullish thesis on Duke Energy Corporation on Paradox’s Substack by PARADOX INTELLIGENCE. In this article, we will summarize the bulls’ thesis on DUK. Duke Energy Corporation's share was trading at $123.54 as of October 3rd. DUK’s trailing and forward P/E were 19.90 and 18.21, respectively according to Yahoo Finance.

Duke Energy (DUK) is a vertically integrated utility that manages the full spectrum of electricity operations, from generation to distribution, providing a stable and regulated return profile. The company is executing an $87 billion capital expenditure program aimed at expanding into high-growth markets, particularly data centers in Florida, positioning it to benefit from increasing demand for reliable power in hyperscale computing.

Strategic partnerships, such as with Brookfield, help manage capital requirements and de-risk the execution of this ambitious expansion plan. Duke Energy has significant exposure to hyperscalers through clean energy agreements and favorable tariff structures with major players like Amazon, Google, and Microsoft, allowing the company to capture long-term growth in the rapidly expanding cloud and data center sector. While the regulated utility model inherently limits upside due to rate-of-return caps, it provides strong downside protection, supporting stable cash flows and predictable earnings.

However, the company faces risks associated with regulatory lag and slower responsiveness to market dynamics, which can constrain profitability relative to unregulated peers and limit flexibility in capital deployment. Overall, Duke Energy represents a compelling risk-adjusted investment for those seeking exposure to essential infrastructure with long-term growth optionality through data center expansion, strong partnerships, and alignment with hyperscaler clean energy demand, while maintaining downside resilience through its regulated framework.

Its combination of stable regulated cash flows, targeted growth investments, and strategic partnerships creates a balanced risk/reward profile that is likely underappreciated in the current market, offering investors a durable, income-generating, and strategically positioned utility with multiple catalysts for long-term value creation.

Previously we covered a bullish thesis on Quanta Services, Inc. (PWR) by Bulls On Parade in April 2025, which highlighted the company’s leadership in electric power infrastructure and positioning to benefit from AI-driven data center growth. The company's stock price has appreciated approximately by 44% since our coverage. The thesis still stands. Paradox Intelligence shares a similar perspective but emphasizes Duke Energy’s regulated utility model and exposure to hyperscaler data center growth.

Duke Energy Corporation is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 57 hedge fund portfolios held DUK at the end of the second quarter which was 56 in the previous quarter. While we acknowledge the potential of DUK as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.