5 Alternative Energy Stocks Riding the AI Power Crunch

Several powerful market themes have already taken hold in 2026, producing outsized winners across multiple sectors. The memory chip shortage, for instance, has reignited explosive momentum in the sector this year, with names like SanDisk (NASDAQ: SNDK) picking up right where they left off last year. SanDisk is now the top-performing stock in the S&P 500, already up nearly 100% year-to-date.

Aerospace and defense have also been front and center. Stocks like Rocket Lab (NASDAQ: RKLB) and FTAI Aviation (NASDAQ: FTAI) have delivered impressive double-digit gains early in the year as global defense spending and commercial aviation demand remain elevated.

But while those two sectors have captured most of the headlines, another area of the market has been building momentum of its own: alternative energy.

A growing group of alternative energy stocks has begun to outperform the broader market, supported by a powerful and increasingly unavoidable narrative, the rapid acceleration of electricity demand driven by artificial intelligence.

AI Is Creating a Power Crunch

Momentum in alternative energy stocks didn’t start this year. It began to build during the second half of last year, when investors started to appreciate just how power-intensive artificial intelligence really is.

AI data centers are massive consumers of electricity. As hyperscalers race to expand capacity, and as companies reshore manufacturing operations back to the U.S., electricity demand is rising far faster than legacy infrastructure was designed to handle. The result is an emerging power crunch.

Unlike prior energy cycles, this demand surge is not being met by a single favored source. Instead, everything is needed, from traditional generation, renewables, nuclear, hydrogen, battery storage, and distributed on-site power solutions. That reality has created a unique setup for alternative energy companies operating across infrastructure, storage, and next-generation power technologies.

As a result, several alternative energy stocks have developed powerful upside momentum, significantly outperforming the market over the past year and continuing to lead in early 2026.

Here are five alternative energy stocks experiencing impressive momentum that momentum traders and investors should have on their radar.

Bloom Energy: The Standout Momentum Leader

Bloom Energy (NYSE: BE) has firmly established itself as one of the most powerful momentum names in the alternative energy space. Following triple-digit gains in 2025, shares have surged another 67% already in 2026, pushing the stock’s one-year return to an eye-catching 467%. Bloom Energy now carries a market capitalization of $34.2 billion and is a member of the Russell 2000 Index.

Bloom develops solid-oxide fuel cell systems for on-site power generation. These systems convert natural gas, biogas, or hydrogen into electricity with lower carbon emissions and high reliability. The company’s flagship product, the Bloom Energy Server, offers enterprises a grid-independent power solution, an increasingly valuable proposition as grid strain and reliability concerns grow.

Fundamentally, the company’s execution has helped justify the market’s enthusiasm. In its Q3 2025 earnings report, Bloom posted EPS of 15 cents, beating consensus estimates of 8 cents by a wide margin. Revenue surged 57.1% year-over-year to $519.05 million, also well above expectations.

Looking ahead, Bloom is scheduled to report Q4 earnings on February 5. Analysts expect EPS of 31 cents, down year over year due to higher investment spending, while revenue is projected to rise 13% to roughly $649 million.

While analysts currently rate the stock a Hold, expectations are rising. A strong earnings report and upbeat guidance could force a broader re-rating. That said, investors should be mindful of valuation risk. Bloom trades at a forward P/E north of 130, leaving little room for disappointment after such a powerful run.

T1 Energy: Small-Cap Momentum With Big Ambitions

T1 Energy (NYSE: TE) sits on the smaller-cap end of the spectrum, with a market capitalization of nearly $2 billion, yet its momentum profile rivals that of much larger peers. The company focuses on building domestic solar and battery supply chains in the U.S., emphasizing scalability, reliability, and cost efficiency. The company develops energy storage systems and battery solutions designed to support both grid infrastructure and commercial mobility.

Despite the lack of profitability, shares have delivered impressive returns. The stock is up 27% year-to-date and more than 300% over the past year, reflecting strong investor appetite for high-growth, speculative energy infrastructure plays.

In its most recent earnings report, T1 posted Q3 2025 revenue of $210.52 million, beating expectations and representing a sharp increase from Q2 revenue of $132 million. The company remains in a heavy investment phase, but top-line momentum is clearly building.

Wall Street appears constructive. The stock carries a Moderate Buy consensus rating based on seven analyst opinions, signaling confidence in the company’s long-term growth trajectory despite near-term losses.

Clearway Energy: Momentum With Income

Clearway Energy (NYSE: CWEN) offers a different angle within the alternative energy space: momentum paired with income. The mid-cap company, with a market capitalization of $7.3 billion, owns and operates a diversified portfolio of contracted renewable and conventional generation assets, as well as thermal infrastructure. Its segments include renewable generation, conventional power, and corporate energy services.

The company's standout feature is its dividend. The stock currently yields 5.05%, supported by a payout ratio near 77%. That income component has helped attract investors during periods of market volatility. Performance has been solid. Shares are up nearly 8% year-to-date and roughly 46% over the past year, excluding dividends. When income is included, total returns become even more compelling.

Analysts rate the stock a Moderate Buy, with a consensus price target near $37.71, implying modest upside from current levels. Clearway may not deliver the explosive upside of smaller momentum names, but it offers a steadier way to gain exposure to rising power demand.

Amprius Technologies: High-Risk, High-Momentum Battery Play

Amprius Technologies (NYSE: AMPX) is a small-cap name best suited for investors with higher risk tolerance. The company, with a market capitalization of roughly $1.46 billion, focuses on advanced silicon-anode lithium-ion batteries designed to deliver significantly higher energy density. Its technology targets applications across aviation, electric vehicles, and light electric mobility.

After gaining well over 160% in 2025, the stock has added another 42% in 2026, continuing its strong momentum trend. Financially, Amprius remains early-stage. In Q3 2025, the company reported revenue of $21.4 million and a loss of 3 cents per share. Despite limited revenue, Wall Street remains optimistic, assigning the stock a Moderate Buy rating and a consensus price target that implies 43% upside potential.

Institutional flows support that optimism. Over the past 12 months, Amprius has seen $216 million in inflows versus just $13.75 million in outflows. That’s a notable vote of confidence in the company’s technology and long-term potential.

Babcock & Wilcox: Extreme Momentum, Elevated Volatility

Babcock & Wilcox (NYSE: BW) rounds out the list as one of the most volatile and most powerful momentum movers in the alternative energy space. Given the company's market capitalization of $1.05 billion, increased volatility and momentum can be expected. 

BW provides energy and environmental technologies serving power generation and heavy industrial markets. Its offerings include boilers, emissions-control systems, and aftermarket services supporting both fossil-fuel and renewable facilities.

The stock’s performance has been nothing short of relentless. Shares are up 49% year-to-date, pushing one-year gains to an astonishing 525%. Technically, the stock has repeatedly consolidated and broken higher, offering momentum traders and investors multiple opportunities within its higher timeframe uptrend.

However, despite the impressive technicals, the fundamentals remain mixed. In Q3 2025, Babcock posted EPS of negative 6 cents, beating estimates, but revenue of $149 million fell short of expectations. Despite that, the stock surged to new 52-week highs following the report. Perhaps a reminder that price action and momentum, not fundamentals, are currently driving the story.

Power Demand Is Reshaping the Alternative Energy Landscape

Alternative energy has firmly emerged as one of the strongest momentum themes in the market, fueled by AI-driven electricity demand and structural power constraints.

From large-cap sector leaders like Bloom Energy to high-risk innovators like Amprius and Babcock, investors now have a wide range of ways to gain exposure. While valuations are certainly elevated across the group, momentum remains firmly intact. And as long as AI continues to strain global power infrastructure, the sector’s tailwinds appear far from exhausted.

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