Natural gas prices are at record highs, and data centres continue to demand the commodity in large quantities.
Bobby Hollis said that Microsoft was willing to use natural gases with carbon capture technology in order to power its artificial-intelligence server farms.
Hollis’ comments on CNBC today bode well to natural gas investors, as the continued demand from AI firms could push natural gas costs higher in 2025.
The demand for natural gas is increasing fast
Natural gas is a great investment for this year, as data centres will require up to 660 Terawatt-hours of power per year by 2035.
This is about 10% of current global electricity demand.
Toby Rice, CEO of EQT and the largest pure-play natural gas producer in the United States, told CNBC that the market was screaming for more energy.
Rice expects natural gas prices to continue to rise as the world continues its shift from coal to gas for electric power production.
EQT’s stock is still down about 10% from its year-to date high as of this writing.
EQT stocks outperform AI names
Toby Rice, CEO of Toby Rice Corporation, expects that continued focus on artificial intelligent will serve as a significant catalyst for natural gas price for the long-term.
In fact, this correlation is so strong that investors are now seeing EQT as an AI stock.
“We welcome all investors that see the value in natural gas.” In the CNBC interview of March 10 th, he said that the value of gas will not only be determined today but also in decades to come.
Investors should be aware that EQT shares are in the black (year-todate) despite a broader selling-off of AI stocks which has pushed the S&P 500 downwards by about 10% over the last three weeks.
EQT also pays a dividend yield 1.28%.
Should you invest today in EQT?
EQT’s financial strength may also make it worth buying at its current price.
In February, the company reported earnings that exceeded Street expectations.
EQT’s recent quarter saw earnings of 69c per share on adjusted operating revenue of $1.82b, exceeding analysts’ expectations of 50c per share and $1.72b in revenue.
Wall Street is still bullish on EQT’s shares.
Analysts rate the New York-listed firm as “overweight” at present.
The average price target for EQT is currently $55.56, which represents a potential gain of approximately 13% over current levels.
This post Is Natural Gas a “Buy” as Microsoft claim it could power AI This post may be updated as new information becomes available
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