AI buildout has a potential problem, and many investors are still looking in the wrong place for a fix. Nuclear gets the headlines. Solar and batteries get subsidies. But the fastest, cheapest new energy source hitting the grid right now is one that most portfolios don't have at all: geothermal.
That gap is exactly what matters. Dylan Jovine, CEO of Behind the Markets, says that every major technology cycle is driven by energy, and this one is no different. He put the whole issue in his dedicated report on geothermal energy, and the short is that the demand for the data center exceeds the grid, the companies that solve that problem were first placed in a position to hold a large amount before Wall Street reached it.
Why the AI Race Is Really a Power Race
Hyperscalers need power now, not in ten years. Nuclear plants can cost upwards of $14 billion and take years to get approved, putting them years away from meeting today's data center workloads. Geothermal energy projects, by contrast, can come online at a fraction of that cost and in a fraction of the time.
Jovine frames it in geopolitical terms, too. China is leading the way in battery and clean energy production, while the United States still holds the edge in oil and gas infrastructure built over a century. Geothermal, in his view, is one of the few energy sectors yet to be captured, which is why the fastest-moving companies right now are worth more than the headlines suggest.
That's math and hence the Alphabet NASDAQ: GOOGLNVIDIA NASDAQ: NVDA and Berkshire Hathaway NYSE: BRK.B they have been signing multi-billion dollar geothermal deals with little public attention. The technology draws on heat from the earth's core, consistent resource and commodity prices and produces a cleaner emissions profile than coal or gas. It hasn't had its time in the title yet.
Fervo Energy Closes Billions Before Earning a Dime
Fervo Energy today
As of 12:03 PM Eastern
- 52 week interval
- $23.10
▼
$42.65
- Target Value
- $46.25
Fervo Energy NASDAQ: FRVO went public earlier this year and, like many new IPOs, has spent recent months dealing with listing volatility as selling pressure related to early closings works its way out of the stock. That volatility means little about the underlying business.
What stands out is the list of customers. Fervo has already secured contracts with Google and other major technology players tied to its Cape Station project in Utah, with additional plants expected to come online in 2026 and 2027. Jovine expects those contracts to start flowing through an earnings statement in the back half of 2026, which he argues could force a re-rating as the stock moves away from the issue with another-backed gains. He puts the window for that change at 12 to 18 months, a timeline he sees as the best to track.
Ormat Technologies Shows What Fervo Can Be
Ormat Technologies Today
Ormat Technologies
- 52 week interval
- $84.13
▼
$146.39
- Dividend Yield
- 0.44%
- The P/E ratio
- 53.02
- Target Value
- $131.67
Ormat Technologies NYSE: ORA has been building geothermal plants for years, and its results provide a preview of where a mature operator might live. The company has been growing its top line by about 50% and its bottom line by about 30%, proof that hyperscaler demand for geothermal power is translating into real financial performance, not just headlines.
Shares have retreated from their 2026 highs, which could make for an attractive entry for investors who missed the start.
Jovine sees Ormat's larger, more established hyperscaler contract as a preview of where Fervo could be in a few years, and he views scale and a decade-long track record as Ormat's real edge when hyperscalers choose long-term energy partners.
Baker Hughes Sells Building Materials
Baker Hughes Today
Baker Hughes
- 52 week interval
- $38.37
▼
$70.41
- Dividend Yield
- 1.60%
- The P/E ratio
- 18.32
- Target Value
- $70.09
Not all geothermal investment options mean choosing an operator. Baker Hughes NASDAQ: BKR provides the drilling technology and equipment that companies like Fervo rely on to build new plants, giving it exposure to the growth of the entire sector rather than the risk of a single project.
Stocks have fallen sharply this year along with broader swings in developing sectors, and Jovine says the stock now trades at a discount to underlying earnings. He puts it as a classic value setup, a pick and shovels in a growing niche trade under the value of this opportunity.
What Investors Should Watch Next
Geothermal doesn't need to replace nuclear or solar to matter. It just needs to keep winning contracts every time a hyperscaler needs power quickly and cheaply. The risk is execution: drilling projects can run into delays, and new entrants like Fervo still carry greater uncertainty than established names like Ormat. It is also worth remembering that this is not a winner-take-all race. The demand for energy is so great right now that many energy sources, from geothermal to natural gas to solar, are all finding consumers at the same time.
The good thing is that almost no one is putting a price on this yet. Stay focused on how quickly these contracts turn into reported revenue, because that's ultimately what will move these stocks.
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