As the year comes to an end, investors are beginning to look for three energy stocks to own for 2025…
I’m not going to lie. This was a hard one to whittle down to just three. But indeed, the three I’m going to share with you today should provide you with some very impressive gains next year. Although, to be honest, it’s going to be hard to lose on energy next year.
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We already know that global electricity demand will double in the next 25 years. This, mostly as a result of increased demand coming from data centers, crypto mining operations, and AI applications. But what a lot of people don’t realize is that most of this new demand will be supplied by renewable energy.
According to risk management firm DNV, by 2040, wind and solar sources will be responsible for 50% of all global electricity generation. To put that in perspective, today it’s around 14%.
And by 2050, DNV predicts that 82% of all electricity will come from renewable sources.
“Nuclear will constitute just 6% of electricity generation by 2050. That leaves just 12% of the world’s electricity coming from fossil sources by 2050. Although these changes will play out differently across the world’s regions. A snapshot of regional power mixes in 2040 illustrates this. By 2050, all regions are well above the 50% mark for solar and wind in their power mixes. Just North East Eurasia still heavily reliant on fossil-fired generation.
This remarkable expansion and decarbonization of power is driven both by policy and dramatic and ongoing reductions in the costs of wind and solar generation. The levelized cost of energy (LCOE) for solar generation will halve between now and 2050, making solar the cheapest source of electricity at some USD 21/MWh. The LCOEs for wind are expected to drop by 44% (onshore), 36% (offshore fixed), and 75% (offshore floating) by 2050.”
Bloomberg, the EIA, the IEA — they all have similar projections. Each clearly showing that fossil fuel-based electricity generation is either plateauing or plummeting over the next couple decades. This, while solar, wind and battery backup storage continue to expand rapidly.
Indeed, the data are clear. The future of electricity generation will be heavily weighted in renewables. And long-term energy investors would be foolish to ignore that reality. So here’s a list of 3 energy stocks to own for 2025.
Top 3 Energy Stocks to Own for 2025
To be clear, the first isn’t really an energy stock. It’s actually a company that provides a key material for solar, wind, and all electricity transmission and distribution: copper.
Take a look at this chart…
Indeed, it is a beautiful chart for copper investors. And this is the result of a very real demand increase for copper well into 2035.
In fact, as reported in the Financial Times, copper miners are now predicting an industry overhaul as end users rush to secure supply.
“The world’s largest copper miners predict closer collaboration with end users from carmakers to utilities, upending a hitherto fragmented supply chain as shortages of the metal crucial to green technologies are set to flare up in the years ahead. Executives at leading mining groups see increasing signs of a shift to direct deals with cable manufacturers and other big buyers to secure supply of the “metal of electrification” at an affordable price.”
Aside from a softer outlook in China, which has pressured copper prices recently, the long-term outlook for copper remains strong.
According to Bloomberg, global copper consumption is likely to be 2 million tons higher by 2030, with over half from the U.S., as power-hungry AI fuels data-center capacity growth. I think it’ll be slightly higher. Not that it matters. Because no matter how you slice it, the demand for copper is a lock. And this is why Freeport McMoRan (NYSE: FCX) is one of my top 3 energy stocks for 2025.
FCX is one of the largest diversified mining companies in the world. It also has one of the largest footprints in the U.S. in terms of copper.
The company operates seven different copper mines in Arizona and New Mexico. These mines account for more than half of the company’s 235 billion pounds of copper resources. U.S. operations are expanding, too.
At its Lone Star Mine in Arizona, the company is expecting to increase overall production from 250 million to as much as 300 million pounds per year. And at its copper mine in Tyrone, NM, FCX is moving forward on new permits for an addition that will contribute up to five years worth of copper resources and extend the facility’s life beyond 2027. That facility currently produces more than 82,000 tons of copper cathode per year.
My one-year price target on FCX is $61 per share.
Another company that’s taking full advantage of the increased demand for renewable energy is GE Vernova (NYSE: GEV).
GE Vernova is an energy equipment manufacturing and services company. It was formed from the merger and subsequent spin-off of GE’s energy businesses in 2024.
The company operates four segments…
- Power, which includes natural gas, hydropower, steam power and nuclear power.
- Wind, which includes offshore wind, onshore wind, and wind turbine blades.
- Electrification, which includes software, grid solutions, power conversion and solar and storage solutions.
- Accelerators, which includes financial services, research and consulting services.
Although GE Vernova isn’t a pure play renewable energy stock, I like it because it generates enough revenue from its renewable energy offerings to make it a major player in the space. This, while still having some vital diversification in the natural gas and nuclear markets.
Although the majority of new electricity demand will be met with renewables, nuclear and natural gas will continue to play a role. Particularly in the case of GE Vernova, which still generates a significant chunk of its revenue from its natural gas and gas-related assets and services.
Overall, GE Vernova is a play on the rapidly growing demand for electricity. It’s well-diversified, well-funded, and the stock has been on fire this year.
The last of my top 3 energy stocks to own for 2025 is Enphase (NASDAQ: ENPH).
Enphase Energy is the largest supplier of microinverter-based solar and battery systems in the world. And despite the stock being down about 35% for the year, it’s still a solid stock to own. That is, if you find the data on solar growth to be sound. Which we do.
Last week, the company announced disappointing earnings. It missed revenue estimates by 3.3% and EPS by 14%. But we expected this. High interest rates this year, coupled with an economic slowdown in China, made it difficult for most solar stocks to perform well in 2024.
However, next quarter’s earnings should reflect lower interest rates as well as a slight increase in installations in China. Given that ENPH is currently trading at a discount of around 20%, now would be a good time to grab a few shares.
Of course, I realize that not everyone is keen on energy investing right now. Why that is, I have no idea. Energy will remain hot in 2025. But if you’re looking for something not related to energy, check out this new bitcoin loophole strategy that our Energy & Capital team recently uncovered.
If you’re unfamiliar, this strategy allows you to tap into the meteoric growth of bitcoin without actually having to own any of it. Based on recent returns, this is the kind of thing that can turn $5,000 into more than $348,200. And if you don’t believe it, just look at the numbers for yourself.
To a new way of life and a new generation of wealth… Jeff Siegel
@JeffSiegel on Twitter
Check us out on YouTube!Jeff is the founder and managing editor of Green Chip Stocks. For more on Jeff, go to his editor’s page.
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