UBS says this battery systems company is an 'under-appreciated beneficiary' of the AI-driven data center boom

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Fluence Energy Inc,Stock Markets,Investment Strategy

This battery systems stock could grow alongside the rise of AI data center demand, the firm said.

Investors looking for new ways to capitalize on artificial intelligence should look at Fluence Energy , according to UBS. "FLNC is an under-appreciated beneficiary of increasing AI data center driven electricity demand as a leading supplier of utility-scale battery systems," analyst Jon Windham said. The firm reiterated its buy rating on the energy storage stock alongside a $32 per share price target. UBS' forecast implies nearly 38% upside from Tuesday's close.

mountain Fluence Energy stock. Fluence Energy is the second-biggest battery supplier at the utility level in the U.S. behind Tesla, UBS noted. Shares are about flat for the year, lagging the S & P 500's 10% jump. Data center demand has skyrocketed alongside the rise of AI and Nvidia. Data centers themselves are essential elements of powering AI systems, with UBS forecasting in April that demand could grow between 15% and 20% in 2024 alone.

 

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