Best stocks to buy in July and hold forever: GEV, NEE

Investors must own the stocks that will be long-term winners in the AI age, no matter how the technologies evolve and which big tech firms and hyperscalers grab the most market share.

Today we dive into why investors should think about buying AI energy standouts GE Vernova and NextEra Energy before they report their earnings results this week.

GEV and NEE are dividend-paying Zacks Rank #2 (Buy) next-generation energy stocks riding the AI-boosted energy and energy infrastructure spending spree that will be measured in decades and trillions of dollars.

GE Vernova reports before the opening bell on Wednesday, July 22, with NextEra Energy’s results out Friday, July 24.

Why Investors Must Buy AI-Boosted Energy Stocks Now

The U.S. electricity grid was already desperate for investment before the AI boom pushed it to the brink—especially in AI data-center hubs. Generative AI like ChatGPT uses 10X the energy of a Google search, and large data centers guzzle as much power as mid-sized cities.

AI growth, reshoring, and electrification are set to drive U.S. electricity demand up 25% by 2030 and 75% to 100% by 2050. Globally, companies will pour $7 trillion into data-center capex by 2030 (McKinsey), with $1.3 trillion aimed at energy.

The next decade will require more new energy generation than any period in U.S. history. That’s why the government is pushing to quadruple nuclear capacity by 2050, while Meta, Microsoft, and other giants partner with next-gen nuclear startups.

Natural gas is surging because it is reliable baseload power. Solar, batteries, and more are also gaining steam as part of an all-of-the-above race to bring more power online as quickly as possible.

Image Source: U.S. Department of Energy/EIA

Hyperscalers are spending hundreds of billions a year (heading toward trillions) on AI buildouts. Yet they’re struggling to lock in the long-term power deals their AI ambitions require.

Thankfully, big tech, Wall Street, and the U.S. government simply have too much at stake to let the AI age falter due to a lack of power. Therefore, companies such as GE Vernova and NextEra Energy stand to benefit from a wave of investment and long-term demand growth as the U.S. enters a new power-hungry phase of economic expansion. 

Buy GE Vernova Stock Now and Hold for AI Energy Upside

GE Vernova GEV is one of the most critical energy infrastructure and technology companies of the 21^st Century. GEV’s growing portfolio is full of everything that the AI hyperscalers and the growth-focused and increasingly electrified U.S. economy love, especially its highly efficient natural gas turbines and nuclear energy equipment and reactors.

GEV’s customers generate roughly 25% of global electricity via its installed base of technologies across natural gas, nuclear energy, electrification technologies, wind and more. It is leading the natural gas boom as hyperscalers race to bring more reliable round-the-clock power online as quickly as possible.

Long-term, GE Vernova is likely to be one of just a small number of winners in the next-generation small modular nuclear reactor industry. SMRs have blockbuster potential in a future where they directly power AI data centers and beyond.

Image Source: Zacks Investment Research

The energy equipment and technologies firm said in late 2025 that its “electrification backlog will double in the next 3 years.” GE Vernova added $13 billion to its backlog in Q1 to reach $163 ‌billion (up from $116 billion when it spun off), boosted by an 80% increase in its “equipment backlog at considerably better margins.”

GE Vernova expects its backlog to reach $200 billion by 2027, a full year earlier than its previous forecast. CEO Scott Strazik said on its Q1 earnings call that its “growth is just starting.” On top of all that, GE Vernova doubled its quarterly dividend for 2026 and raised its repurchase authorization to $10 billion from $6 billion.

GE Vernova is projected to post 19% sales growth in 2026 and 14% higher next year to reach nearly $52 billion. The energy infrastructure firm is expected to grow its adjusted earnings by ~74% in 2026, based on the most recent Zacks estimates.

Image Source: Zacks Investment Research

The AI energy stock has soared ~680% since its GE spin-off in April 2024, crushing Nvidia and tons of other pure-play AI stocks. GEV might be due for a healthy pullback since it has not tested its 200-day moving average since the tariff selloff in 2025, and it’s already jumped 65% YTD.

But market timing is very difficult, and a strong showing could easily help GE Vernova break out of its range to new all-time highs. Some investors might consider taking a starter position now and then adding to it the next time the nuclear and AI energy stock goes on sale.  

GEV reports before the market opens on Wednesday, July 22.

Buy NextEra Before Earnings for Growth, Upside, Value and Breakout Potential

NextEra Energy NEE is one of the biggest electric power and energy infrastructure companies in the world and one of the largest U.S. utilities.

NEE is one of the largest producers of wind and solar energy on the planet, a battery storage leader, and a nuclear energy player with big upside potential. Its Florida Power & Light segment “continues to operate and invest in the nation's largest gas-fired fleet,” which is an area that the AI hyperscalers such as Meta META love, alongside nuclear.

Image Source: Zacks Investment Research

Speaking of, NextEra late last year announced, “two transformative agreements with Google, which will strengthen U.S. nuclear leadership and help meet growing energy demand from artificial intelligence with clean, reliable nuclear energy.”

NextEra’s deal with Google GOOGL will help NEE restart the Duane Arnold Energy Center, Iowa's only nuclear facility. NEE then, in December, said it expects to add 15 gigawatts of new power generation for data centers by 2035 (and upwards of 30 GWs) via deals with Google, Meta, Exxon Mobil, and beyond.

Image Source: Zacks Investment Research

On top of the AI energy age credentials, NextEra is also one of just around 70 S&P 500 Dividend Aristocrats, meaning it’s paid and raised dividends for at least 25 straight years.

The energy giant is projected to grow its revenue by 16% in 2026 and 9% in 2027. It is projected to boost its adjusted earnings by 8% this year and another 9% next year. The chart above also showcases its strong longer-term earnings growth outlook.

Image Source: Zacks Investment Research

NextEra stock has surged 1,200% in the past 25 years to double the S&P 500 and blow away its sector’s 80%. Despite its run, NEE stock underperformed over the last five years, up just 15%.

Thankfully, the cooldown, coupled with its strong earnings growth outlook, has it trading at a ~40% discount to its peaks and in line with the benchmark at 20.9X forward 12-month earnings. A strong showing might also help NextEra push back up toward its recent all-time highs and then into a new trading range (see chart above)

NextEra reports before the opening bell on Friday, July 24.

This article originally published on Zacks Investment Research (zacks.com).