Chevron, Engine No. 1 and GE Vernova Join Forces to Power AI

Group 1: Chevron's Initiative - Chevron Corporation (CVX) has partnered with Engine No. 1 and GE Vernova to develop natural gas power plants to meet the energy demands of AI-driven data centers, aiming for a multi-gigawatt-scale power plant co-located with the data center [1] - The partnership plans to leverage seven GE Vernova 7HA natural gas turbines to generate approximately 4 gigawatts of electricity, enough to power 3-3.5 million U.S. homes by the end of 2027 [6] - The initiative is part of a broader strategy to secure AI leadership and restore America as an industrial superpower by addressing energy challenges associated with AI advancements [5] Group 2: AI Competition and Infrastructure Investment - The competition in artificial intelligence between the United States and China is intensifying, highlighted by the launch of DeepSeek's AI chatbot, which aims to rival OpenAI's ChatGPT [2] - President Donald Trump approved an executive order to advance America's AI initiative, including the formation of a joint venture called Stargate, which will invest about $500 billion in AI infrastructure [3][4] - Stargate is expected to start with an initial investment of$100 billion and has the potential to increase to five times that amount, focusing on building new data centers in Texas [4] Group 3: Market Position and Alternatives - Chevron is one of the largest publicly traded oil and gas companies globally, with a Zacks Rank of 3 (Hold) [7] - Investors in the energy sector may consider better-ranked stocks such as ARC Resources Ltd. (AETUF), Equinor ASA (EQNR), and Gulfport Energy Corporation (GPOR), with AETUF and EQNR holding a Zacks Rank of 1 (Strong Buy) [8] - ARC Resources has an expected EPS growth rate of 50.78% for the next year, while Equinor's expected EPS growth rate for the next five years is 5.30% [9][10]