Despite U.S. President Trump canceling multiple government programs aimed at supporting wind energy, solar energy, and electric vehicles, green stocks have become one of the most profitable investments this year.

The latest data shows that the S&P Global Clean Energy Index has surged over 50% since the beginning of this year, far exceeding the less than 20% increase in the MSCI World Index during the same period.

This rally has been primarily driven by two factors: the seemingly insatiable demand for electricity from data centers powering artificial intelligence, and the firm determination of countries like China to build a low-carbon economy. Analysts point out that these robust economic fundamentals have now taken precedence over Trump’s frequent rhetoric about the so-called ‘green hoax.’

AI and the Green Economy Become Dual Engines

Analysts believe that investors should not overly focus on U.S. political rhetoric but instead look at the flow of global capital.

According to Aniket Shah, Head of Global Sustainability and Transformation Strategy at Jefferies, global spending in the low-carbon sector reached a staggering $2 trillion last year, signaling that the green economy is at an ‘excellent moment.’

At the same time, he believes that $Amazon (AMZN.US)$ 、 $Microsoft (MSFT.US)$ and $Alphabet-C (GOOG.US)$ The investments made by “hyperscale” tech companies like Google-C into AI represent “a sustainable growth story” in themselves.

Large asset management firms have already expressed optimism through their actions. Brookfield Asset Management recently raised $20 billion for its clean energy transition fund and agreed to invest up to $5 billion to deploy Bloom Energy’s fuel cells in new AI data centers.

Executives at Apollo Global Management also predicted that the energy demand gap caused by AI “cannot be filled within our lifetime.”

The Surge and Controversy of Star Stocks

In this market rally, Bloom Energy, a manufacturer of fuel cell systems, has stood out with its stock price surging nearly 500% year-to-date. The deployment time for their products can be as short as 90 days, aligning perfectly with the urgent power needs of AI data centers.

According to reports, Bloom Energy agreed in July to provide on-site power for Oracle’s AI data centers and plans to double its manufacturing capacity by the end of 2026. RBC Capital Markets analyst Christopher Dendrinos stated, “Their product fits extremely well with the demand dynamics of AI data centers, which is a major driver for the stock price.”

However, not everyone agrees with its high valuation. Analysts at Bank of America noted in a client report in September that Bloom Energy’s “fundamentals cannot support” its stock price increase.

In response, Michael Tierney, the company’s head of investor relations, stated that the company’s valuation is based on robust expectations of power demand and continuously improving financial performance, with revenue projected to grow by over 30% this year to nearly USD 1.9 billion.

Bubble Warnings and Market Disagreements

On the other side of the market, concerns about a bubble are mounting. Tim Bachmann, a portfolio manager at DWS, an asset management arm of Deutsche Bank, warned investors to prepare for a potential “Deepseek moment”—the emergence of more energy-efficient AI technologies that could disrupt current assumptions about energy demand.

Alex Monk, a portfolio manager at Schroders, also believes that if the AI bubble bursts, the alternative energy sector could be negatively impacted.

Deirdre Cooper, head of sustainable equities at Ninety One Plc, stated that the company is ‘carefully steering clear of the hype,’ as some clean technology stocks have evidently ‘been caught up in the speculative end of AI trading.’

Renaud Saleur, founder of Geneva-based hedge fund Anaconda Invest, was more direct, noting that some of the top-performing stocks are ‘not truly high-quality’ and questioning the feasibility of meeting AI’s energy demands, suggesting it may ultimately ‘lead to significant disappointment.’

Editor /rice