RBC Capital Markets downgraded solar energy company Enphase Energy (ENPH) to a Sector Perform rating as Big Tech inks more deals with nuclear energy developers to power their AI data centers. Most notably, Alphabet’s Google (GOOG, GOOGL) signed an agreement with Kairos Power.

Market Domination welcomes the analyst behind the call, RBC Capital Markets analyst Chris Dendrinos, to speak more about the solar energy landscape. Enphase seems to be finding heightened competition from Tesla (TSLA)

“What they’re [Tesla] doing is they’re adopting one of their new batteries. It’s the Powerwall 3, and that has an inverter and a battery included with it,” Dendrinos tells Julie Hyman and Josh Lipton. “And then on the market adoption side, we’re seeing a transition away from where a homeowner is going to outright own the solar system, and instead they’re going to lease it through a company, or they’re going to do what’s called a power purchase agreement, a PPA. And Enphase is underweight that segment as well.”

Dendrinos also explains to Julie Hyman and Josh Lipton the high demand for renewable energy to power these AI data centers and this recent pivot toward nuclear power.

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This post was written by Luke Carberry Mogan.