Wall Street personalities and market watchers are closely monitoring coal stocks following unexpected industry dynamics, with CNBC’s Jim Cramer hinting at a potential sector resurgence.
What Happened: Cramer’s cryptic Wednesday post on X, questioning “And what if coal makes a comeback??? Stay tuned…”, preceded a notable decline in coal-related equities.
Major industry players like Peabody Energy Corp. BTU and Warrior Met Coal Inc. HCC experienced significant price corrections, with the Exchange Traded Concepts Trust Range Global Coal Index ETF COAL dropping 2.20%.
The potential shift comes amid President Donald Trump‘s aggressive energy infrastructure plans, which emphasize expanding domestic drilling and electricity production to support the burgeoning artificial intelligence sector.
Trump has pledged to unlock 625 million acres of offshore reserves valued at $50-$60 trillion, directly challenging existing environmental restrictions.
Why It Matters: Notably, the AI-driven energy transformation is sparking unprecedented electricity demand. The Department of Energy projects AI-related data center electricity consumption could triple within three years, forcing a reevaluation of traditional energy strategies.
Energy consultancy Enverus projects 80 new gas-fired plants will be constructed by 2030, adding 46 gigawatts of power capacity. This expansion represents a 20% increase over recent construction rates and signals a potential renaissance for fossil fuel infrastructure.
Major tech companies are already positioning themselves strategically. Meta Platforms Inc. plans to power a $10 billion AI data center through a $3.2 billion gas plant expansion exemplifies the industry’s current trajectory.
While renewable energy development continues, industry leaders argue that current battery technologies cannot match gas plants’ reliability for power-intensive AI operations.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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