3 Renewable Energy Stocks to Buy Now: May 2024

As the world fights to go green, investing in renewable energy stocks makes sense.

Look at First Solar (NASDAQ:FSLR). In early April, I highlighted an opportunity in solar stocks that were trading around $163. Today it is approximately $277.

That’s thanks to the news that it’s well-positioned to benefit from growing electricity demand from AI giants looking for clean energy for their data centers.

In fact, according to CNBC:

“According to UBS, artificial intelligence uses 10 times more electricity than traditional Google search. As demand for electricity increases from artificial intelligence Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT), Meta (NASDAQ:UNDERWORLD) I Alphabet (NASDAQ:GOOG) The Google unit has committed to purchasing renewable energy equivalent to its consumption.”

This news alone could take FSLR to greater heights.

Or look Cameco (NYSE:CCJ), which continues to benefit from growing demand for uranium. From a March low of around $39, it is now at $53. Even copper stocks rose following President Biden’s recent tariffs on China, such as: Freeport McMoRan (NYSE:FCX).

Beyond these three, here are some of the best renewable energy stocks to buy and hold.

NexGen Energy (NXE)

Last time I mentioned NexGen Energy (NYSE:NXE), its price on May 15 was USD 7.25. After testing the high at $8.14, the price fell along with the broader market. However, given that the uranium situation is hotter than ever and demand outstrips supply, it is still a solid pick for the long term. It also benefits from the news that Congress has banned the import of uranium from Russia.

According to Energy.gov, this ban “brings us one step closer to developing a reliable supply of nuclear fuel that the United States and its allies will need to triple their nuclear capabilities by 2050.” As a result, the U.S. government is reported to be asking uranium companies to bid for contracts for domestically produced nuclear reactor fuel worth approximately $3.4 billion.

We must also remember that the company’s CEO Leigh Curyer “underlined the growing appreciation of nuclear power and the need for new sources of uranium, positioning the Rook I project as a key supplier,” as Investing.com noted.

Southern Copper (SCCO)

We can also jump into the copper rally, which should continue to rise Southern copper (NYSE:SCCO).

Supply and demand issues and new Chinese tariffs have made the mining company more relevant. But thanks to artificial intelligence, it can race even higher.

After all, copper wires and power cables are essential for electrical companies that are seeing greater energy demand in AI data centers.

Moreover, Gavekal Research analyst Tan Kai Xian had this to say about the reasons behind the rise in copper prices and utility stocks:

“Electrifying everything, whether that is replacing hydrocarbons as the primary fuel source or using energy-intensive cloud computing to power all aspects of our economy and lives.”

Copper is also driving demand for renewable energy and electric vehicles, according to the data Bank of America (NYSE:TANK) analysts. In the case of SCCO, I would use the recent weakness as an opportunity to buy and hold for the long term.

Albemarle (ALB)

Whenever I talk about renewable energy, I like to include lithium stocks, e.g Albemarle (NYSE:ALBA) into the mix. Eventually, lithium will be in high demand, which will have a positive impact on ALB.

Please note that according to Statista, global demand for lithium will exceed 2.4 tons by 2030, doubling the demand forecast for 2025.

They added that demand could reach 3.8 million tonnes by 2035. Lithium demand could then increase more than 40-fold by 2040 on expectations of increased use of electric vehicles and energy storage needs.

Moreover, by waiting for ALB to increase, we can collect its yield of 1.25%.

Moreover, the company has just announced a dividend of 40 cents, which will be payable on July 1 to shareholders of record as of June 14. Moreover, Deutsche Bank analysts just raised their price target for ALB to $140 with a hold rating. RBC Capital also raised its target to $157, earning an outperform rating on strong earnings.

As of the date of publication, Ian Cooper did not hold (directly or indirectly) any positions in the securities indicated. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s Editorial Guidelines.