By Doug Busch

As the AI revolution heats up, massive amounts of energy will be needed to power its relentless advance.

Last week, we spotlighted nuclear energy and today, it's natural gas taking center stage. Both are clean, crucial, and poised to fuel the surging global demand from AI infrastructure.

Despite natural gas facing recent headwinds, dragging down related stocks, the sector still holds compelling opportunities. Let's dive into three standout natural gas plays that look primed to capitalize on this evolving energy landscape.

EQT, one of the purest natural gas plays, has climbed 13% this year after it scored a billion dollar partnership in Pennsylvania. It's an impressive showing considering the Energy Select Sector SPDR exchange-traded fund remains essentially flat.

After briefly touching fresh 52-week highs in late June, the stock has since pulled back 14%, offering a potential entry point. The weekly chart below, dating back to the 2020 COVID lows, reveals a compelling technical picture. A three-year cup base formed between the round-number levels of $30 and $50 was decisively cleared in January.

Now, EQT is staging a textbook retest of that breakout zone, creating a favorable risk/reward setup. A move toward the $70 level remains in play by year-end. EQT closed Friday at $52.34, and traders can stay long with conviction as long as it holds above $46.

Expand Energy Corporation, born from the merger of Chesapeake Energy and Southwestern Energy, has gained an impressive 36% over the past year.

On the weekly chart, shares are hovering just above the very round $100 level. While a brief dip below that round number wouldn't be surprising, a potential retest of the longstanding double bottom breakout at $93.68, first cleared last November, looks like a logical technical setup.

A pullback entry near $96 offers a favorable risk/reward profile, especially with additional support layered around $90, which acted as firm resistance throughout late 2023 and early 2024.

Expand Energy Corporation closed Friday at $101.97.

NextDecade, a Texas-based LNG developer, is surging in 2025 with a 44% year-to-date gain.

Its weekly chart shows a technically significant breakout above a multiyear cup base that formed over more than three years, beginning in Q2 2022. That base was officially cleared in mid-July, with the week ending July 11 marking an 18% surge and pushing the stock above the key $10 level, shedding its single-digit status for the first time in over a year.

The breakout suggests meaningful momentum, with a measured move targeting the $15 area by year-end. NextDecade closed Friday at $11.10, and traders can look to initiate positions on a pullback near $10.50, with a logical stop just below $9 to manage risk.

There's energy in the energy sector yet.

Write to Doug Busch at douglas.busch@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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August 04, 2025 02:00 ET (06:00 GMT)

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