Key investment opportunities in green energy identified by artificial intelligence

ChatGPT, the AI-powered chatbot product, has taken the world by storm. ChatGPT uses complex AI algorithms to read, parse, learn and understand text. So we thought we’d see what happens if we enlist the help of ChatGPT to find investment opportunities in green energy.

Here’s what we asked of ChatGPT:

“Which green energy projects are poised to thrive in the coming years?”

The beginning of his answer was:

There are many green energy projects that are expected to witness significant growth in the coming years with the increasing demand for renewable energy sources. Some examples include:

You will have to read further to know the green energy investment opportunities that ChatGPT has to offer. And since he didn’t make specific stock recommendations, I made sure to give some. Below are several promising green energy sectors that ChatGPT has identified and some of the stocks within those sectors that I have selected.

ENPH Enphase energy $245
FSLR First Solar $180.45
GE General Electric $80.08
best environmental practices Brookfield Renewable $28.48
EBR Centrais electricas $8.17
CVX chevron $177.56
GEVO Gifu $2.06

solar energy

Source: Shutterstock

What ChatGPT said:

“Solar Energy: Solar energy is a clean, abundant, and renewable resource that has the potential to meet a large portion of the world’s energy needs. There have been significant advances in solar panel technology in recent years, making it more efficient and cost-effective.”

Here are two solar stocks you should consider:

Enphase energy (NASDAQ:ENPH) products and services that address one of the key issues needed for mainstream solar energy acceptance. Specifically, microinverter technology captures direct current (Capital(energy from solar panels and converted into alternating current)Alternating current) energy that can be stored in batteries and used later. As a result, microinverters allow solar energy to be used during times when the sun is not shining. ENPH also sells batteries that also help enable this ability.

Analysts’ median price target on ENPH stock is $327.32, well above the $245.83 level it closed at on Friday.

First Solar (NASDAQ:FSLR) is an American manufacturer of solar panels. The company also provides support and maintenance services for utility-scale photovoltaic power plants. FSLR is expected to take meaningful advantage of the Climate and Energy Act passed last year, and the company says it will increase its manufacturing capacity in the United States.

FSLR stock currently has a fairly high forward price-earnings ratio of 42. But going forward, the company expects strong growth that could justify its premium valuation.

Second chance: wind power

Icon depicting a wind turbineWhat ChatGPT said:

“Wind power: Wind power is another clean, renewable resource that has the potential to make a significant contribution to global energy needs. Wind turbines can be used to generate electricity on both large and small scales, and the technology continues to improve and become more cost-effective.”

Here are two wind stocks for you to consider:

General Electric (New York Stock Exchange:GE) – In 2020, GE wind turbines accounted for 53% of the US installed base. The company plans to combine its GE Renewable Energy, GE Power and GE Digital units into a single business unit called GE Vernova, which is slated to spin off from GE in early 2024.

To take advantage of this offer, investors will need to invest in GE Stock which closed Friday at $80.20, against the analysts’ average price target of $91.91.

Brookfield Renewable Partners (New York Stock Exchange:best environmental practices) – BEP isn’t just gambling on wind power, but when it comes to clean energy, Brookfield Renewable Partners is one of the best stocks to own. The company owns solar, hydroelectric and wind energy projects.

BEP stock is currently trading in line with analysts’ average price targets. However, analysts’ bullish forecasts for the company’s revenue and earnings growth over the next five years suggest its shares will rally over that period.

Third chance: hydroelectric power

water image

Source: Shutterstock

What ChatGPT said:

“Hydroelectricity: Hydroelectricity is generated by harnessing the power of falling water, and it is a reliable and renewable source of energy. Hydroelectric power plants can be built on a small or large scale, and there are many potential locations for new projects around the world.”

Brookfield Renewable Partners is a viable option in this category. But another stock to consider is Centrais Eletricas Brasileiras Eletrobras (New York Stock Exchange:EBR). Centrais electricas It gives investors the opportunity to do business with a company that operates 48 hydroelectric plants in Brazil, which includes several major rivers.

However, like solar and wind power, hydropower depends on the weather, as droughts can undermine it. This issue adds an element of risk to hydropower stocks.

EBR stock is currently trading below analysts’ average price target by about 50%.

Opportunity #4: geothermal energy

CVX stock

Source: tishomir / Shutterstock.com

What ChatGPT said:

“Geothermal Energy: Geothermal energy is a clean, renewable resource that is created by harnessing heat from the Earth’s core. Geothermal power plants can be built on a small or large scale, and this technology is particularly well-suited for providing reliable base-load power.”

My picks in this area chevron (New York Stock Exchange:CVX). The company is known for being one of the largest oil producers in the world. However, like many traditional oil companies, Chevron is purposefully working to reduce its dependence on carbon. The company has become one of the major exporters of liquefied natural gas (LNG).liquefied natural gas). And for geothermal energy, the company is partnering with it Baslod Capital To find a site where geothermal processes can begin.

Investors should remember that CVX stock is still mostly valued as an oil stock. However, Chevron is a low-risk method of exposure to geothermal energy that will be one of the most important green energy investment opportunities in the next 20 years.

Opportunity #5: Biomass Energy

2 shares to consider buying instead of Ryanair shares

Source: Shutterstock

What ChatGPT said:

Biomass Energy: Biomass energy is generated by burning organic materials, such as wood or agricultural waste, to produce electricity. Biomass energy has the potential to provide a large portion of the world’s energy needs and can help reduce greenhouse gas emissions by Fossil fuel replacement.

My choice among biomass stocks is Gifu (NASDAQ:GEVO). It is a small-cap company with some risks. However, penny stocks are historically among the best performers at the end of bear markets.

GEVO’s claim to being one of the best green energy investment opportunities is that it has patented the technology it uses to make relatively cheap biofuels. Many airlines use or have approved the use of biofuels.

In addition to being a penny stock, GEVO is also a penny stock that closed at $2.08 a share Friday. This price is well below the average analyst price target of $7.50.

As of publication, Chris Markoch has had long positions in CVX stock. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com Publication guidelines.

Chris Markocch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019.

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