VST is undervalued due to its critical power generation assets for AI infrastructure; expected to rise to $180-$200 over the next 2-3 quarters.

I think I've found one of the biggest opportunities in the AI boom, and surprisingly, it's not a semiconductor company. This is electricity and here I present my position on the Vistra Tinker Symbol VST.

I opened a call leap option for June 17, 2027 on my leaps challenge and we are in a 40% profit. Another one is AAOI, but VST is in profit at $2200, there is not much capital here and it is up 40%.

AI companies are spending hundreds of billions of dollars building data centers, but GPUs are essentially useless without enough electricity to run them. This is exactly why I am buying Vistara.

Well, VST is one of my new plays and I'm very interested in investing more in my leap position.

Now, Vistara has something that has suddenly become extremely valuable , and that is a large amount of existing power generation, including nuclear power. Meta has signed a 20-year contract with Vistra for more than 2,600 megawatts of nuclear power.

Vistara also has a large nuclear deal with Amazon Web Services. And now the US government is moving forward with billions of dollars in funding to further expand Vistra's nuclear production.

But the reason I'm interested in Vistara isn't just because of the increasing demand for electricity. There are many companies that can benefit from this. What makes Vistra so appealing to me is that they already have the resources that everyone suddenly needs.

On the other hand, Vistra already has a huge generation portfolio. The company owns nuclear power plants, natural gas generation, solar, battery storage, and other energy assets across the United States.

And I think nuclear power is the most interesting thing about the whole thing, because AI data centers do n't just need a lot of electricity. They need reliable electricity around the clock.

And nuclear power plants can run 24 hours a day and produce huge amounts of electricity regardless of whether the sun is rising or the wind is blowing. They have the convenience of getting electricity whenever they want.

And that's a big reason why we're seeing companies like Meta and Amazon become much more proactive about getting nuclear power.

And think about what a 20-year contract actually tells us. Meta is not making these deals because they think AI's power demand will remain strong for the next year or two. They are actually planning for infrastructure needs and moving forward, perhaps decades into the future. I mean, they have a contract in place.

But, what we see in the case of Vistra is completely different. We are investing in something that almost every other company needs, and that is electricity. However, its statistics are very interesting.

Let's look at the business side , because I do n't want to just take a company for granted just because it's trending in the market right now. Let 's analyze the numbers and statistics.

Vistra has actually become a huge cash-generating machine.

Management's 2026 guidance calls for adjusted EBITDA of $6.8 billion to $7.6 billion and adjusted free cash flow of $3.9 billion to $4.7 billion. This cash flow is crucial, as Vistra can use it to invest in new power generation, develop existing assets, reduce debt, and pay dividends to shareholders.

This is why I think the stock is currently very undervalued. And of course, my Leaf options have increased by 40% in a very short time. I think it has room to grow further and I am interested in buying more Vistara.

Because if electricity becomes increasingly scarce in regions where large data centers are being built, existing electricity resources could become more valuable. Big tech companies are concerned about ensuring reliable power , as not having enough power could hinder their deployment of billions of dollars worth of AI infrastructure.

So, without that , it means you have all this infrastructure that you can't use. Basically it's a waste of money. Therefore, Vistra is not selling any optional products to these companies.

They are selling something that the entire AI infrastructure depends on.

why don't you just buy VST shares? The reason is leverage or strategic advantage. I can control the equivalent of 100 shares with just one contract. So, whenever I do a leap option, I'm not investing much capital compared to 100 shares.

We saw my position. I'm showing it again on the screen right now. So, VST 135 is a call option, which is worth $3,800 per contract. To clarify, one contract costs $3,800, but 100 shares cost $13,500.

I'm literally saving $10,000 by buying a LEAP call option instead of buying 100 shares. And by the way, that's more than $10,000 because it takes about $16,000 to buy 100 shares at the current price of $159.

So yes, I am very interested in getting a big discount on the same amount of shares.

if VST goes down , the LEAP option will suffer a loss. when I look at Vistra , I don't expect it to go up very quickly next week , although that's actually what happened. But my main idea is that in the next few quarters, investors will realize how valuable power generation has become as infrastructure spending increases.

So, I didn't expect it to grow so much in a week , 40 % profit on options is quite attractive, but I'm not taking profits right now. I will hold it because I have a good feeling about VST that the stock could rise to $180 or even $200 per share in the next two or three quarters.

If you have too many shares and the VST goes down and you do n't know how to manage it, you will lose money.

if the VST drops significantly, the leap option may be affected. if VST goes up, the leap option will bring in much more profit than anything else , right?

I think Vistra is one of my favorite mediums for catching this trend , and that's why I'm keeping this leap option.