PaaS Firm Solaris Energy Emerges as AI Savior After Druckenmiller Disclosure
The biggest bottleneck in AI development is the lack of sufficient power.
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The market is under pressure on Cyber Monday. That isn't too surprising after a very strong Thanksgiving week, and so far, the bears haven't been able to generate much downside momentum. Breadth is running about 40% positive, with 95 new 12-month highs.
The most notable action is a bounce in Nvidia (NVDA) , which has been trading counter to the index action recently. Also, pockets of speculative trading have disappeared, which is driven in part by the weakness in Bitcoin and cryptocurrencies.
So far, the selling is mild, and there appears to be plenty of support, but buyers are not in any rush to jump in. A deeper correction would probably be a better setup, but there doesn't seem to be any real fear out there.
After five straight positive days for the S&P 500, plenty of charts need to rest. I view that as healthy and am watching for another leg higher to eventually develop. Currently, there aren't a lot of great setups on my radar, and I don't see much to do.
I've been hunting for some setups and have been taking a close look at the Investors' Business Daily top 50. There are quite a few precious metal stocks on the list, but also a few biotech names, and they are mostly extended.
One name on the list that caught my eye is Solaris Energy Infrastructure (SEI) . The thesis here is that the biggest bottleneck in AI is power. SEI is in a niche called "Power as a Service" (PaaS), which is a play on "Software as a Service" (SaaS). In both cases, customers can buy what they need on a shorter-term basis without the same massive capital expenditure.
SEI's initial focus was as an oil and gas company, but it is now rapidly expanding into providing power generation for data centers. The company's main business has been building and renting out specialized mobile equipment like trucks and systems that store, unload and deliver sand (called "proppant") and chemicals needed to finish drilling new wells for oil and natural gas.
This business has now expanded into PaaS. SEI provides natural gas-powered generators and turbines for "on-the-go electricity," which can power things like data centers or remote energy projects. This area is growing rapidly and is driving expected EPS growth in 2026 of 37%. The stock currently trades with a trailing PE of 48, which makes this a "growth-at-a-reasonable-price" play.
According to TipRanks, the stock has five analysts covering it, all with buy ratings. The highest price target is $71, and the average target is $62.80, versus the current price of about $47. In a recent report from Piper, the analyst stated that SEI added another 500 MW, which will raise its total energy capacity to 2.2 GW by early 2028. SEI currently has 900 MW of available capacity, which supports the company's efforts to secure its second data center contract.
Famed investor Stanley Druckenmiller's firm, Duquesne Family Office LLC, disclosed a new position of 145,600 shares in SEI as of September 30, 2025, in its latest available Form 13F filed November 14, 2025. Druckenmiller is particularly adept at finding new themes at an early stage.
Technically, the stock pulled back from recent highs due to weakness in the AI sector. It bounced back and is now around the 50-day simple moving average. We are looking for an opportunity to buy it as it moves back to around the $45 area. There is still pressure on the AI sector, so I'm not moving too quickly to build the position.
I will continue the hunt for new ideas, but will stay patient while the market consolidates and finds some new support.
At the time of publication, DePorre was long NVDA and SEI.
