D-Wave price target doubled! Is the US losing the AI race? Plug Power and First Hydrogen shares benefit!

Plug Power: Will energy decide the AI race?

Nvidia and Broadcom are powering the AI revolution — but without fuel, even the fastest engine stands still. Increasingly, experts are warning of precisely this. OpenAI has recently pointed out that the US is heading toward a growing "electron gap" with China. Around 100 GW of new power plant capacity would have to be added annually to maintain AI leadership. At the same time, the IEA expects the power consumption of data centers to more than double by 2030. If grid expansion and approvals continue at their current sluggish pace, this could become a huge problem – for data center operators and for the US as a whole. After all, the US and China are engaged in a race for artificial intelligence supremacy, and the winner could gain massive strategic advantages, not least in the military sector.

China is demonstrating what expansion speed looks like. In 2024, around 430 GW were connected to the grid. Incidentally, around 278 GW of this came from renewable sources such as solar and wind. In the US, the figure was only around 50 GW, and this was already a record increase. The trend appears to be continuing. In China, over 500 GW are expected to be connected to the grid this year, while the figure in the US may reach just over 60 GW.

Accordingly, stocks related to energy production and infrastructure are skyrocketing. The latest wave has swept up hydrogen and fuel cells. Plug Power sits at this intersection of AI demand and energy scarcity. Fuel cells are said to be suitable as a primary energy source or emergency power for data centers. Plug's stock has tripled in the past six months. The Company is now valued at over USD 3 billion again. First Hydrogen is significantly cheaper.

First Hydrogen: Takeover candidate?

In the US, small modular reactors (SMRs) and microgrids are hot topics as potential solutions to meet the growing energy demand. First Hydrogen aims to combine these technologies with hydrogen. The experts at researchanalyst.com recently published an update on the Company. The conclusion: First Hydrogen is a small but well-diversified hydrogen specialist. The stock appears to have found a bottom, and its market capitalization of less than CAD 40 million could soon attract potential acquirers.

First Hydrogen is building a complete hydrogen value chain - from delivery trucks to energy production. Following successful field tests of its fuel cell transporters in Amazon's UK logistics operations, a series version with significantly increased range is scheduled to roll off the production line by 2028. In Canada, the "Hydrogen-as-a-Service" model is being cleverly expanded. Strategically, First Hydrogen is also focusing on SMRs as a future, grid-independent power source for green hydrogen. This area is being driven forward by its subsidiary First Nuclear and is benefiting from growing support from the Canadian government. By coupling electrolysers with nuclear power plants, hydrogen can be produced continuously, independently of the weather, and CO₂-free. This is not only interesting for data centers, but there is also demand in energy-intensive sectors such as steel, chemicals, and cement. Overall, the Company is positioning itself as a beneficiary of a potential SMR and hydrogen megatrend Link to researchanalyst.com.

D-Wave: Analysts double price target

Quantum computing is already electrifying the stock markets, but it still plays a minor role when it comes to energy requirements. In the medium term, however, demand could rise significantly if error-corrected machines with millions of qubits become a reality. Among other things, they require cooling and control systems.

One of the quantum high-flyers is D-Wave. The stock has recently undergone a sharp correction; however, Cantor Fitzgerald may have ended this phase, as its analysts have raised the price target for D-Wave shares from USD 20 to USD 40. The "Buy" recommendation has been confirmed. Although quantum computing is still in an early stage of development, its strategic importance and economic potential are becoming increasingly apparent. Analysts see D-Wave as a future industry leader. They believe the Company will achieve a market share of 20% by 2035. Previously, they had expected 15%.

Rising energy demand remains a major issue. Yet while companies such as Plug Power are already very highly valued, First Hydrogen shares still appear to offer catch-up potential. D-Wave, meanwhile, represents a basic investment for investors seeking exposure to the quantum technology sector.