We recently compiled a list of the 15 AI Stocks Making Waves on Wall Street. In this article, we are going to take a look at where Arista Networks, Inc. (NYSE:ANET) stands against the other AI stocks that are making waves on Wall Street.

Data centers are at the heart of the AI disruption sweeping markets across the world. However, the massive investment into these data centers has raised concerns about their impact on the environment. According to a report by news agency Reuters, the growing demand for electricity from data centers, fueled by advancements in AI and cloud computing, risks a near-term increase in fossil fuel reliance. Utility firms across the US, Europe, and Asia are turning to natural gas and even coal to meet the surging power needs due to the slow pace of renewable energy expansion, per the news agency. An example of this can be seen in Northern Virginia, which houses the largest concentration of data centers globally.

Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.

The news agency contends that globally, the scenario is similarly challenging. Countries like Poland and Germany are partially relying on coal due to inadequate renewable capacity, with Poland's energy mix still dominated by over 60% coal as of 2023. In Ireland, where data centers now consume more than 20% of electricity, operators have postponed plant retirements and leaned on natural gas for grid stability. In Malaysia, less than 50% of auctioned green power is being utilized, as companies opt for cheaper fossil fuels. While hyperscalers have pledged renewable energy use, critics argue that these commitments often involve diverting clean energy already available to others, thereby not contributing additional renewable capacity. McKinsey projects that most of Europe’s data center power by 2030 will come from low-carbon sources, but this may include natural gas.

READ ALSO: 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.

For this article, we selected AI stocks by combing through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).