Solaris Energy: power for data centers and the AI boom

Shares of Solaris Energy under the ticker SEI are currently trading near the $50 mark. After a recent correction, the stock dropped out of sight for part of investors, as the market overall has become more selective and cautious. However, it is precisely in such periods that positions are formed in companies standing behind key infrastructure trends. In the case of Solaris, this is not just about energy as such, but about creating and providing power capacity for data centers — the basic infrastructure for artificial intelligence, cloud computing, and data storage.

The main strategic shift in the company’s business model is the emphasis on the power direction. According to management estimates, by 2028 about 90% of profit will be generated specifically from the energy segment. This implies the transformation of Solaris from a more diversified player into a specialized provider of solutions for powering digital infrastructure. Against the backdrop of exponential growth in computing loads created by AI models and large cloud platforms, demand for stable and scalable energy is becoming a bottleneck for the entire industry. Companies capable of quickly deploying capacity and ensuring reliability of supply gain a structural advantage.

Financial dynamics are also beginning to reflect this transition. The forecast for earnings per share for the fourth quarter is about $0.30 compared to $0.11 a year earlier. Such growth indicates a significant improvement in operating efficiency and business scaling. If expectations are confirmed in the report, this may strengthen confidence in the long-term earnings trajectory and support multiples. At the same time, it is important to understand that the market has already partially priced in acceleration, so the reaction will depend not only on the numbers themselves but also on management’s comments regarding the contract base and margins.

Institutional investors have been increasing positions for five consecutive quarters. A consistent increase in the share of large funds usually indicates that the company is seen as having long-term potential rather than being a short-term speculation. An additional confidence factor is a significant ownership stake held by management, reaching approximately 30%. Such an ownership structure aligns the interests of management and shareholders, as key decisions directly affect their own capital.

From a technical standpoint, the stock is below the $57 level, which was previously considered a buying zone. Current levels can be interpreted as a pullback within a broader formation, but the final conclusion depends on whether the price holds the nearest supporting averages, particularly the 21-day EMA. Volatility remains elevated: the average daily trading range reaches about 10%, creating conditions for sharp intraday swings. For short-term participants, this means increased risks; for medium-term participants, it means the need for careful positioning.

The nearest catalyst will be the fourth-quarter report scheduled for February 24. It will show whether the stated pace of earnings growth is confirmed and how sustainable demand from data center operators is. In conditions where the market is increasingly concentrating on companies with a clear cash model and a direct link to AI infrastructure, Solaris may find itself among the beneficiaries of the structural trend.

Thus, Solaris is not just an energy company in the traditional sense. It is a provider of critically important infrastructure for the digital economy. If the growth rates of the power segment are maintained and institutional support continues, the company is capable of moving from the “second tier” category into the ranks of notable players in the AI infrastructure segment. The question is whether the report will confirm current expectations and whether the market will be able to reassess its role in the artificial intelligence value chain.