Coca-Cola's Q2 Beat Signals a Pivot to AI's Energy Infrastructure Goldmine

Coca-Cola (KO) delivered a modest Q2 2025 earnings beat, reaffirming its status as a dividend stalwart. But investors should look beyond this soda giant's 2% EPS surprise to the real opportunity: the $122 billion AI energy infrastructure crisis powering its future. As data centers consume 55 gigawatts today and race toward 122 GW by 2030, undervalued nuclear and LNG infrastructure stocks are primed for 100%+ returns. Here's why KO's stability is the catalyst to pivot into this overlooked sector.

Coca-Cola's Q2: A Steady Hand in an Unsteady World

The beverage titan reported Q2 EPS of $0.84, narrowly beating estimates by $0.01. While revenue missed forecasts by 1%, the company maintained its 2025 guidance of 5-6% organic growth. This resilience in a slowing global economy underscores KO's enduring franchise value—its 99-year dividend growth streak and 200-country distribution network remain unmatched.

But here's the catch: Coca-Cola's stock trades at a 28.8 P/E, near its five-year average. With the S&P 500 at a 19.5 P/E, KO's premium reflects its stability—not growth. Investors seeking outsized returns must look elsewhere.

The AI Energy Crisis: Why Data Centers Need Nuclear and LNG

The real growth driver lies in the 16% CAGR of global data center power demand through 2028. Goldman Sachs warns that U.S. data centers alone could consume 12% of national electricity by 2028, up from 4.4% in 2023. This isn't just about cooling servers—it's about powering the 122% CAGR in AI inference tasks that fuel everything from autonomous vehicles to cloud gaming.

Nuclear energy offers unmatched reliability, with a 92.5% capacity factor versus 25% for solar. A single reactor can power five 200MW data centers, making it critical for 24/7 AI workloads. Meanwhile, LNG infrastructure provides a near-term bridge: it's faster to deploy than nuclear (4-6 vs. 5-11 years) and cheaper, at $1,290/kW vs. $6,417-$12,681/kW for nuclear.

3 Undervalued Plays to Capitalize on AI's Appetite for Energy

1. Nano Nuclear Energy (NNE): The Microreactor Leader

• Why Buy? NNE's KRONOS microreactor is NRC-approved and targets remote AI hubs. Its $20-25 share price sits 58% below a $50 analyst target, offering 140% upside.
• Catalyst: Final regulatory approval for fuel methodology opens the door to construction permits.
• Risk: High R&D costs and regulatory delays.

2. Constellation Energy (CEG): Nuclear Power for Tech Giants

• Why Buy? Supplies 1.1GW to Meta's data centers. Shares trade at $200-325, 75% below a $350 target.
• Catalyst: Q1's 10% revenue growth despite an EPS miss signals resilience.
• Risk: Utility stock volatility tied to interest rates.

3. NuScale Power (SMR): Small Reactors, Big Returns

• Why Buy? First NRC-approved SMR provider, with Google partnerships. At $17.50, it's 42% below a $25 target.
• Catalyst: Breakout above $17.50 could trigger a rally to $20-$25.
• Risk: SMR commercialization timelines are still years away.

LNG Infrastructure: The Near-Term Play

While nuclear is the long game, LNG pipeline stocks offer immediate gains. Goldman Sachs forecasts 3.3 Bcf/day of new gas demand by 2030, requiring $20 billion in infrastructure. Firms like Williams Companies (WMB), which operates 28,000 miles of pipelines, are undervalued at 10x EV/EBITDA.

The Bottom Line: KO's Stability Points to Infrastructure's Boom

Coca-Cola's Q2 results confirm its defensive appeal—but the next decade's winners will be companies solving AI's energy crisis. With nuclear's scalability and LNG's speed, investors can pair KO's dividend with these infrastructure plays for balanced growth.

Actionable Advice:
- Buy 10% of your portfolio in CEG and NNE, with a 12-month target of $350 and $30, respectively.
- Use LNG infrastructure ETFs like XLE for diversification.

The soda stream may be stable, but the energy geyser powering AI is where the real wealth lies.