Catenaa, Saturday, December 13, 2025- US Green stocks are booming this year, not due to President Trump’s push for Big Oil, but the surge in energy demand for AI.
The S&P Global Clean Energy Transition Index has rallied this year, handily beating an advance in the S&P 500 Index. It’s also outpacing an gain in the S&P Global Oil Index, which was expected to be a big winner on the back of Trump’s “drill, baby, drill” agenda.
That’s an outperformance few had expected going into 2025, when investors had fled from stocks such as solar and wind producers on worries that Trump would abandon green policies and boost production of fossil fuels.
While the US has indeed taken steps to overhaul energy policy — including trying to block wind farm projects and dropping out of a global pact to reduce greenhouse gas emissions, other countries such as Germany and China have shored up the sector by committing billions of dollars in spending on grid development and infrastructure for the energy transition.
And it’s more than just demand from AI data centers. Lower interest rates have improved the outlook for debt-heavy green stocks. Valuations are still below average, while many European and Asian countries and even some US states are pushing for the switch to cleaner power.
Clean energy stocks are among this year’s best performers across regions. US-based maker of fuel cells Bloom Energy has surged, while China’s Sungrow Power Supply, one of the world’s largest inverter and energy storage producers, has rallied.
In Europe, Siemens Energy AG has more than doubled.
Those gains are far ahead of the rally in US tech heavyweights, including AI bellwether Nvidia, which is up about.
And oil has declined as Trump’s push for US producers to ramp up drilling has partly fed a global supply glut. OPEC now predicts a quarterly surplus rather than a deficit in global oil markets.
