Analysts at Wolfe Research are optimistic about the clean energy sector in 2026, citing rapid data center growth and a favorable U.S. budget bill. The analysts, led by Steve Fleishman and Dylan Nassano, note that clean energy stocks are entering the year with strong momentum, driven by a "huge" second-half rally in 2025. This optimism stems from the sector's ability to weather initial concerns over President Donald Trump's policies, which were ultimately less impactful than feared.

The sector's resilience is attributed to Trump's tax and spending bill, passed last July, which had "very manageable impacts" on the industry. Additionally, an executive order targeting clean energy tax credits was deemed less damaging than initially anticipated. This stability, combined with the ongoing data center buildout, is expected to fuel demand for clean energy sources. The artificial intelligence boom, requiring massive power for data centers, is seen as a significant driver of this growth.

Wolfe analysts recommend a "selective approach" moving forward, favoring companies with quality cash flows over more speculative investments. They highlight electrical infrastructure services companies and energy technology provider Nextpower as key players. Nextpower is expected to expand its leadership in solar energy both in the U.S. and globally, positioning itself as a central beneficiary of this trend.

Looking ahead, the data center growth and AI boom are set to continue, suggesting a promising outlook for clean energy stocks in 2026. Investors are advised to monitor these developments closely, as they could significantly influence the sector's performance.