Clean Energy Equities Quietly Crush Markets Despite Political Headwinds

Cleantech just pulled off the market’s favorite magic trick — thriving in political chaos. Despite President Trump dismantling climate policies, green energy stocks have jumped 40% in 2025 — outpacing the S&P 500 by 25 percentage points. This counterintuitive rally is being powered by AI’s insatiable appetite for electricity.

• Bloom EnergyBE
  and China’s CATL are fueling the rally, with Bloom soaring triple digits as AI’s power needs spark a rush for rapid energy solutions.
• The trend is “leaving most upstream oil and market indexes in the dust,” noted Rystad’s Artem Abramov — a reversal for a sector that cratered nearly 60% during 2022-2023.

AI charges the grid: Despite Trump’s policy rollback, investors see that powering AI’s massive energy needs will rely on renewables. Bloomberg Intelligence’s Shaheen Contractor believes “AI-driven energy demand, which may more than double by 2028, favors fast-to-deploy solar, storage, and gas capabilities.” Still, early-stage startups struggle without government incentives, even as China, India, Europe, and progressive US states stay committed to low-carbon goals.