Is Enphase Energy, Inc. (ENPH) the Best Clean Energy Stock to Buy According to Billionaires?
We recently published a list of the 10 Best Clean Energy Stocks to Buy According to Billionaires. In this article, we are going to take a look at where Enphase Energy, Inc. (NASDAQ:ENPH) stands against other top clean energy stocks according to billionaires.
The current overall bearish trend has also dealt a massive blow to the energy sector, which fell by more than 15.7% over the last five days, against a decline of less than 10% by the overall market. This is despite the fact that energy commodities were exempted from President Trump's sweeping new tariffs – a clear tactic to keep energy inflation in check and in-line with his broader aim to keep energy prices low. The biggest reason for this is the prevailing anxiety about what these tariffs will do to economic growth and, hence, the power demand. The decline in energy stocks also indicates that the market is not expecting any reindustrialization of America to happen in the near term, which appears to be the President's key aim behind his upending of the entire global trade system.
READ ALSO: 12 Best Nuclear Power Stocks To Buy Now
That said, the global renewable energy industry is growing at a record pace as the world moves ahead with its energy transition to mitigate the impacts of climate change. According to the International Renewable Energy Agency, the global renewable power capacity reached 4,448 gigawatts (GW) in 2024, with an addition of 585 GW just last year. This represented a 92.5% share of the total capacity expansion during the year and marked a record 15.1% rate of annual growth.
The American clean energy sector has kept up with this explosive growth and brought online 48.2 GW of capacity from utility-scale solar, wind, and battery storage in 2024, according to research organization Cleanview. Renewables are set to continue this momentum, and the US Energy Information Administration expects the share of new power capacity to come online this year from renewables and batteries to jump to 93%.
One sector that has particularly garnered accelerated investor interest over the last year is nuclear energy. The International Energy Agency recently revealed that nuclear is set to generate a record level of electricity in 2025. Moreover, on the sidelines of the CERAWeek conference in Houston last month, several major corporations even signed a pledge to support the goal of at least tripling the world's nuclear energy capacity by 2050.
Another sector that has performed exceptionally well is that of energy storage, which set a new record with 12.3 GW of installations across all segments in the US last year. According to the American Clean Power Association, the industry is on a path to surpass 100 GW of grid-scale storage deployed by 2030. However, the country's rapidly expanding sector now faces a serious threat since over 90% of lithium-ion energy storage cells deployed in the US storage market last year originated from China, according to Rho Motion, a data research company.
Despite the Trump administration's best efforts to hamper its growth, the clean energy sector continues to be backed up by an increasing number of hedge funds and billionaires. A great example is how Berkshire Hathaway Energy, a wholly-owned subsidiary of Warren Buffett's Berkshire Hathaway, has invested over $40 billion in wind, solar, and hydroelectric projects and operates one of the largest renewable energy portfolios in America.
A solar panel array stretched across a large open field, its glimmering panels reflecting the sun.
To collect data for this article, we scanned Insider Monkey's database of billionaires' stock holdings and picked the top 10 companies operating in the renewable energy sector with the highest number of billionaire investors in the Insider Monkey database in Q4 of 2024. When two or more companies had the same number of billionaires backing them, we ranked them by the revenue of their last financial year. Following are the Best Clean Energy Stocks According to Billionaires.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Number of Billionaire Investors: 8
Enphase Energy, Inc. (NASDAQ:ENPH) is a global energy technology company and the world's leading supplier of micro inverter-based solar and battery systems. The company has shipped approximately 80 million microinverters, and approximately 4.7 million Enphase-based systems have been deployed in more than 160 countries around the world.
Enphase Energy, Inc. (NASDAQ:ENPH) outperformed estimates in Q4 2024 as its adjusted EPS of $0.94 managed to beat consensus by $0.19. The company's revenue of $382.71 million, besides being up by 26.5% YoY, also managed to top expectations by $5.21 million. ENPH generated a free cash flow of $159.2 million in Q4 2024 and ended the year 2024 with cash, cash equivalents, restricted cash, and marketable securities of $1.72 billion. The company remains committed to its shareholders and repurchased approximately $199.7 million worth of its shares in Q4 2024, with a remaining $398 million authorized for further share repurchases.
Enphase Energy, Inc. (NASDAQ:ENPH) announced this month that it has launched the IQ System Controller in France and the Netherlands, further bolstering its footprint in Europe. This was followed by the company's announcement of production shipments of its newest electric vehicle (EV) charger, the IQ EV Charger 2, in 14 European markets last month.
Enphase Energy, Inc. (NASDAQ:ENPH) ranks among the 10 Best Climate Change Stocks to Buy Now.
Overall, ENPH ranks 7th on our list of the best clean energy stocks to buy according to billionaires. While we acknowledge the potential of renewable energy stocks , our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ENPH but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at .
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