Analyst names two mid-cap stocks that will benefit from decarbonization and AI development

Investors should pay attention to CleanSpark and Plug Power securities, which operate in the renewable energy segment, says Motley Fool analyst Leo Sun. They have significant long-term growth potential on the back of decarbonization initiatives, as well as growth in the energy-intensive markets of cloud infrastructure and artificial intelligence, the analyst explains.

The main advantage of CleanSpark, whose capitalization on the Nasdaq is $4.1 billion, lies in its business model, according to a Motley Fool article. It started by building localized energy systems (microgrids) to store wind, solar and other renewable energy. The company's customers could use them as stand-alone energy sources or connect them to their grids.

In 2020, she acquired bitcoin miner ATL Data Centers, which began operating on CleanSpark microgrids. She then bought several other mining assets, converted them to microgrids, and then began selling the mined bitcoins to expand the business. That's how she started building data centers for artificial intelligence needs that run on renewable energy.

"This evolution has turned CleanSpark into a unique company that addresses the environmental impact of data centers, helping companies reduce energy costs and long-term dependence on volatile oil and gas prices," Sun summarizes.

Since the beginning of the year, CleanSpark's quotations have jumped by almost 58%. The company's securities have 12 ratings from Wall Street analysts and all are "buy". The average target price is $20.2, which suggests a potential upside of more than 26% to the stock price at the close of trading on Ma. 22.

Plug Power, with a Nasdaq capitalization of $5.3 billion, is developing fuel systems for hydrogen storage. It could benefit from an increase in the clean hydrogen market, which Grand View Research predicts will grow at an average annual rate of 30.2% between 2026 and 2033, according to the article.

Sun calls Plug Power a pioneer in the market. Its fuel cells and charging systems are used by technology giant Amazon and retailer Walmart in their hydrogen forklifts.

The company expanded rapidly between 2022 and 2023, including through acquisitions, the Motley Fool analyst writes. That growth stalled in 2024 as many companies put their hydrogen projects on hold, he notes. The Financial Times attributed this to rising costs, policy uncertainty and a lack of buyers - "the willingness to pay a 'green' premium has evaporated."

The situation has changed again in 2025, says analyst Motley Fool. At the end of last year Plug Power reported an increase in net revenue by almost 13% to $709.9 million; at the end of the first quarter of 2026 - an increase of 22% year-on-year to $163.5 million. Sun explains last year's dynamics of interest rates reduction by the Federal Reserve and the resumption of government projects in the U.S. for the production of environmentally friendly hydrogen.

Since January 1, the company's quotes have soared almost 92%. However, Wall Street is cautious about Plug Power's prospects. Its securities have 11 "hold" recommendations from analysts, seven "buy" and four "sell" recommendations. The average target is $3.55 - 6% below the stock's May 22 price.