Chip stocks fall with Nvidia after data center rev disappointment
Investing.com - Mizuho (NYSE:MFG) raised its price target on DTE Energy (NYSE:DTE) to $151.00 from $145.00 on Wednesday, while maintaining its Outperform rating on the utility company’s stock. The $28.5 billion market cap utility is trading near its 52-week high of $140.39, with a year-to-date return of 15.4%.
DTE Energy reported second-quarter earnings per share of $1.36, missing Street estimates of $1.40. According to Mizuho, the miss was driven by the timing of a tax adjustment that is expected to reverse in the second half of 2025. InvestingPro data reveals that 5 analysts have recently revised their earnings estimates downward, though the company maintains an attractive PEG ratio of 0.88, suggesting potential value relative to its growth prospects.
The utility company disclosed it is in advanced discussions with potential data center customers representing 3 gigawatts (GW) of load, which would be upside to its current five-year plan. An additional 4 GW is in early stage development, and DTE is optimistic about signing 1 GW of data center load by year-end 2025.
DTE Energy continues to guide to the high end of its 6-8% earnings per share compound annual growth rate (CAGR). Mizuho noted that with potentially two rate cases occurring later this year, any rebase or CAGR update would likely be delayed.
Capital expenditures associated with these large customers, likely in the form of battery storage, would begin to appear in 2026, according to management’s commentary.
In other recent news, DTE Energy announced its second-quarter 2025 earnings, reporting operating earnings of $283 million, translating to $1.36 per share. This result did not meet analysts’ expectations, which had projected earnings per share of $1.48. The company had set a revenue forecast for the quarter at $2.65 billion, but actual revenue figures were not disclosed. The earnings miss led to a slight decline in DTE Energy’s stock in pre-market trading. These developments are part of the latest updates surrounding the company’s financial performance. Additionally, there have been no reports of mergers or acquisitions involving DTE Energy in this period. Analyst opinions or changes in stock ratings for DTE Energy have not been highlighted in the recent news. Investors are likely to consider these earnings results in their assessment of the company’s future prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.