Dominion Energy (D) stock ripped higher on Monday after NextEra Energy (NEE) announced a definitive agreement to acquire the Richmond, Virginia-headquartered firm for nearly $67 billion.
The deal combines two of America’s largest regulated utilities, creating a far bigger platform with the scale and balance-sheet strength to address the artificial intelligence (AI)-driven increase in power demand.
Versus the start of 2026, Dominion Energy shares are up more than 10%.
Is It Too Late to Invest in Dominion Energy Stock?
The NextEra transaction values Dominion shares at $76 each, while they are hovering at about $67 only at the time of writing.
This means the market hasn’t fully priced in the acquisition, leaving money on the table for arbitrage players.
For investors willing to bet on NEE’s ability to secure regulatory approvals and successfully close the Dominion Energy deal within the planned 12 months to 18 months, this price gap represents a window of opportunity.
All in all, loading up on the NYSE-listed firm positions you to extract another 10% or so of upside provided that the NextEra transaction crosses the finish line in 2027.
NextEra May Now Be a Better Pick Than D Shares
Beyond locking in that 10% arbitrage spread, for long-term investors seeking exposure to the rising AI power demand, a better investment vehicle would likely be NextEra shares.
While Dominion’s northern Virginia footprint sits at the epicenter of global data center expansion, NEE brings the world-class renewable generation and clean energy storage pipeline needed to feed power-hungry facilities.
Simply put, Dominion Energy shares may offer a fixed, short-term payout, but staying aligned with NextEra provides direct exposure to the premier institutional clean energy infrastructure name, making it the superior engine for secular growth.
Plus, NEE shares currently pay a healthy dividend yield of 2.85%, which makes them even more attractive to own, at least for income-focused investors.
What’s the Consensus Rating on Dominion Energy?
Investors should also note that Wall Street isn’t particularly bullish on D stock either.
The consensus rating on Dominion Energy sits at “Hold” only, with the mean price target of about $67 indicating analysts don’t really see potential for further upside in it without the NextEra deal.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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