2 Stocks That Can (Mostly) Escape the Impact of High Oil Prices

Rising oil prices affect almost every business sector, but they can be particularly scary for artificial intelligence (AI). Processes such as chip manufacturing and the operation of data centers demand a tremendous amount of energy. Even though such entities do not typically operate directly from oil, the demand they place on the energy infrastructure could send production costs soaring.

No AI stock is completely immune from the need for energy, but some parts of the AI sector demand relatively little of it, and these companies could offer some protection for investors.

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Nvidia

Nvidia (NASDAQ: NVDA) may not appear to be a safe company in the current environment. After all, its AI accelerators (a dominant source of revenue) help power data centers that require a lot of energy to operate. And oil gets refined into the plastics used in the products and packaging of many Nvidia products.

But the oil price hikes are likely to have a more indirect effect on Nvidia. After all, Nvidia is a chip design company. Many of its advanced chips are actually produced by Taiwan Semiconductor Manufacturing, which will be the one dealing with rising production costs more directly. Moreover, the demand for Nvidia's AI accelerators is such that it cannot keep up, and chip prices have continued to rise. This makes it more likely that it will sell its inventory in almost any production cost environment and it should have the pricing power to pass along costs to its clients.

In fiscal 2026 (ended Jan. 25), the $216 billion in revenue it generated rose 65% year over year. That demand is also on track to remain strong for the foreseeable future. Analysts forecast 70% revenue growth in fiscal 2027 before it slows to 27% the next year.

And even if that revenue increase slows, investors might be forgiving when considering a 37 price-to-earnings (P/E) ratio and a 22 forward earnings multiple. With such valuations, even those who are risk-averse should feel safe putting their money into this chip leader.

Meta Platforms

Like Nvidia, the advantage of Meta Platforms (NASDAQ: META) might not seem obvious given the recent developments. As the company works to become a leader in AI, it has gone on a data center building binge, which will make its energy needs exponentially higher.

However, that is more the long-term plan for the Facebook parent. Several years from now, the world's energy situation could be dramatically different, which buys the company some time to manage the rising cost.

Looking at the present Meta Platforms, its energy needs appear tame, at least when considering that almost 3.6 billion people log on to at least one of its apps every day. For now, it is almost exclusively a digital advertising company.

In 2025, it generated almost $201 billion in revenue, a 22% increase compared to 2024. Of that $201 billion, over $196 billion, or 98%, came from digital advertising. Also, since analysts forecast a 25% revenue increase for 2026, the heavy reliance on digital ads is unlikely to change quickly.

Ultimately, at a P/E ratio of 27 and a forward P/E of 21, Meta investors are less likely to sell the bump in energy prices. That valuation should also give the stock some downside protection as AI becomes a more significant revenue source.

Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.