Ford Just Launched a $2 Billion Energy Business to Power AI Data Centers. Is F Stock a Buy?

Ford Motor (NYSE:F) surprised investors with the introduction of Ford Energy earlier this month, and shares have taken off ever since. The legacy automaker has been throttling back on plans to develop and sell electric vehicles (EVs), including massive write-downs from capital investments.

Now that it has a plan to repurpose some of those assets, investors are turning a huge negative into a positive. That’s led to Ford shares surging about 30% in the last month, and investors want to know whether Ford’s new $2 billion investment will be the catalyst that keeps the stock marching higher.

Image source: The Motley Fool.

The Ford pivot

Late last year, Ford said it would incur approximately $19.5 billion in charges, primarily related to its EV business. Declining demand for EVs led it to end production of its high-profile, all-electric F-150 Lightning. That came just a few years after the company split its business into three different segments, one of which was Ford Model e, dedicated to EV production.

Investors sensed the company was scrambling with no clear direction or future for its electric division. Ford stock dropped by double-digits from the start of 2026 into the spring. But a 32% surge since its Ford Energy announcement has changed the landscape.

Do what Tesla does

Ford may have been keeping an eye on Tesla when it decided to repurpose assets and invest another $2 billion to create an energy division. Tesla’s energy storage business is dwarfed by its EV sales, but the battery storage segment has been thriving.

Revenue from Tesla’s energy generation and storage soared by 27% last year, versus 2024, to $12.7 billion. It has more than doubled since 2023. As data center growth has exploded, the market for battery storage could, too.

Data centers are increasingly looking for on-site power generation, and some of those systems will need to include storage to ensure a constant supply of electricity. Large tech companies are projected to spend $4 trillion on data center investments by 2030, according to recent research from The Motley Fool.

Will the AI boom save Ford?

Ford isn’t just about its new energy division, of course. Ford Pro is a very successful commercial and business vehicle sales segment. Ford Blue has its issues, but iconic internal combustion engine (ICE) models, including the F-150, Bronco, and Mustang, and hybrid vehicles, helped lead the company to increase its 2026 earnings guidance last month.

Some analysts think Ford Energy will be the next big catalyst, though. Morgan Stanley estimated the new energy segment alone could be worth $10 billion, according to The Wall Street Journal.

Ford already has relationships in place with global battery makers. That battery technology will now go toward storage to support soaring energy demand by AI data centers and utilities rather than into electric vehicles.

Legacy automakers aren’t typically valued very richly by Wall Street. Ford stock has a forward price-to-earnings (P/E) ratio of below 10. That helps explain the recent surge. The risk with Ford stock now may be more tied to an AI bust than to the underlying business.

Ford stock looks like a buy here, given its low valuation and a path to a new revenue stream supported by AI. Investors should just beware that if the air begins to leak out of the AI investments, Ford’s share price will likely suffer, too.

Howard Smith has positions in Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.