Williams Eyes 13% Upside on AI Data Center Boom

Williams Companies (NYSE:WMB | WMB Price Prediction) has quietly become one of the best-performing large-cap energy infrastructure names of the past year, riding a wave of natural gas demand from AI data centers, LNG exports, and coal-to-gas switching. With shares at $75.41 and recently brushing a 52-week high of $76.45, investors want to know whether the run has more room.

Our 24/7 Wall St. price target for Williams is $85.87, implying 13.87% upside over the next 12 months. The recommendation is buy, with high model confidence of 90%.

24/7 Wall St. Price Target Summary

A Record Year Sets Up a Strong 2026

WMB has rallied 26.35% year to date and 29.8% over the past year, outpacing most midstream peers. Williams closed 2025 with record results: full-year revenue of $11.95 billion, net income of $2.615 billion (up 18% YoY), and record Adjusted EBITDA of $7.75 billion. Full-year EPS came in at $2.10, with Q4 EPS of $0.55.

The 2026 outlook is the real catalyst. Management guided to Adjusted EBITDA of $8.05 billion to $8.35 billion and Adjusted EPS of $2.20 to $2.38, while raising the annualized dividend 5% to $2.10 per share, marking the 52nd consecutive year of dividend payments. New CEO Chad Zamarin has leaned into the AI power story, with the Socrates project in Ohio coming online in the second half of 2026.

The Case for $99 and Higher

The bull case rests on Williams’ transformation into a power infrastructure play. Over $7 billion in power innovation capital is now in execution, with the new Socrates the Younger project added in Q4. Management is also advancing 7.1 Bcf/d of pipeline projects on top of 1.1 Bcf/d completed in 2025.

With 21 of 25 analysts rating shares Buy or Strong Buy, and our bull-case scenario pointing to $99.75 (+32.27%) if power-innovation contracts ramp faster than expected, the upside is real. The coordinated April 28 director purchases at $73.04, with nine directors buying simultaneously, reinforce that conviction.

The Risks Worth Watching

Bears have reasonable concerns. Williams took a $212 million impairment on Mid-Continent gathering assets, and 2026 leverage is targeted at 4.0x, up from prior years, as growth capex climbs to $6.1 billion to $6.7 billion. Tariffs on steel pipe and permitting risk add execution friction.

Shares already trade at 35x trailing earnings and 32x forward, rich for midstream. Our bear case lands at $74.82, essentially flat. That said, the margin pressure bulls would flag is largely a function of acquisition integration and front-loaded power-project investment, with returns expected from H2 2026 onward.

The 24/7 Wall St. Take

Our price target of $85.87 reflects a buy at high confidence. The key tipping factor is the combination of contracted backlog extending beyond 2030 and the optionality on AI power demand. The setup looks attractive for investors seeking defensive yield with secular growth exposure, though a sustained pullback in natural gas prices or a permitting setback that derails the Transco expansions would meaningfully change the calculus.

These projections assume Williams continues executing on its power-innovation portfolio and pipeline backlog. Significant upside or downside could come from how quickly AI data center demand translates into long-term contracted volumes.

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