Constellation Energy operates the largest nuclear power fleet in the U.S. Investors eyeing AI energy plays may find potential in Constellation’s ability to generate power today. Nuclear energy is resurging due to its continuous carbon-free electricity production, especially crucial for AI data centers. Start-ups like NuScale and Oklo are innovating, but Constellation leads in scale and earnings.

Constellation has secured major deals with tech giants like Meta Platforms and Microsoft. The company is profitable with strong recent earnings growth, reflecting rising power demands. Constellation operates unregulated, allowing it to sell electricity at market rates. However, potential pricing constraints and political risks in the mid-Atlantic market pose challenges.

Constellation stock trades at a high valuation, but growth opportunities exist, particularly with increasing AI-related electricity demands. For those seeking nuclear exposure without single-stock risk, a nuclear energy ETF may be preferable. The Motley Fool does not currently recommend Constellation Energy in its top 10 stocks list.

Investor Steven Porrello has positions in Microsoft and Oklo. The Motley Fool has positions in and recommends Constellation Energy, Meta Platforms, and Microsoft. It also recommends NuScale Power and certain options related to Microsoft.

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