Artificial intelligence (AI) stocks are on the rise, with concerns about the massive capital expenditures of hyperscalers. Utility providers like Constellation Energy offer upside potential with the growing AI build-out. Hyperscalers are investing heavily in data centers specifically for AI, consuming more energy and requiring specialized cooling systems.

Constellation Energy, the largest producer of carbon-free electricity, benefits from robust energy demand and long-term agreements with major tech companies like Microsoft and Meta Platforms. Its recent acquisition of Calpine Corp. gives it a significant capacity of clean energy assets, positioning it well for the AI data center boom.

Constellation Energy’s stock has recently dropped 30% due to high growth expectations and changing political factors. Despite potential caps on auction prices, the company has secured long-term agreements with major tech firms, ensuring revenue stability. With a substantial clean-energy portfolio, Constellation is poised to power the AI data center expansion in the coming years.

The Motley Fool’s Stock Advisor team has identified the 10 best stocks to buy now, excluding Constellation Energy. This recommendation follows a history of significant returns on past stock picks, highlighting the potential for substantial growth in the selected stocks. Stock Advisor offers insights and recommendations for individual investors looking to maximize their returns.

Read more at Yahoo Finance: This Utility Could Deliver Better Returns in 2026