Constellation Energy sees surge in stock after acquiring Calpine, positioning itself as top investment in clean energy and AI.

From Nasdaq: 2025-01-13 08:00:00

Constellation Energy (CEG) saw a 25% surge in its stock after acquiring Calpine, creating the largest clean energy company. With a Zacks Rank #2 (Buy), CEG has outperformed tech giants like Nvidia. The U.S. government’s support for nuclear power has boosted Constellation’s growth, positioning it as a top investment in clean energy and AI.

Nuclear energy leader Constellation benefits from government support and is expanding its nuclear power plants. The company’s forecasted earnings growth of 66% in 2024 and 10% in 2025, along with a 25% dividend increase, make it an attractive long-term investment. Constellation’s focus on acquisitions and shareholder value adds to its appeal.

Constellation’s acquisition of Calpine solidifies its position as a major electricity generator. The deal, worth $26.6 billion in cash and stock, expands CEG’s reach into key regions like Texas and California. Calpine’s capacity to power 27 million homes highlights the strategic move towards clean energy and grid reliability.

The Calpine acquisition is expected to close within a year, showcasing Constellation’s commitment to growth. With a strong performance record, CEG’s stock has outpaced tech giants like Nvidia and Meta. The company’s focus on AI-driven energy solutions aligns with the industry trend towards sustainable and reliable power sources.



Read more at Nasdaq: Why Constellation Energy is a Top Nuclear and AI Stock to Buy in 2025