Wall Street profit-taking on AI trade causes nuclear energy stocks to drop

From Nasdaq: 2025-03-06 08:00:00

Wall Street took profits on the entire artificial intelligence trade, including nuclear energy stocks, over the past several weeks, erasing months’ worth of gains in a flash. Microsoft and others reaffirmed AI-focused capex spending, while Nvidia highlighted exceptional AI growth. The U.S. government supports nuclear energy revival to triple capacity by 2050.

Constellation Energy CEG, the largest U.S. nuclear power plant operator, announced a $26.6 billion deal to acquire Calpine, creating the nation’s largest clean energy firm. CEG secured a 20-year power purchase agreement with Microsoft and raised its dividend by 25% in 2024. Constellation’s EPS growth is estimated at +8% in 2025 and +15% in 2026.

GE Vernova GEV is a pure-play energy transition stock, providing exposure to nuclear and natural gas technologies, with projected adjusted earnings growth of 21% in 2025 and 67% in 2026. GEV also declared its first dividend and approved a $6 billion share repurchase plan. GE Vernova has jumped 125% since its IPO but dropped 30% recently.

Vistra VST, the largest competitive power generator in the U.S., owns a growing portfolio of nuclear, solar, battery storage, and natural gas assets. VST’s Energy Harbor deal bolstered its nuclear division and transformed the company into a leading zero-carbon generation and retail electricity firm. Vistra has surged 450% over the past three years but has dropped around 35% from its January highs.



Read more at Nasdaq: 3 Top Nuclear Energy Stocks to Buy, Down 30% After AI Selloff