Constellation Energy and Talen Energy Attract Attention Amid Rising Nuclear Demand for AI Data Centers
Nuclear power is gaining renewed attention in the U.S. due to rising electricity demand from AI data centers, benefiting companies like Constellation Energy (CEG) and Talen Energy (TLN). Constellation's market cap is $110.99 billion, with a 62% stock increase year-to-date.
It reported Q3 adjusted EPS of $3.04 and revenue of $6.57 billion, exceeding revenue estimates but slightly missing EPS expectations. Analysts from KeyBanc, Wells Fargo, UBS, and JPMorgan maintain bullish ratings based on Constellation's nuclear scale and demand visibility.
Talen Energy operates the Susquehanna nuclear plant in Pennsylvania, valued at about $17 billion and up 89% year-to-date. Talen's Q3 EPS was $4.25, with revenue of $812 million, both exceeding estimates.
Talen expanded a power deal with Amazon Web Services to supply up to 1,920 megawatts through 2042. Analysts from Wells Fargo and Morgan Stanley also maintain bullish ratings for Talen, which has a Strong Buy rating and nearly 20% upside compared to CEG's Moderate Buy rating and 13% upside.
