Constellation Energy (NASDAQ: CEG) – Powering Growth with Nuclear Energy and AI
Nuclear energy is gaining steam in 2025, thanks to timely policy shifts and increasing demand from energy-intensive industries like artificial intelligence (AI). One of the most significant developments is the U.S. Treasury’s updated hydrogen tax credit rules, which now include nuclear power. This change could unlock billions in funding for hydrogen production projects, putting nuclear energy at the forefront of clean hydrogen initiatives and enhancing its role in global decarbonization efforts.
Constellation Energy is leading this transformation. Operating 21 nuclear reactors across the Midwest and Northeast, the company is a cornerstone of U.S. nuclear power infrastructure. In 2024, Constellation’s stock soared 91%, supported by major partnerships and government contracts. Notably, the company inked a 20-year deal with Microsoft to supply nuclear energy to power AI data centers, highlighting the growing reliance on zero-carbon energy solutions for the digital future.
Additionally, Constellation secured an $840 million contract to supply power to federal agencies, further cementing its role as a critical energy provider. Management expects annual earnings growth of at least 13% through 2030, driven by a robust pipeline of deals, the benefits of hydrogen tax credits, and rising demand for clean, consistent energy from tech giants like Microsoft, Meta, and Amazon.
The company’s appeal extends beyond its current operations. The rise of small modular reactors (SMRs)—a cost-effective and scalable nuclear technology—offers another layer of growth potential. While still in development, SMRs are attracting high-profile investors such as Bill Gates and Sam Altman, signaling strong future demand.
For investors, Constellation Energy offers a compelling mix of stability and growth. The company’s reliable dividend, combined with its leading position in nuclear energy and innovative partnerships, makes it a standout in the rapidly evolving energy sector. As the clean energy transition accelerates, Constellation’s strategic moves and strong market presence make it a stock worth watching closely in 2025.
Investors looking for exposure to a transformative energy play that combines cutting-edge technology with established infrastructure should consider Constellation Energy as a top pick.
