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In recent months, Constellation Energy has drawn increased attention as the largest US nuclear operator supplying carbon-free power to AI data centers under long-term contracts, reinforcing its role in grid reliability and rising baseload demand.
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This spotlight on nuclear’s revival underscores how Constellation’s high-margin generation fleet and emissions-free profile are becoming central to meeting power-hungry digital infrastructure needs.
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We’ll now examine how Constellation’s growing role in powering AI data centers could reshape its investment narrative and risk-reward profile.
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To own Constellation Energy, you need to believe that demand for carbon free baseload power from data centers and corporates will keep underpinning long dated, premium contracts across its nuclear fleet. The recent focus on AI data center load seems supportive for that thesis in the near term, but it also sharpens the main risk today: growing dependence on a concentrated set of hyperscale customers and any policy response to their energy use.
Against this backdrop, the recent NRC license renewals for the Clinton and Dresden Clean Energy Centers are especially relevant, since they extend the operating runway of key nuclear assets that can supply long term, 24/7 clean power under contracts like the Meta agreement starting in 2027. Those approvals help align asset life with rising AI driven baseload demand, but they do not remove the longer term regulatory, decommissioning, and contract concentration risks that still sit in the story.
Yet behind the appeal of long term AI power deals, investors should be aware that concentrated exposure to a handful of hyperscalers could…
Read the full narrative on Constellation Energy (it’s free!)
Constellation Energy’s narrative projects $26.7 billion revenue and $3.6 billion earnings by 2028. This requires 2.5% yearly revenue growth and a $0.6 billion earnings increase from $3.0 billion today.
Uncover how Constellation Energy’s forecasts yield a $399.93 fair value, a 9% upside to its current price.
CEG 1-Year Stock Price Chart
Eleven fair value estimates from the Simply Wall St Community span roughly US$238.8 to US$399.93, underscoring how far apart individual views can be. Before you lean one way, weigh that wide dispersion against Constellation’s growing dependence on large hyperscale contracts and what that could mean for future earnings resilience, then explore several alternative viewpoints.