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Constellation Energy (CEG) Stock Higher After Jim Cramer Warned About Excess Optimism

Constellation Energy Corporation (NASDAQ:CEG) is one of Jim Cramer’s Hottest Nuclear Energy Stock Picks, Hits & Misses. Constellation Energy Corporation (NASDAQ:CEG) is an American independent power production firm that relies on nuclear, wind, solar, and other sources to generate electricity. Its shares are up by 37% over the past year and by 25% since Cramer discussed them in January 2025.  Between mid-February and early April, Constellation Energy Corporation (NASDAQ:CEG)’s stock dipped by 46%. Constellation Energy Corporation (NASDAQ:CEG)’s shares had also dipped in January 2025 after it was reported that the firm was interested in buying a natural gas company for $30 billion. Its shares also closed 5% lower on March 11th, which was the day a Bureau of Labor Statistics report showed that electricity prices had dipped by 0.7% month-on-month in February. In January 2025, Cramer discussed the impact of excess optimism on Constellation Energy Corporation (NASDAQ:CEG)’s shares:

“Right now, there are two utilities that generate a lot of nuclear power, Vistra and Constellation Energy, the latter of which just got a big contract with the feds, $1 billion, to expand a nuclear site. The big utilities are frantically trying to meet power demand generated by the data center revolution. I think these two stocks are now way ahead of themselves. They trade like they’ll be able to build many nuclear reactors next to the currently approved ones because siting won’t be difficult.

“Oh, that’s true but building them will be. It takes ages to construct one of these things, big overruns. Constellation’s reopening a decommissioned Three Mile Island plant with Microsoft signing a contract for 20 years worth of power. That does sound great, but I think the process of restarting a dead nuclear power plant won’t be easy. But hey, at least Constellation and Vistra’s real, even if their stocks have gotten overextended.”

While we acknowledge the risk and potential of CEG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CEG and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.

Disclosure: None. Follow Insider Monkey on Google News.

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