7. Constellation Energy Corp. (NASDAQ:CEG)
YTD Stock Performance: -15%
Philippe Laffont’s Stake: $2.08 Billion
Constellation Energy Corp. (NASDAQ:CEG) stock is up about 40% over the past 12 months but is down roughly 13% this year as optimism around its nuclear growth story has cooled. Investors were disappointed that no major new data center power deals were announced recently on its investor day, even though management said they are in the pipeline. Second, the Three Mile Island restart project — a key nuclear asset being revived to supply electricity to Microsoft data centers — has faced a major setback, with grid operator PJM indicating it may not connect to the grid until 2031, much later than expected.
The company’s full-year earnings guidance also came in slightly below estimates. But long-term optimists for the stock say the bull case is intact.
Constellation Energy Corp. (NASDAQ:CEG) is one of the biggest winners from the AI electricity boom because data centers are massively increasing demand for power. The company operates nuclear power plants, which are large facilities that generate constant, reliable electricity by using nuclear reactions. These plants provide steady, 24/7 electricity, which is exactly what AI data centers need. Management also expects earnings to grow at more than 20% annually through 2030, driven by rising electricity demand, higher pricing on new contracts, and restarting nuclear capacity. The moat is strong because nuclear power is extremely hard to replace. Building a nuclear plant takes huge capital, strict government approval, and many years.
Aristotle Atlantic Core Equity Strategy stated the following regarding Constellation Energy Corporation (NASDAQ:CEG) in its third quarter 2025 investor letter:
“Constellation Energy Corporation (NASDAQ:CEG) is the largest producer of carbon-free energy in the United States, operating the nation’s largest nuclear fleet alongside natural gas, geothermal, wind, solar and hydro assets. The company was spun off from Exelon in 2022 and serves over 2.5 million customers, generating revenue through a diversified mix of power generation and energy sales across regulated and deregulated power markets. The pending acquisition of Calpine will significantly expand its generation portfolio, combining 24/7 nuclear power with additional dispatchable gas capacity. Constellation is central to the U.S. energy transition and provides reliable, affordable and sustainable power critical to electrification, decarbonization and AI-driven data center growth.
We see Constellation well-positioned as a leading player in the energy sector, with excellent operational performance, strong cash flow generation and significant financial flexibility. The company benefits from favorable legislation like the One Big Beautiful Bill Act, which provides tax credits for nuclear energy and support for clean hydrogen. Additionally, the company is expanding its nuclear fleet at low cost, securing long-term power purchase agreements (PPAs) with major tech companies and enhancing its asset mix through strategic acquisitions. These factors collectively validate nuclear energy as a preferred clean power source for large-scale operations and data centers. The shares of Constellation trade at a modest premium to their historical average. We view this premium as justified by the company’s clean energy profile, long-duration PPAs with hyperscalers, strong cash flow generation and leverage to the ongoing structural shift in U.S. energy demand largely driven by electrification, decarbonization and digital infrastructure investment.”
