Is CEG a good stock to buy? We came across a bullish thesis on Constellation Energy Corporation on Darius Dark Investing’s Substack. In this article, we will summarize the bulls’ thesis on CEG. Constellation Energy Corporation’s share was trading at $251.65 as of June 9th. CEG’s trailing and forward P/E were 21.86 and 21.37 respectively according to Yahoo Finance.
Constellation Energy Corporation (CEG) is increasingly emerging as one of the most strategically important energy infrastructure companies in the United States, yet the market continues to value it like a traditional utility rather than a critical enabler of the global AI economy. The company operates the nation’s largest fleet of nuclear reactors, generating roughly 20% of U.S. nuclear electricity, while its recent acquisition of Calpine transformed it into the world’s largest private-sector power producer with significant natural gas and geothermal assets.
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This positioning allows Constellation to provide the uninterrupted, carbon-free baseload power required by hyperscale AI data centres, a capability intermittent renewable sources cannot currently match. The growing scarcity of reliable electricity across the U.S. grid has significantly strengthened Constellation’s pricing power, as evidenced by long-term agreements with Microsoft and Meta to secure nuclear energy for their expanding AI infrastructure.
Microsoft’s willingness to support the multi-billion-dollar restart of the former Three Mile Island facility demonstrates the increasing strategic value of Constellation’s assets. The Calpine acquisition further enhances the company’s ability to meet immediate data centre demand while creating substantial free cash flow and commercial synergies.
Additionally, tightening U.S. energy policy and nuclear incentives have reinforced Constellation’s regulatory advantages and widened barriers to entry for smaller competitors. Despite recent share price weakness following temporary earnings concerns and acquisition-related uncertainty, Constellation continues to generate strong cash flows, expand earnings, repurchase shares, and grow dividends, while remaining uniquely positioned at the centre of the accelerating AI-driven power demand cycle.
Previously, we covered a bullish thesis on Constellation Energy Corporation (CEG) by jackandjillonthehill in March 2025, which highlighted expanding nuclear margins, rising electricity prices, and undervaluation relative to traditional utilities despite superior ROE and growing AI-driven power demand. CEG’s stock price has appreciated by approximately 15.15% since our coverage. Darius Dark Investing shares a similar view but emphasizes Constellation’s AI infrastructure positioning and Calpine acquisition synergies.
Constellation Energy Corporation is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 79 hedge fund portfolios held CEG at the end of the first quarter which was 76 in the previous quarter. 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.
Disclosure: None.
