Will Talen Energy Corporation (TLN) Benefit from Continued AI Development?

ClearBridge Investments, an investment management company, released its “ClearBridge Value Strategy” second quarter 2025 investor letter. A copy of the letter can be downloaded here. The investment landscape appears thriving on the surface but chaotic underneath due to geopolitical tensions, deglobalization, rising debt, and supply chain disruptions. Although nominal growth is accelerating, it also brings greater volatility and unpredictability. The ClearBridge Value Strategy outperformed its Russell 1000 Value Index benchmark in the second quarter in a subdued period for value stocks. Overall stock selection contributed to the strategy’s performance in the quarter, while overall sector allocation detracted. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second quarter 2025 investor letter, ClearBridge Value Strategy highlighted stocks such as Talen Energy Corporation (NASDAQ:TLN). Talen Energy Corporation (NASDAQ:TLN) is an independent power producer and infrastructure company. The one-month return of Talen Energy Corporation (NASDAQ:TLN) was -1.03%, and its shares gained 107.92% of their value over the last 52 weeks. On July 9, 2025, Talen Energy Corporation (NASDAQ:TLN) stock closed at $272.15 per share, with a market capitalization of $12.385 billion.

ClearBridge Dividend Strategy stated the following regarding Talen Energy Corporation (NASDAQ:TLN) in its second quarter 2025 investor letter:

The ClearBridge Value Strategy outperformed in its Russell 1000 Value Index benchmark in a subdued period for value stocks. The resurgence of investor interest in the AI theme fueled strong performance of merchant power producers Vistra and Talen Energy Corporation (NASDAQ:TLN), driving relative outperformance in the utilities sector. Both companies stand to benefit from the strong, long-term trend toward higher power prices as AI development continues to require new data centers brought online and greater power supply.

gas, energy

Photo by Frédéric Paulussen on Unsplash

Talen Energy Corporation (NASDAQ:TLN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 80 hedge fund portfolios held Talen Energy Corporation (NASDAQ:TLN) at the end of the first quarter, compared to 77 in the previous quarter. While we acknowledge the risk and potential of TLN 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 TLN and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Talen Energy Corporation (NASDAQ:TLN) and shared the list of top energy and utility stocks Wall Street analysts are talking about. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.