10 AI Stocks Gaining Momentum Right Now

7. Constellation Energy Corporation (NASDAQ:CEG)

Number of Hedge Fund Holders: 85

Constellation Energy Corporation (NASDAQ:CEG) is an energy provider specializing in clean, carbon-free energy solutions. On February 24, DBS analyst Elizabelle Pang maintained a “Hold” rating on the stock and set a price target of $300.00. Even though Constellation holds considerable potential, risks associated with the company’s current market position have led to the hold rating. Discussing its potential, the firm highlighted how Constellation’s recent announcement to acquire Calpine Corporation, driven by the proliferation of AI data centers and the electrification of transportation and buildings, has been a strategic move for the company.

The firm stated that the move could meaningfully enhance its scale and earnings from 2026 onwards, owing to an attractive acquisition multiple. However, one concern that remains is the exposure to natural gas prices which could impact future profitability. The firm said that despite these promising prospects, the current valuation of CEG’s stock is high, trading at a forward PE of 30x. This is significantly above its historical average. There are also potential risks such as extreme weather conditions affecting power prices, uncertainties in policy, and inflationary pressures on fuel expenses, that could be challenging for Constellation.