10 Hot AI Stocks to Buy Now

3. Constellation Energy Corporation (NASDAQ:CEG)

Magnitude of revision in street 2026 EPS estimates: +42%

Number of Hedge Fund Holders: 78

Constellation Energy Corporation (NASDAQ:CEG) is exposed to the AI trend primarily due to its investments in innovative technologies that enhance operational efficiency, improve energy optimization, and support sustainability. As energy markets face increasing pressure for smarter, more efficient grid management and resource allocation, AI-driven solutions can provide significant benefits – AI is well-suited for predictive maintenance of energy infrastructure, real-time analytics to forecast demand, and optimize generation and distribution. As such, CEG’s push to adopt and integrate AI into its operations aligns with broader industry trends aiming to modernize energy systems. The stock has surged by more than 113% in the past 12 months, ranking number 3 on our list of hot stocks to buy.

The commoditization of AI’s impact on the data center expansion and the energy demand to power the related infrastructure look favorable right now. Furthermore, the intensifying competition between China and the West could further fuel the race for state-of-the-art GPUs and efficient energy to power them. In this context, Constellation Energy Corporation (NASDAQ:CEG) is making strategic moves to boost its scale and capabilities –  the company announced the acquisition of Calpine for an effective enterprise value of $26.6 billion, to create the largest, cleanest, and most reliable fleet in the nation, with a coast-to-coast presence that positions it to meet growing energy needs. As a result, the already accelerating future EPS growth estimates due to the AI and energy megatrends will be further boosted by the M&A deal being more than 20% accretive to 2026 earnings. The transaction is expected to close in Q4 2025, subject to regulatory approvals, with the company planning to take a proactive approach to resolving potential market power concerns through asset divestitures.