10 Hottest Large-Cap Stocks So Far in 2025

1. Constellation Energy (NASDAQ:CEG)

• YTD Performance: 19%.

Constellation Energy (NASDAQ:CEG) is an energy and natural gas company. It is up 19% year-to-date after agreeing to acquire Calpine in a cash and stock deal valued at $16.4 billion. This would make Constellation Energy the largest U.S. power generator and I believe that there’s some solid potential ahead.

CEG stock nearly doubled in 2024 and has already started 2025 on a solid note. Even the critics have to concede that their balance sheet has become pretty robust. If we do see AI start to drive up energy demand significantly in the coming years, I think Constellation Energy can maintain the momentum. That said, I am worried that if the data center demand cools down, you could easily see a 30%-plus correction here.

J.P. Morgan recently reiterated its Buy rating and bumped its price target to $348. It also stated in its 2025 outlook that “Investors looking to capitalize on the growing demand for power can focus on broad infrastructure funds, power generation and utility companies.”

While we acknowledge the 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 but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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