20 Under The Radar AI Stocks

5. Constellation Energy Corporation (NASDAQ:CEG)

Number of Hedge Fund Holders: 71 

Constellation Energy Corporation (NASDAQ:CEG) generates and sells electricity in the United States. The rising demand for power driven by AI data center construction has brought energy companies into the spotlight. Earlier this week, Morgan Stanley projected that increasing electricity prices would favor companies like Constellation Energy Corporation (NASDAQ:CEG) in the coming months. The investment bank anticipates that capacity prices in much of the PJM region could reach a $695/MW-day price cap, more than double the previous record of $270/MW-day set in the PJM July capacity auction, due to tight power supplies.

Morgan Stanley predicts that this potential surge in capacity prices for the 2026-27 delivery year auction, scheduled for December, could lead to higher energy bills. Combined with the earlier capacity auction, the next auction could cause residential electricity bills to rise by approximately 20%, according to the bank’s market experts. Morgan Stanley has an Overweight rating on Constellation Energy Corporation (NASDAQ:CEG) stock with a $233 price target.