We recently published a list of Top 10 AI Stocks to Watch In February. In this article, we are going to take a look at where Constellation Energy (NASDAQ:CEG) stands against other top AI stocks to watch in February.
Barry Bannister, Stifel’s chief equity strategist, said in a latest program on CNBC that the macroeconomic factors are finally catching up to the AI-led bull market. He expects inflation to remain sticky and no further rate cuts from the Federal Reserve in the short term. The analyst also rejected the notion that the massive tech selloff after the launch of DeepSeek was a buying opportunity.
“Over 30 years ago, we used to joke about how technology was such a displacement event business where new competitors would come in and destroy the entrenched stocks, that it deserved a lower multiple because of that. It’s a short life cycle business that’s got a very short competitive advantage period. But investors forgot about that. They bid up the stocks. The growth relative to value large-cap total return, one divided by the other on a 10-year compound basis, reached the absolute outer limits of the past 90 years. And that exact limit line is exactly where it peaked—the price earnings multiple and the outperformance of growth. So, for us, it’s just a very bubbly market that’s just gotta take some air out of it.”
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For this article, we chose 10 AI stocks currently making moves in the market. With each stock, we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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Constellation Energy (NASDAQ:CEG)
Number of Hedge Fund Investors: 78
Joe Tigay from Rational Equity Armor Fund talked about the AI-related reasons to be excited about Constellation Energy (NASDAQ:CEG) during a latest program on Schwab Network:
“Constellation, you’re going to need a company to be able to have mobile energy centers, really quick on-demand popup energy centers. So, going to be new power plants built specifically for massive data centers. So, that’s where people are betting on Constellation here, and absolutely, they are crushing it so far this year.”
Overall, CEG ranks 9th on our list of top AI stocks to watch in February. While we acknowledge the potential of CEG, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. 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 is originally published at Insider Monkey.
