We recently published a list of 10 AI Stocks Making Waves on Wall Street. In this article, we are going to take a look at where Constellation Energy Corporation (NASDAQ:CEG) stands against other AI stocks making waves on Wall Street.
Ivan Tsarynny, Feroot Security CEO, joined CNBC’s ‘The Exchange’ to discuss his Congressional testimony about TikTok. According to Tsarynny, China is collecting information on Americans through applications such as TikTok to train AI. This training is being done in hopes of helping them win the AI race. He said that TikTok is present in a lot of websites and places where it can obtain information on Americans who don’t even use the app. He also said that it is required under Chinese law to disclose data when requested and that companies that are required to share the information may also need to keep it confidential so we may not even know that the data was shared with the CCP.
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This is probably why the Supreme Court said that the application needs to be divested considering that it may be collecting information on Americans and diverting it to China. When asked whether Tiktok is the only application that is suspected of doing so, he said that Tiktok is probably the biggest application, but not the only one. Tsarynny also said that the kind of information being collected includes everything you do on the app and anything it might be able to access on the phone. Another area is data collection on websites where tracking pixels collect your details. While not easy or commonly done, users can use privacy browser extensions or tools to block pixel trackers and other tracking tools.
Banned for a short period over data security concerns, TikTok began restoring its services on Sunday after President-elect Donald Trump said he would revive the app’s access in the U.S. after he returns to power, which is today, January 20th. In response, TikTok thanked Trump for “providing the necessary clarity and assurance to our service providers that they will face no penalties (for) providing TikTok to over 170 million Americans and allowing over 7 million small businesses to thrive”. This gratitude comes at a tense moment in US-China relations.
Amidst all these events, U.S. search engine startup Perplexity AI also submitted a bid on Saturday, January 18, to TikTok’s Chinese parent ByteDance. The bid suggested Perplexity to merge with TikTok U.S., creating a new entity by combining the merged company with New Capital Partners. The company believes that its bid may be successful since the proposal is a merger rather than a sale.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.
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).
A close up of a wind turbine producing electricity as the sun sets.
Constellation Energy Corporation (NASDAQ:CEG)
Number of Hedge Fund Holders: 78
Constellation Energy Corporation (NASDAQ:CEG) is an energy provider specializing in clean, carbon-free energy solutions. On January 14, Jefferies raised the firm’s price target on Constellation Energy (NASDAQ:CEG) to $274 from $234 and kept a “Hold” rating on the shares. The rating has been issued after the Calpine acquisition deal which Jefferies has termed as “positive and value accretive”. The agreement, announced on January 10, aims to offer the broadest array of energy products and services available in the industry. It has resulted in the company being one of the largest clean energy providers by combining emissions-free electricity, low-emission natural gas, and renewable energy to serve 2.5 million customers. According to Jefferies, Constellation prices in a “lot of data center value today”, more than its peers. However, the analyst told investors in a research note that there is “a favorable risk/reward skew in a bullish data center contracting scenario”.
Overall, CEG ranks 4th on our list of AI stocks making waves on Wall Street. 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 is originally published at Insider Monkey.
