Goldman Sachs’ Best Phase 2 AI Stocks: Top 24 High Conviction AI Stocks

5. Constellation Energy Corporation (NASDAQ:CEG)

Year To Date Share Price Gain: 130.99%

Number of Hedge Fund Investors in Q2 2024: 71

Constellation Energy Corporation (NASDAQ:CEG) is nearly a pure play clean energy company. The firm generates 32 gigawatts of electricity, out of which 90% comes from clean sources such as nuclear. Its shares have been one of the top performing in the energy industry this year, primarily due to Constellation Energy Corporation (NASDAQ:CEG)’s role as one of America’s biggest nuclear power generation companies. Nuclear power has seen renewed attention from big banks who are eager to open their wallets to rely on it to meet climate goals. This has been met by big tech eager to find clean energy capable of meeting high baseload requirements simultaneously. Nuclear is suited to its use case as it does not depend on time dependent sunlight or wind for power generation. The tech demand is a big reason Constellation Energy Corporation (NASDAQ:CEG)’s stock has gained 130.99% year to date. From the start of the year to September 19th, the shares were up an already impressive 81%. Then, Microsoft announced it would restart the Three Mile Island nuclear reactor for AI power, which sent Constellation Energy Corporation (NASDAQ:CEG)’s shares soaring by 22%.

Constellation Energy Corporation (NASDAQ:CEG) shared its insights into data center demand during theQ2 2024 earnings call:

“I understand why there is a lot of attention on that, but we don’t want to leave this topic without saying that we are making great progress on power sales for on grid data centers through our 24/7 product. Utilities across PJM, and I think you’ve seen this in a bunch of the earnings calls, have been highlighting the growth of data centers in their service territory. In total, as you could see on Slide 6, they now identified 50 gigawatts or more that would come in over time. Now look, in fairness, I think there’s a bunch of duplication in those numbers and it’s going to occur over a longish time line. But the point is, I think it’s powerful that everyone is seeing the same thing, growth in this area. And those growth opportunities are good for Constellation because each of these grid data center projects, whether they’re located in Illinois, Ohio or anywhere else in PJM or in other regions, they present an opportunity for our commercial team to sell clean and reliable power through our 24/7 product and other offerings to these clients.”