Jim Cramer Recently Talked About These 11 S&P 500 Stocks

1. Constellation Energy Corporation (NASDAQ:CEG)

Number of Hedge Fund Holders: 78

Constellation Energy Corporation (NASDAQ:CEG) is an energy provider involved in producing and distributing electricity from a variety of sources, such as nuclear, wind, solar, natural gas, and hydroelectric power. Cramer started the list of the best performers of the S&P 500 in January with the company and discussed:

“When you look at the five best performers in the S&P 500, let’s see, what do you get? Constellation Energy is first and Vistra is fourth. Those are both nuclear power plays… When you look at Constellation and Vistra, look, these nuclear stocks have had explosive multi-year moves as the data center build-out has created this electricity shortage around the whole country and nuclear remains the preferred power source for any company that cares about climate change.

Now we got some huge data center announcements from Microsoft [and] Meta last month, then Oracle, SoftBank, and OpenAI teamed up to form something called Stargate with a $500 billion AI infrastructure plan that was announced at the White House on President Trump’s first full day in office. In response, stocks like Constellation and Vistra soared, but then DeepSeek happened and Wall Street’s now trying to figure out if the Tech Titans have been spending way too much money on AI hardware.”

Cramer noted that the company was severely impacted in response, however, it still finished January strong. Cramer noted that nuclear stocks like Constellation Energy (NASDAQ:CEG) typically perform well only when there is clear demand, like in data centers. He also mentioned that while Scott Strazik, CEO of GE Vernova, has become more optimistic about receiving new nuclear plant orders, these projects take years to complete, making short-term gains unlikely.

While we acknowledge the potential of Constellation Energy Corporation (NASDAQ:CEG) as an investment, our conviction lies in the belief that 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 was originally published at Insider Monkey.