Top 10 AI Stocks on Latest Analyst Ratings and News

3. 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 10, the company revealed that it has agreed to buy privately held natural gas and geothermal company Calpine Corp for $16.4 billion. This cash-and-stock deal is driven by the rapid growth of AI data centers that require huge amounts of energy to power them. Deemed as one of the biggest acquisitions in U.S. power industry history, the transaction valued Calpine at $26.6 billion, including debt. The agreement will turn Constellation into the largest U.S. independent power provider, potentially adding $2 billion to Constellation’s free cash flow annually. According to Constellation, the deal would allow the companies to have nearly 60 gigawatts (GW) of capacity from zero- and low-emission sources, including nuclear, natural gas, and geothermal. Constellation’s employee base is also expected to grow by nearly 20% to 16,500.

“Demand for our products is expected to grow by levels we haven’t seen in a lifetime”.

-Constellation CEO Joe Dominguez said on a call with investors following the announcement.