We recently compiled a list of the 10 Best Performing AI Stocks in 2025. In this article, we are going to take a look at where Constellation Energy Corporation (NASDAQ:CEG) stands against the other AI stocks.
Even amidst the DeepSeek frenzy, artificial intelligence remains the most prevalent theme in the market today. Surging enterprise adoption, expanding use cases, and increasing artificial intelligence infrastructure have led to the AI surge. DeepSeek’s claims that its AI models are more efficient and less costly have now been deemed “largely understated” by several analysts and investors in the tech world. More importantly, tech giants continue their AI investment sprees, demonstrating that the global AI arms race is far from over.
READ NOW: Weekend Roundup: Top 10 AI Stocks on Latest News and Ratings and Top 14 AI Stocks on Wall Street: News and Analyst Ratings
Recent earnings reports signify that the combined capital expenditures for these tech giants are set to exceed $320 billion in 2025. This is despite investors questioning whether such huge AI spending is even justified when AI models can be developed cheaper and more efficiently. These people are worried that the AI arms race may turn into an expensive gamble. Tech executives are not worried, however. According to them, cheaper artificial intelligence is only going to lead to a higher demand for AI products.
Some analyst firms seem to agree. Here is what Dan Ives from Wedbush Securities has to say:
“Huge week for Big Tech earnings as Zuckerberg, Nadella, Cook, and Musk doubled down on their AI visions and what this means for each of these tech stalwarts looking ahead,” he said in an X post last month. “This is an AI arms race and the Temu of AI DeepSeek not changing that…AI Revolution just starting.”
Even Sundar Pichai, Google’s CEO, has been all praises for DeepSeek, stating that it has done good work that showed how global artificial intelligence is. He stated how he previously anticipated that his company would be the leading player in the AI space, but noted that others would be there in that space too.
With AI investments soaring and competition heating up, the market continues to reward companies that demonstrate strong execution in the artificial intelligence sector. These companies are capitalizing on the AI boom through their strategic investments, market leadership, and strong earnings growth. Let’s move on to explore them.
For this article, we compiled an initial list of AI stocks using ETFs and financial media reports. From this pool, we selected the best-performing AI stocks based on their year-to-date (YTD) performance, as of February 14. 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)
Year-to-Date (YTD) Performance: 41.84%
Number of Hedge Fund Holders: 78
Constellation Energy Corporation (NASDAQ:CEG) is an energy provider specializing in clean, carbon-free energy solutions. It is a strong long-term investment in energy and artificial intelligence, and its year-to-date performance justifies this optimism.
On January 30, BofA lowered the firm’s price target on the stock to $366 from $380 and kept a “Buy” rating on the shares. The rating followed the broad market sell-off following news of the emergence of DeepSeek and its cheaper and more efficient AI models. Investors were concerned that DeepSeek’s models could drastically reduce the need for electricity to power data centers.
Analysts from BofA noted that the selloff was “an overreaction to this news”. The firm said that data center demand is likely to stay strong over the intermediate term, but there is “a lower probability of the mega growth bull case” over the longer term.
Overall CEG ranks 5th on our list of the best performing AI stocks in 2025. 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 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.
READ NEXT: 20 Best AI Stock To Buy Now and Complete List of All AI Companies Under $2 Billion Market Cap.
Disclosure: None. This article is originally published at Insider Monkey.
