Constellation Partners with Microsoft to Revive Nuclear Plant for AI Data Center Power Needs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3h ago
0mins
Source: Fool
- Surging Power Demand: According to MIT Technology Review, by 2028, AI's electricity consumption is projected to account for 22% of U.S. household electricity, posing significant challenges to power infrastructure.
- Nuclear Collaboration: Constellation Energy has partnered with Microsoft to revive a nuclear plant in Pennsylvania, which is expected to generate 835 megawatts of power at capacity, aimed at providing clean energy for data centers and reducing pollution.
- Stable Growth Outlook: Constellation anticipates a 10% compound annual growth rate in earnings per share through 2028, indicating robust financial performance amid rising electricity demand.
- Dividend Yield: With a dividend yield of 0.46% and consistent growth over the past three years, Constellation demonstrates potential as a stable growth stock within an AI investment portfolio.
Analyst Views on CEG
Wall Street analysts forecast CEG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CEG is 403.30 USD with a low forecast of 347.00 USD and a high forecast of 478.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
8 Buy
3 Hold
0 Sell
Moderate Buy
Current: 322.540
Low
347.00
Averages
403.30
High
478.00
Current: 322.540
Low
347.00
Averages
403.30
High
478.00
About CEG
Constellation Energy Corporation is a producer of emissions-free energy and an energy supplier to businesses, homes and public sector customers nationwide. The Company’s nuclear, hydro, wind, and solar generation facilities have the generating capacity to power the equivalent of 27 million homes, providing about 10% of the nation’s clean energy. Its segments include Mid-Atlantic, Midwest, New York, ERCOT, and Other Power Regions. Through its integrated business operations, it sells electricity, natural gas, and other energy-related products and sustainable solutions to various types of customers, including distribution utilities, municipalities, cooperatives, commercial, industrial, public sector, and residential customers in markets across multiple geographic regions. It operates approximately 55 gigawatts of capacity from nuclear, natural gas, geothermal, hydro, wind and solar facilities.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
