Is CEG stock the biggest winner from the AI power boom?

Constellation Energy shares surged more than 4% in overnight trading after a report said Alphabet is close to a multiyear nuclear power agreement with the company. The potential deal, reportedly worth $1 billion or more, has strengthened investor optimism around nuclear energy's role in meeting the AI industry's rapidly growing electricity demand. (Sources: Stocktwits, Reuters, MarketWatch)

Alphabet is reportedly close to an agreement to purchase nuclear power from Constellation Energy under a multiyear deal that could be worth $1 billion or more. The agreement could be announced as soon as this week, although neither company has officially confirmed the reported deal.

Constellation's reported Google agreement would add to its growing portfolio of long-term contracts with technology companies. The company has already signed a 20-year power purchase agreement with Amazon covering 690 MW from its Calvert Cliffs nuclear plant, while Microsoft has a separate 20-year agreement linked to the restart of Three Mile Island Unit 1.

CEG closed at $267.62 on October 5, gaining 3.93%, before extending its advance in overnight trading. Despite the recent rally, the stock remains well below its 52-week high of $412.70, highlighting both the strong recovery potential and the volatility surrounding the nuclear-energy play.

The rapid expansion of AI data centres is creating enormous demand for reliable electricity, putting nuclear power in the spotlight. Long-term agreements with Google, Amazon and Microsoft could give Constellation greater revenue visibility while positioning the company as a major beneficiary of the growing race to secure power for AI infrastructure.

(Disclaimer: This slideshow is based on inputs from agencies. These do not represent the views of The Economic Times)