Yahoo Finance AI Goes Nuclear: 2 Energy Stocks Set to Benefit
We’ve all grown accustomed to the positivity surrounding the artificial intelligence frenzy, as the topic is in nearly every market headline.
Of course, beloved Nvidia has been leading the charge, with several other large-cap technology companies also set to benefit.
But for those looking for unique exposure to the trade, nuclear stocks should be considered, as data centers use a remarkable amount of power to operate. That’s precisely where several energy companies, namely Constellation Energy CEG and Vistra VST, come into play.
Market participants have taken note of their favorable stance, with each enjoying strong performance over the last year.
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Let’s take a closer look at each.
Vistra Envisions Long-Term Growth
Vistra safely operates a reliable, efficient, power generation fleet of natural gas, nuclear, coal, solar, and battery energy storage facilities with an innovative, customer-centric approach. The stock sports a Zacks Rank #1 (Strong Buy), with its earnings outlook moving higher nearly across all timeframes.
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Burke, CEO, concluded its latest quarterly results by stating, "Recent power market developments are certainly notable, and we see multiple drivers underlying a projected long-term acceleration in load growth in many of the geographies we serve. The increase in our potential long-term financial expectations reflects the attractive position provided by our integrated business mode.”
Shares have cooled considerably from their high, down 16% since and reflecting a potential opportunity for investors looking to join the momentum.
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Constellation Energy Enjoys Robust Results
Constellation Energy is the Nation’s largest producer of clean, carbon-free energy and a leading supplier of energy products and services. Analysts have taken note of its favorable stance, increasing their earnings estimates accordingly across the board.
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Joe Dominguez, CEO, on the company’s latest set of quarterly results, ‘We had another strong quarter as support grows for nuclear energy as a reliable, clean source to meet growing demand from electric vehicles, heavy industry and emerging technologies, such as AI and related digital infrastructure.’
Bottom Line
The artificial intelligence theme is undoubtedly here to stay for some time, with many different angles to play the frenzy.
Data centers reflect one of these angles, but those who keep the lights on within data centers are a deeper play, precisely where Constellation Energy CEG and Vistra VST come into play. For those looking to obtain exposure, both stocks can’t be overlooked.
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