CEG, OKLO, and SMR Get Set to Power the AI Boom via Nuclear Energy

TipRanks

Sat, Jun 7, 2025, 4:42 PM 5 min read

The nuclear energy sector is experiencing a resurgence unseen in decades, driven largely by its potential to power the burgeoning AI revolution. Major technology companies such as Meta (META), Microsoft (MSFT), and Alphabet (GOOGL) are competing to secure reliable energy sources for their expanding data centers, and nuclear power’s clean, consistent output has positioned it as a key player in this race.

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Leading this revival are three companies—Constellation Energy (CEG), Oklo (OKLO), and NuScale Power (SMR)—each bringing a distinct approach to the nuclear landscape. Over the past year, all three have outperformed the market, capturing investor attention amid rising energy demand.

Constellation Energy is the 800-pound gorilla of U.S. nuclear power, and it’s just landed a deal that’s got everyone’s attention. Just two days ago, CEG signed a 20-year power purchase agreement with Meta to deliver 1.1 gigawatts from its Clinton Clean Energy Center in Illinois, starting in 2027. This isn’t an ordinary contract, but rather a lifeline for a plant that was on the verge of closure when its zero-emissions credits expire. The deal, which also boosts Clinton’s output by 30 megawatts, underscores CEG’s ability to secure tech giants. Microsoft is already on board with a Three Mile Island restart.

What makes CEG a one-of-a-kind destination for tech titans is its scale. With 94 reactors across the U.S., they’re a one-stop shop for tech companies chasing net-zero goals while powering AI workloads. Their shift away from co-located data center plans to grid-connected projects, as noted in last month’s update, indicates they’re adapting to regulatory hurdles, such as FERC’s rejection of expanded co-location deals.

Moreover, the Meta deal demonstrates that CEG can pivot and still secure massive contracts. Sure, their stock’s run-up makes it a bit daunting to be bullish on today, but with AI data centers projected to eat up 9% of U.S. electricity by 2030, CEG’s infrastructure could be a cash cow in waiting.

Currently, most analysts are bullish on CEG stock. The stock features a Moderate Buy consensus rating based on eight Buy and five Hold ratings assigned in the past three months. No analyst rates the stock a sell. CEG’s average stock price target of $319.45 implies ~10% upside over the next twelve months, despite shares having already rallied 30% year-to-date.