Billionaire Investors Are Betting Big on Constellation Energy (CEG) for Nuclear Power Growth

We recently released a compilation of the 10 Top Nuclear Energy Stocks That Millionaires Are Buying According To Reports In this piece, we will examine how Constellation Energy Corporation (NASDAQ: CEG) measures up against other top nuclear energy companies.

Currently, nuclear power generates slightly below 10% of the worldwide electrical output, making it the second largest producer of low-carbon electricity globally. The share from nuclear power is anticipated to increase substantially since more than 70 gigawatts of additional nuclear capability are currently being built across the globe. Moreover, upwards of 40 nations plan to enhance the contribution of nuclear energy within their respective energy frameworks. In the U.S., although accounting for fewer than 8% of operational capacities nationwide, nuclear energy supplied over 19% of all generated electricity in 2024.

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Nuclear power has become prominent in fueling the expanding AI industry along with its associated data centers. As per recent projections from Deloitte, the electrical needs of these data centers might increase five times over to reach around 176 gigawatts by 2035. It is anticipated that roughly one-tenth of this requirement will likely be satisfied through nuclear sources. In fact, just a few weeks ago during the side events at the CERAWeek conference held in Houston, numerous major technology corporations committed themselves to backing an initiative aimed at boosting global nuclear energy output threefold by mid-century.

However, the challenge lies in the fact that numerous such projects require several years to become operational, with some potentially taking a decade or longer. These initiatives come at enormous costs, typically measured in billions of dollars, and frequently encounter issues concerning construction schedules and budget overruns, which may affect their financial feasibility and competitive edge. One potential answer comes in the shape of Small Modular Reactors (SMRs), each capable of generating up to 300 megawatts of power. These reactors promise faster deployment along with better opportunities for reducing expenses. Additionally, they can be manufactured in factories using standardized components and are considered versatile enough to serve individual clients, such as data centers or industrial complexes. According to the International Energy Agency (IEA), under supportive conditions, SMR deployments might achieve around 80 gigawatts by 2040, representing approximately 10 percent of global nuclear energy production capacities.

Even with an unprecedented rise in demand, many nuclear energy stocks have experienced considerable drops during the past year because of the falling uranium prices, which have plummeted about 37% since January 2024. This downturn partly results from escalating tensions between the U.S. and Canada—the biggest source of uranium for the U.S. market. Additionally, expectations regarding the possible removal of sanctions on Russia—a leading provider of enriched uranium to the American commercial sector in both 2022 and 2023—are also contributing factors to the lower uranium costs.

However, the country banned the import of Russian uranium last year, with the aim of incentivizing domestic manufacturing. The Department of Energy was also awarded $2.7 billion in funding, in an attempt to spur the growth of the US nuclear fuel supply chain. As a result, five US facilities in Wyoming and Texas have spurred a 24% increase in domestic uranium production throughout 2024. Moreover, after President Trump recently ordered a probe into potentially imposing tariffs on critical mineral imports, including uranium, investors are piling in to acquire stakes in domestic uranium companies.

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Our Methodology

For gathering information for this article, we examined the database from Insider Monkey covering billionaire holdings and selected the top 10 firms within the nuclear energy industry that attracted the most hedge fund backers during the fourth quarter of 2024. In cases where multiple companies were tied regarding the count of billionaire investors, they were ordered based on their respective market capitalizations at the time of our research. Here are those rankings: Top Nuclear Energy Stocks as Perceived by Billionaires .

At Insider Monkey, we have an intense focus on the stocks favored by hedge funds. This interest stems from our findings which indicate that mimicking the top choices made by leading hedge funds allows us to surpass market performance. Each quarter, our quarterly newsletter suggests 14 small-cap and large-cap stocks through this approach, achieving returns of 275% since May 2014, thereby exceeding its benchmark by 150 percentage points. see more details here ) .

Constellation Energy Corporation (NASDAQ: CEG )

Number of Billionaire Owners: 17

Constellation Energy Corporation (NASDAQ: CEG), the leading generator of emission-free power in the U.S., has around 34,200 megawatts of production capability derived from various sources including nuclear, wind, solar, natural gas, and hydropower facilities.

Constellation Energy Corporation (NASDAQ:CEG) had a strong Q4 2024 as its revenue of $5.38 billion beat estimates by $633.73 million. The company’s adjusted EPS of $2.44 was also above expectations of $2.14. CEG also remains committed to its shareholders and bought back $1 billion of its common stock in FY 2024, in addition to increasing its annual dividend by 25%. The company now aims to grow its yield by another 10% in 2025.

Constellation Energy Corporation (NASDAQ:CEG) is further broadening its reach with a recent binding agreement to purchase Calpine Corp., which specializes in natural gas and geothermal power. This $26.6 billion deal will establish the 'country's leading supplier of clean energy,' featuring approximately 60 gigawatts of capability sourced from zero- and low-carbon emissions facilities. Indeed, CEG is currently positioned within the top ranks in this sector. 10 Top Clean Energy Stocks That Millionaires Are Buying According To Billionaires .

Recently, Citigroup revised its assessment of Constellation Energy Corporation (NASDAQ:CEG), moving from a Neutral stance to a Buy recommendation, setting a target price of $232. Over the past year, shares of CEG have seen an increase of over 18%, even as the broader energy sector faces challenges due to recent downturns.

Overall, CEG ranks 3rd On our roster of top nuclear energy stocks favored by billionaires, although we recognize CEG’s growth prospects, we’re more inclined toward AI stocks as they present a stronger case for generating substantial profits over a brief period. An AI equity has surged since the start of 2025 even though many leading AI shares have declined roughly 25% during the same timeframe. Should you seek an AI investment with better upside potential compared to CEG yet trades below five times its earnings, explore our detailed analysis on such opportunities. cheapest AI stock .

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Disclosure: None. This piece was initially published at Insider Monkey .