Constellation Energy (CEG) Surged on Renewed Optimism on Data Center Deals

ClearBridge Investments, an investment management company, released its “ClearBridge Global Infrastructure Income Strategy” second quarter 2025 investor letter. A copy of the letter can be downloaded here. Markets rebounded in the second quarter of 2025 after a first-quarter correction, overcoming tariff, growth, and geopolitical concerns. Initially, stocks fell following President Trump's announcement of reciprocal tariffs on April 2, but a delay in their implementation, several bilateral trade deals, and a softer stance from Trump on China and Federal Reserve policy helped improve the outlook. Listed infrastructure proved resilient during April's market fluctuations, outperforming the broader market, and maintained stability as equities rebounded in May and June. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second quarter 2025 investor letter, ClearBridge Global Infrastructure Income Strategy highlighted stocks such as Constellation Energy Corporation (NASDAQ:CEG). Constellation Energy Corporation (NASDAQ:CEG) is a US-based utility company that produces and sells energy products and services. The one-month return of Constellation Energy Corporation (NASDAQ:CEG) was 8.53%, and its shares gained 44.44% of their value over the last 52 weeks. On July 9, 2025, Constellation Energy Corporation (NASDAQ:CEG) stock closed at $317.11 per share, with a market capitalization of $99.388 billion.

ClearBridge Global Infrastructure Income Strategy stated the following regarding Constellation Energy Corporation (NASDAQ:CEG) in its second quarter 2025 investor letter:

"U.S. electric utility Constellation Energy Corporation (NASDAQ:CEG) Energy also outperformed for the quarter. Constellation is primarily a nuclear generation company and is the largest producer of carbon-free electricity in the U.S., serving states including New York, Illinois, Maryland, Pennsylvania and New Jersey. The company’s combined generation capacity is more than 32 GW and 90% of annual output is carbon free. Constellation’s share price benefited from the renewed optimism on data center deals."

Constellation Energy Corporation (NASDAQ:CEG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 83 hedge fund portfolios held Constellation Energy Corporation (NASDAQ:CEG) at the end of the first quarter, compared to 85 in the previous quarter. While we acknowledge the potential of CEG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Constellation Energy Corporation (NASDAQ:CEG) and shared the list of top nuclear energy stocks to invest in for the next decade. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.