Nuclear Stocks CEG and VST Power the AI Boom

Constellation Energy Corporation (CEG) and Vistra (VST), two of the most exciting names in the utilities sector, reported solid second-quarter earnings this morning. Both companies are emerging as key beneficiaries of the AI-driven surge in electricity demand, thanks in large part to their leadership in nuclear power. Constellation operates the largest nuclear fleet in the US with 21 reactors producing 19,400 MW, while Vistra ranks second with six reactors generating 6,400 MW.

Each stock has demonstrated strong price momentum and sits just below all-time highs, reflecting investor conviction in the long-term AI power theme.

Constellation Energy Corporation: Shares Consolidate After Earnings Beat

Constellation reported adjusted EPS of $1.91, beating the $1.84 consensus estimate, while GAAP EPS came in at $2.67. Revenue hit $6.10 billion, surpassing expectations, and the company reaffirmed full-year guidance of $8.90 to $9.60 per share.

The quarter was boosted by strong performance in its zero-carbon nuclear fleet, favorable clean energy credits, and rising demand from corporate buyers. Notably, Constellation secured a 20-year power agreement with Meta Platforms (META), reinforcing its status as a top utility provider to large tech companies and AI-intensive infrastructure.

With the acquisition of Calpine on track and clean energy policy trends supportive, Constellation continues to deliver on both growth and earnings visibility.

Vistra: Profit Dips, But Stock Price Momentum Picks Up

Vistra’s adjusted EBITDA came in at $1.35 billion, slightly below last year’s $1.41 billion, while revenue rose about 10% year-over-year to $4.25 billion, though it came in light versus consensus. GAAP net income declined due to higher interest and operating costs, but the company reaffirmed full-year guidance and raised its 2026 EBITDA outlook above $6.8 billion.

A notable development this quarter was Vistra’s announcement that it executed a definitive agreement to acquire seven natural gas facilities totaling ~2,600 MW of capacity from Lotus Infrastructure Partners. This acquisition will further diversify Vistra’s natural gas fleet geographically and play a critical role in meeting the rising electricity demand from AI data centers and hyperscale infrastructure.

In addition to its nuclear footprint, Vistra’s growing natural gas portfolio positions it as a reliable, dispatchable power provider in a market that increasingly needs stability to support 24/7 AI workloads.

Despite the bottom-line dip, shares of Vistra are up nearly 4% on the day, as investors looked past near-term pressures and focused on its longer-term growth trajectory.

AI Power Demand Creates a Long Runway

Both Constellation and Vistra are at the forefront of one of the most powerful trends in energy markets: the rising electricity consumption tied to AI, cloud computing, and hyperscale data centers. As tech giants scale up infrastructure, demand for reliable, low-emission baseload power, especially from nuclear and clean generation, is surging.

CEG and VST offer investors exposure to this structural shift, combining stable utility cash flows with long-term growth upside. Both stocks remain in strong uptrends, backed by strong earnings growth forecasts and powerful technical momentum.

Should Investors Buy Shares in VST and CEG?

Constellation and Vistra delivered earnings that reinforce their leadership in the evolving energy economy. With expanding margins, long-term power agreements, and strong forward guidance, both stocks remain top plays on the AI-driven electrification wave, and with shares trading just below record highs, momentum continues to be on their side.

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This article originally published on Zacks Investment Research (zacks.com).

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