Talen Energy (TLN) Falls Following a Decline in Utilities

The share price of Talen Energy Corporation (NASDAQ:TLN) fell by 6.87% between November 26 and December 3, 2025, putting it among the Energy Stocks that Lost the Most This Week.

Talen Energy Corporation (NASDAQ:TLN) is a leading independent power producer and energy infrastructure company with 10.7 GW of generation assets.

Talen Energy Corporation (NASDAQ:TLN) gained over 7% in the last week of November after the company announced that it had completed the acquisitions of two power stations in Ohio in a deal valued at around $3.5 billion, after adjusting for estimated tax benefits. The acquisitions added nearly 2.9 GW of baseload generation to Talen’s portfolio, offering additional reliable capacity to hyperscale data centers and large commercial offtakers. So the recent dip in share price could be due to profit-taking by investors.

Moreover, there has been a decline in the overall utilities sector over the last week, possibly due to investors flocking to higher-risk sectors, betting that weak jobs data would prompt the Federal Reserve to cut interest rates. In addition, the recent earnings season has also sparked investor concerns that the mega data-center deals that had driven the utility sector’s explosive growth over the last year may be much slower than originally expected.

While we acknowledge the potential of TLN 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.

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Disclosure: None.