Here is Why Talen Energy (TLN) Gained This Week

The share price of Talen Energy Corporation (NASDAQ:TLN) surged by 4.46% between December 12 and December 19, 2025, putting it among the Energy Stocks that Gained 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) received increased investor attention after PJM Interconnection, the largest grid operator in the US, reported fresh record-high capacity prices on December 17, reflecting high demand from AI data centers. Talen managed to benefit significantly from the PJM Base Residual Auction for the 2027/2028 planning year, clearing a total of 8,745 MW at a clearing price of $333.44 per megawatt-day. As a result, the utility expects to land more than $1 billion in capacity revenues for the period.

Moreover, on December 16, Morgan Stanley raised its price target on Talen Energy Corporation (NASDAQ:TLN) from $441 to $443, while maintaining an ‘Overweight’ rating on the shares. The analyst noted that the utility sector’s performance will depend heavily on growth from data centers and better growth in 2026.

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.