AI Data Center Boom Boosts CEG Outlook; BMO Raises Target to $337

BMO Capital recently raised the price target on Constellation Energy Corporation (NASDAQ:CEG) to $337 from $291 and kept an Outperform rating on the shares. CEG generates and sells electricity in the United States. The rise of AI data centers has given new importance to utility firms that have been the best performers in the S&P 500 over the past few months.

In a research note, the analyst highlighted that the company reported an in-line Q1, and the most important takeaway for Constellation and the broader sector was management's discussion that they were nearing long-term agreements with customers to their available carbon-free supply.

In earnings for the first quarter, CEG posted earnings per share of $2.14. The revenue over the period was $6.69 billion, up more than 8% compared to the revenue over the same period last year. The firm also reaffirmed the full-year 2025 Adjusted (non-GAAP) Operating Earnings guidance range of $8.90 - $9.60 per share.

While we acknowledge the potential of CEG, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CEG and that has 100x upside potential, check out our report about this cheapest AI stock.

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