AI revolutionizes traditional industries: Spotlight on Constellation Energy and others

Artificial Intelligence (AI) has recently established itself as an indispensable tool across various industries, including less obvious sectors such as utilities, mining, and media. This development boosts both prominent and "under the radar" AI stocks, significantly improving their future prospects. The utility industry benefits greatly from AI, particularly through the optimization of efficiency and reliability in power generation and distribution. For instance, AI-driven predictive maintenance enables the early identification of potential failures by analyzing sensor data in infrastructure components such as power grids and pipelines. According to a McKinsey study, this can reduce maintenance costs by up to 40%, extend the lifespan of assets by 20%, and cut unplanned outages by 50%. In the mining sector, AI-driven autonomous vehicles and machines are revolutionizing traditional, labor-intensive methods. The use of autonomous transportation systems can reduce operating costs by up to 15% and increase productivity by 20%, according to a PwC report. Additionally, AI enhances mineral exploration and resource estimation, saving both time and costs while minimizing environmental impacts. The media industry is also experiencing an AI-driven transformation. Intelligent algorithms personalize content recommendations on streaming platforms, strengthening viewer engagement and increasing subscription rates. According to Netflix, their AI-supported recommendation system saves over $1 billion annually through reduced churn and increased viewing times. Furthermore, AI plays a crucial role in protecting intellectual property by searching the web for unauthorized content distribution and quickly removing it. Projections suggest that the global AI market in the media and entertainment sector could grow to $100 billion by 2030. A recently released fund report by Goldman Sachs highlights the "under the radar" AI stocks. Among these is Constellation Energy Corporation (NASDAQ:CEG), a company that produces and distributes electricity in the USA. The growing demand for electricity, driven by the construction of data centers, has brought energy companies into the spotlight. Morgan Stanley forecasts that rising electricity prices will significantly benefit companies like Constellation Energy. For the auction year 2026-27, Morgan Stanley expects a substantial increase in capacity prices to up to $695 per MW-day, far surpassing the previous record of $270. According to Morgan Stanley experts, this price development could lead to an approximate 20% increase in household electricity bills. The investment firm rates CEG stock as "Overweight" with a price target of $233. Although Constellation Energy ranks fifth among the "under the radar" AI stocks, investors might find other AI stocks that offer higher return potential within shorter timeframes. For investors seeking a promising and affordable AI stock, we recommend reading our report on the cheapest AI stock.