Rise of AI Stocks: Constellation Energy in Focus

The analysts have compiled a list of 35 trending AI stocks, highlighting the current position of Constellation Energy compared to other competitors. Amid the ongoing earnings season, investors are increasingly focusing on how investments in artificial intelligence are bearing fruit at S&P 500 companies. Forecasts suggest that profit growth is slowing, with an estimated increase in S&P 500 earnings of 5.3% compared to the previous year. Particularly, the technology and communication services sectors are expected to exhibit strong growth rates of 15.4% and 12.3% year-over-year, respectively. The robust performance of these sectors has propelled the S&P 500 to new highs, with an increase of about 21% this year. Howard Chan, CEO of Kurv Investment Management, notes that analysts are closely examining how large companies are monetizing their AI initiatives. Meta, for example, has seen a rise in its stock price due to forecasts of strong revenue growth, while Google's investments in AI technologies are being questioned regarding their integration into existing business models. The S&P 500 is currently trading at 22.3 times the future 12-month earnings estimates, above its long-term average. Investors are eager to see whether the upcoming quarterly results justify the high valuations. Constellation Energy, ranked 21st on our list, recently received a price increase from UBS, adjusting the target price to $307. The reason for this is a new contract with Microsoft, which secures the long-term power supply from the reopened Crane power plant. This development underscores the high demand for clean energy from major technology companies and confirms confidence in a solid market for energy.