Why Vistra and Constellation Energy Stocks Are Surging Amid AI Power Demands

Bill McColl brings over 25 years of expertise as a senior producer and writer across TV, radio, and digital platforms, leading teams to deliver impactful news coverage on major global events.

Essential Insights

• The surge in electricity demand from artificial intelligence data centers is significantly boosting shares of nuclear power leaders Constellation Energy and Vistra.
• Both companies achieved record-breaking stock prices in late 2024, reflecting strong market confidence.
• Constellation Energy is set to reactivate a unit at Pennsylvania’s Three Mile Island plant, partnering with Microsoft to supply clean power to its data centers.

Shares of nuclear energy providers Constellation Energy (CEG) and Vistra (VST) have continued their upward momentum, driven by the expanding electricity requirements of AI-driven data centers.

Constellation Energy's stock surged 8.4% following announcements of over $1 billion in contracts with the federal General Services Administration, including supplying nuclear energy to multiple departments across five states.

Additionally, the U.S. Treasury Department reversed a prior decision, now allowing existing nuclear plants to qualify for federal tax credits under the Inflation Reduction Act of 2022, pushing Constellation shares up by 3.5%.

In a notable development last September, Constellation revealed plans to restart a unit at the Three Mile Island nuclear facility to power Microsoft’s data centers, a move that propelled its shares to an all-time high by October and a remarkable 115% increase over the past year.

Vistra has also capitalized on this trend, with its shares climbing 8.6% and 7% over two consecutive days, topping the S&P 500 gainers list. The stock hit a new high in November, boasting a 300% gain within the last year.

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