Rational Equity Armor Fund portfolio manager Joe Tigay sees Constellation Energy (CEG) shares gaining on the back of Nvidia (NVDA) earnings on Wednesday.
The chipmaker is expected to record $0.80 a share of earnings for its Q1 after the bell, up significantly from $0.58 per share in the same quarter last year.
Ahead of Nvidia’s earnings release, CEG stock is up a whopping 92% versus its year-to-date low.
Why Nvidia Earnings Matter for Constellation Energy Stock
Joe Tigay expects Nvidia to signal continued demand for artificial intelligence as it reports its fiscal first-quarter financials later today.
Investors may take that signal to mean energy demand will increase in the back half of 2025. Why? Because AI data centers are notorious for consuming unusually large amounts of power – and that’s where CEG steps in.
It’s a Baltimore-headquartered firm that’s committed to “restoring some nuclear power plants,” the portfolio manager told Yahoo Finance in an interview on Wednesday.
Investors should note that titans, including Google (GOOGL) and Amazon (AMZN), have increasingly been hopping onboard with the idea of using nuclear energy to power their super demanding AI infrastructure.
Constellation Energy stock currently pays a dividend yield of 0.5%, which makes it significantly more exciting to own in 2025.
Guggenheim Sees Significant Further Upside in CEG Shares
Guggenheim analyst Shahriar Pourreza is bullish on the nuclear energy stock for the potential role it may eventually play in powering the AI data centers as well.
Pourreza is particularly constructive on CEG’s recent acquisition of Calpine (CPN), which aims at growing its presence in nuclear energy and positioning the Nasdaq-listed firm as a comprehensive energy solutions provider for hyperscalers.
His “Buy” rating on Constellation Energy shares comes with a price target of $378, which translates to potential upside of more than 20% from current levels.
What’s the Consensus Rating on Constellation Energy in 2025?
Investors should note, however, that other Wall Street analysts are nowhere near as bullish on CEG shares as Shahriar Pourreza.
While the consensus rating on Constellation Energy stock currently sits at “Strong Buy,” the mean target of about $303 signals potential downside of nearly 3% from here.
