Vistra, Constellation Energy Stocks Rise Further on AI Energy Needs

Key Takeaways

Shares of nuclear power providers Constellation Energy (

CEG

) and Vistra (

VST

) added to their gains of yesterday on optimism of growing demand for electricity by
artificial intelligence (AI)
data centers.

Constellation Energy shares soared 8.4% Thursday when the company
announced
it had struck a pair of deals worth more than $1 billion with the federal government’s General Services Administration. One of those involves supplying more than a dozen departments in five states with nuclear energy.

Today, Constellation reported that the Treasury Department has reversed an earlier ruling and will now allow existing nuclear plants to be able to qualify for federal tax credits under the
Inflation Reduction Act of 2022
. Shares rose 3.5% in recent trading.

The company made headlines in September when it
reported
that it would restart a unit of Pennsylvania’s Three Mile Island to produce energy for Microsoft’s (

MSFT

) data centers. That sent shares soaring; they hit an all-time high in early October and remain up about 115% in the past year.

Vistra also has benefited from the Constellation news, with shares
soaring 8.6% yesterday
and a further 7% today, leading
S&P 500
gainers both days. Shares reached a record high in November and have added more than 300% in the past year.

Read the original article on
Investopedia