AI-Powered Energy Stocks: GEV & CEG Set for Growth Surge

Investment Insights: As AI energy consumption spikes, GE Vernova (GEV) and Constellation Energy (CEG) emerge as top prospects, each leveraging strong growth forecasts. Wall Street anticipates significant earnings increases bolstered by strategic partnerships.

Date: 05-04-2025

AI Rating: 7

Energy Sector Growth Amid AI Boom
The report identifies GE Vernova (GEV) and Constellation Energy (CEG) as promising investment opportunities due to their potential to thrive within the expanding artificial intelligence (AI) sector, which demands vast energy resources. GEV is projected to achieve an impressive adjusted earnings increase of 15% in 2025 and 73% in 2026, highlighting a robust recovery from an adjusted loss of -$1.60 in FY23.

Revenue Growth Insights
GEV is expected to experience revenue growth of 5% in 2025 and 9% in 2026, signaling a strong operational momentum as it focuses on technology to support the transition to clean energy. In the case of Constellation Energy, the earnings outlook has been regarded positively with projected growth rates of 8% in 2025 and a notable 18% in 2026.

Investor Sentiment and Shareholder Returns
Both stocks have shown considerable appreciation since their respective initial public offerings, with GEV soaring 135% since April 2024 and CEG up 270% over the last three years. Constellation is notable for its dividend increases, expecting a further 10% rise in 2025, which reflects confidence in sustaining profitable operations. These factors collectively indicate that investors might view these companies favorably amidst rising demand for energy driven by AI.

Market Position and Potential Risks
While both companies exhibit promising growth, recent market corrections may require careful monitoring. GEV's stock dropped by 28% from its January highs, which necessitates an assessment of price recovery patterns and market volatility. Investors should also consider that despite strong structural growth indicators, fluctuations in energy prices and regulatory changes can influence returns.

Stocks: GEV CEG MSFT