Constellation's Meta Deal: Why This Nuclear Stock is a Must Buy Now
Constellation Energy (
CEG
) and Meta signed a 20-year nuclear power deal on June 3.
The power purchase agreement further solidifies the long-term growth relationship between nuclear energy and artificial intelligence, entrenching Constellation as one of the best long-term investments on Wall Street.
Despite the blockbuster nuclear energy deal to fuel Meta's AI data center push—Constellation's second 20-year deal with an AI hyperscaler—the stock gave up all its early morning gains from Tuesday and fell again Wednesday morning.
Constellation got rejected at its all-time highs after it grew overheated.
Patient long-term investors and traders now have a chance to buy the nuclear energy powerhouse 13% below its highs, or wait for a possibly larger pullback to some of its moving averages.
CEG Stock: Why The Nuclear Energy Giant is a Must Buy
The U.S. government and big tech—two of the most critical drivers of the economy—have gone all in on nuclear energy.
The U.S. government has launched various initiatives to support the revival of nuclear energy, aiming to triple capacity by 2050 to fuel economic growth and AI development and build greater energy independence. President Trump signed a nuclear energy executive order on May 23, designed to speed up nuclear power expansion and innovation.
Meanwhile, Meta, Microsoft, Amazon, and other mega-cap technology companies have all signed nuclear energy deals with established companies and upstarts aiming to roll out the next generation of nuclear energy technology over the next decade.
Big tech is helping drive the nuclear energy revolution because they are trying to use less fossil fuels while their AI expansion requires more energy than ever. Large data centers can consume nearly as much electricity as a midsize city, and generative AI platforms like ChatGPT use at least 10 times the energy of a typical Google search.
Constellation is the largest U.S. nuclear power plant operator, managing over 20 reactors across roughly a dozen sites in the Midwest, Mid-Atlantic, and Northeast. CEG strengthened its nuclear energy bull case by securing a 20-year power purchase agreement with Microsoft (
MSFT
) in September that will see it restart Three Mile Island Unit 1.
The biggest U.S. nuclear power company then cemented its position as a modern energy titan with its planned $26.6 billion deal to acquire natural gas and geothermal powerhouse Calpine at the start of 2025. CEG's acquisition creates the largest clean energy firm and expands its footprint into power-hungry, tech-heavy Texas and California.
Most recently, Constellation and Meta (
META
) signed a 20-year power purchase agreement for nuclear power in Illinois set to start in 2027.
'The agreement supports the relicensing and continued operations of Constellation's high-performing Clinton nuclear facility for another two decades after the state's ratepayer funded zero emission credit (ZEC) program expires. This deal will expand Clinton's clean energy output by 30 megawatts through plant uprates.'
The deal will also help Constellation pursue the possibility of building small modular nuclear reactors at the Illinois site.
CEG raised its dividend by 10% in 2025 after it boosted its payout by 25% in 2024. Constellation also projects 'visible, double-digit long-term base EPS growth backed by the Nuclear Production Tax Credit.'
The nuclear energy powerhouse is expected to grow its adjusted earnings by 9% in 2025 and 22% in 2026.
CEG's EPS estimates have climbed significantly over the last few years, with its FY26 estimates up solidly since its early May earnings release.
Buy Nuclear Energy Stock CEG on the Dip and Hold Forever?
Constellation stock has soared 355% in the last three years to crush the Energy sector's 8% decline and the S&P 500's 50% run.
The company's 470% surge since its early February 2022 IPO is more impressive, as Wall Street dove into the stock for dividend and earnings expansion and the long-term upside potential of nuclear energy.
Image Source: Zacks Investment Research
CEG has been on more of an up and down run over the past 12 months, yet it is still up 45%. The stock got rejected right at its all-time highs on Tuesday and trades roughly 13% below those levels.
Long-term investors might want to buy Constellation now and avoid the market timing game (and buy more if fades to its 50-day).
Traders, meanwhile, might wait for a possible slide to its early-January breakout levels (and its October highs) or other key moving averages.
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