The AI Power Bottleneck Makes Constellation Energy A Strong Buy

I am rating Constellation Energy a Strong Buy because I believe the market is underestimating how valuable reliable power has become in the AI era. The major growth drivers include the Calpine acquisition, the META nuclear agreement, and the Crane restart project with MSFT support. Together these drivers represent nearly $2Bn of potential annual revenue. My Price target is $424 and is based on an estimated $14.20, 2028 EPS and using a 30x FWD earnings multiple.