Nvidia (NASDAQ: NVDA) reported strong earnings on Feb. 26, yet the stock dropped over 9% from its pre-earnings level by Feb. 27. While the shares have been recovering slightly, they are still trading below their pre-earnings price.
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Investors are now focusing less on near-term results and more on the sustainability of artificial intelligence (AI) capital expenditures (capex). They are also concerned about the rising competitive pressures. As hyperscalers and enterprises increasingly shift from AI training to inference (real-time deployment of AI models in production environments), some believe this could create more room for competing chipmakers.
In this environment, investors may want to look beyond semiconductor and AI stocks and opt for energy stocks. Constellation Energy (NASDAQ: CEG) and GE Vernova (NYSE: GEV) are two such growth stocks well-positioned to benefit from the expected long-term rise in U.S. electricity demand. Both are also relatively insulated from Middle East-related oil supply disruptions, as these businesses operate mainly in the U.S. power markets.
Constellation Energy has become one of the largest electricity producers in the U.S. after completing its acquisition of Calpine in January 2026. The acquisition combined Constellation Energy’s zero-emission nuclear generation with Calpine’s natural gas and geothermal assets. Constellation Energy now operates 55 gigawatts of generation capacity and serves nearly 2.5 million retail and business customers. The deal has also expanded the company’s footprint in fast-growing power markets like Texas and California.
The most significant catalyst for Constellation Energy is the surging electricity demand, mainly from data centers. The company has already signed a 20-year purchase agreement with Meta Platforms for nearly 1,121 megawatts of nuclear energy from its Clinton Clean Energy Center, with deliveries expected to begin June 2027. This agreement supports relicensing and continued operations at the Clinton nuclear facility for another two decades after the expiration of the state Zero Emission Credit subsidy program.
The company has also contracted with Microsoft under a 20-year agreement to support the restart of Three Mile Island Unit 1, also known as Crane Clean Energy Center. Expected to come online in 2028, this project will add over 800 megawatts of carbon-free electricity to the power grid. Together, these agreements provide exceptional long-term revenue visibility powered by data center demand.
