Shares of Constellation Energy (CEG) surged 25% today after the company announced plans to acquire Calpine.
One of the top American power generation companies, Calpine Corporation specializes in producing energy using geothermal and natural gas.The company offers dependable, low-carbon energy solutions through its power facilities located throughout the United States.
Calpine prioritizes sustainability by utilizing cutting-edge technologies and renewable resources to effectively satisfy energy demands and aid in the shift to cleaner power.
Up until 2018, Calpine Corporation was traded on the New York Stock Exchange with the ticker “CPN”.The business became privately held after being purchased by an affiliate of Energy Capital Partners and additional investors.
Calpine’s acquisition by Constellation Energy increases the company’s production of renewable energy and aligns with its strategy to supply data centers with electricity through private contracts with businesses such as Microsoft (MSFT) and Amazon (AMZN).
On September 20, 2024, Constellation electricity and Microsoft announced a 20-year power purchase deal to provide carbon-free electricity for Microsoft’s data centers.
Restarting the Unit 1 reactor at the Three Mile Island nuclear plant in Pennsylvania is part of the agreement.
Constellation’s stock surged from $200 to $285 as a result of the agreement with Microsoft. Shares have since dropped to the $240 price level. AI Nuclear Discovery Stocks, such as Nano Nuclear (NNE) and NuScale Energy (SMR), had attracted the attention of investors more.
After breaking above $300, today’s news puts CEG shares back on track. Returning to its peak attracts investments, setting the stage for the AI nuclear sector to grow quickly.
Constellation Energy’s stock is now trading with a $400 price objective and a long-term favorable outlook.
