CEG Surges 2.27% on Regulatory Approval, Hits 5.72% Two-Day High

Constellation Energy (CEG) surged 2.27% on Monday, extending its two-day winning streak with a total gain of 5.72%. The stock reached its highest level since October 2025, with an intraday high reflecting a 3.74% rally, signaling renewed investor confidence in the carbon-free energy producer.

The rally follows regulatory milestones that de-risk the company’s $16.4 billion acquisition of Calpine Corporation, which received approvals from the Federal Energy Regulatory Commission and the New York State Public Service Commission in July. The deal, expected to close in Q4 2025, adds Texas-based peaking power assets and strengthens CEG’s market position, particularly as demand for energy-intensive AI infrastructure grows.

Strategic partnerships have also bolstered momentum. A 20-year power purchase agreement with Meta Platforms and a 190-megawatt supply deal for a CyrusOne data center in Texas highlight CEG’s alignment with the AI-driven energy transition. These contracts secure long-term revenue streams, reducing exposure to volatile wholesale markets and attracting institutional investors seeking stable returns.

Recent financial results further support optimism. CEG’s Q2 2025 earnings exceeded expectations, driven by robust demand in key markets and the integration of Calpine’s assets. Analysts raised price targets, with Argus increasing its estimate to $375 from $350, while KeyBanc and Melius maintained Overweight or Buy ratings, citing the company’s growth trajectory and operational scale.

CEG’s innovation in AI-powered grid solutions has also distinguished it from peers. A partnership with GridBeyond to launch a demand response program in the PJM region leverages AI for load optimization, enhancing grid reliability and customer savings. This technological edge positions CEG to capitalize on rising energy consumption from data centers and other high-demand sectors.

Broader industry trends favor CEG’s nuclear-focused strategy. As the U.S. seeks carbon-free baseload power to support decarbonization and AI infrastructure, CEG’s nuclear fleet and acquisition-driven scale place it at the forefront of the energy transition. Analysts note the stock’s potential undervaluation, with intrinsic value estimates suggesting a 60% upside, reinforcing its appeal for growth-oriented and ESG-focused investors.