Why Constellation Energy Stock Was a Winner on Wednesday

By Eric Volkman – Mar 25, 2026 at 5:53PM ESTKey PointsFor him, it's unquestionably a buy.He believes it has upside potential approaching 30%.Constellation Energy (CEG +2.87%) provided a nice jolt to investors' portfolios in mid-week trading. On news that an influential investment bank resumed coverage of the stock with a bullish update on Wednesday, investors snapped up the shares, sending them up 3% that trading session. Going nuclear The person behind this was Morgan Stanley's David Arcaro, who flagged Constellation stock as an overweight (read: buy) at a $385 price target. That's 27% above its latest closing price. Image source: Getty Images. Constellation has been a high-visibility stock in recent months because it operates the largest nuclear fleet in the U.S. The Trump administration is eager to boost the nuclear segment, not least because it can help meet the relatively high energy demands of the infrastructure powering artificial intelligence (AI) technology. According to reports, Constellation's deep involvement with nuclear was a primary focus of Arcaro's new take. He believes that the company can draw numerous revenue streams as a leading provider of nuclear energy. Among other potential benefits, he cited interconnection with data centers as a particularly promising opportunity for the company. ExpandNASDAQ: CEGConstellation EnergyToday's Change(2.87%) $8.47Current Price$303.32Key Data PointsMarket Cap$107BDay's Range$300.33 - $309.1952wk Range$161.35 - $412.70Volume2.4MAvg Vol3.6MGross Margin17.35%Dividend Yield0.54% The fuel of the future? I would agree with that assessment, as I feel that nuclear will have to be in the mix if the U.S. wants to be a global powerhouse in AI infrastructure -- no matter what president is directing energy policy in the White House. We should bear in mind, though, that as a large energy conglomerate, Constellation has a range of energy-producing assets beyond nuclear, so this won't be the only factor affecting the stock.Read NextMar 25, 2026 •By Motley Fool StaffSurging Oil Prices Spark Market JittersMar 25, 2026 •By Eric VolkmanWhy SSR Mining Stock Shined Like Gold TodayMar 25, 2026 •By Matt DiLalloValero Has Been Forced to Shut Down a Texas Refinery After an Explosion. Here's What Investors Need to Know.Mar 25, 2026 •By Lee Samaha5 Ripple Effects From the Strait of Hormuz Blockade Affecting Energy StocksMar 25, 2026 •By Matt DiLalloIran's Attacks on Qatar's Energy Infrastructure Could Have Long-Term Impacts on the Energy Market. These 3 LNG Stocks Could Capitalize on the Opportunity.Mar 25, 2026 •By John BromelsThe Top 3 Nuclear Energy Stocks to Buy Right NowAbout the AuthorEric Volkman is a contributing Motley Fool finance and stock market analyst. Previously, Eric was an equities analyst at European investment bank Raiffeisen Capital and Investment. He’s also been a freelance finance writer since 1995. He studied at Susquehanna University.TMFVolkmanStocks MentionedMorgan StanleyNYSE: MS$165.62(-0.15%)-$0.25Constellation EnergyNASDAQ: CEG$303.35(+2.88%)+$8.50*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.