Forget AI Stocks: This Utility Could Deliver Better Returns in 2026

Artificial intelligence (AI) stocks have surged over the past couple of years, and the growing AI build-out has some investors wary about the massive capital expenditures hyperscalers are planning. For investors seeking exposure to AI's growth outside of major technology companies, utility providers like Constellation Energy (NASDAQ: CEG) offer upside potential that will benefit from this build-out. Here's how.Hyperscalers are spending big bucks to expand their data center footprints. These data centers, designed specifically for artificial intelligence, consume significantly more energy than traditional data centers. These data centers use graphics processing units, which generate a massive amount of heat -- and require cooling -- and consume more electricity than the central processing units of previous data centers.Constellation Energy is the largest producer of carbon-free electricity, the kind of energy hyperscalers want most. The company has capitalized on robust energy demand and secured 20-year power purchase agreements (PPAs) with Microsoft and Meta Platforms, the parent company of Facebook. What makes Constellation a popular choice for hyperscalers is its huge nuclear footprint and the ability of nuclear to provide both reliable and sustainable energy.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool