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AI power trade lifts NRG and Constellation as S&P 500 slips
NRG gained 6.4% and Constellation rose 4.9% on Sept. 4, with NRG citing 1.2 gigawatts of planned contracted generation in Texas and Constellation raising full-year EPS guidance to $11.5 to $12.5.
Yahoo Finance reported that NRG Energy shares rose 6.4% and Constellation Energy climbed 4.9% on September 4, even as the S&P 500 fell 0.4%. The move tracked an AI power trade tied to growing data-center demand for reliable generation capacity amid grid constraints and project contracting timelines.
According to Yahoo Finance, NRG is pursuing a Bring Your Own Power approach linked to a 1.2-gigawatt combined-cycle gas project in Texas with a hyperscaler. The company also said it brought a 415-megawatt facility into commercial operation, and it reported $1.03 billion of second-quarter free cash flow before growth investments.
Yahoo Finance added that the upside case for both companies centers on pairing contracted data-center load with dispatchable power to work around interconnection bottlenecks. The downside case includes execution and timing risks, including project delays, fuel and financing exposure, and the possibility that forecast load does not materialize.
For Constellation, Yahoo Finance said the company combines a nuclear fleet with gas assets acquired with Calpine and raised full-year adjusted operating EPS guidance to $11.50 to $12.50. It also reported signing another 920 megawatts of long-term power agreements, while noting risks such as outages, regulatory intervention, and integration challenges.
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