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Why Constellation Energy (CEG) is poised to benefit from the rise of AI energy

Umito
Why Constellation Energy (CEG) is poised to benefit from the rise of AI energy

We recently compiled a list of 10 AI News Investors Should Not Miss. In this article, we’ll take a look at where Constellation Energy Corporation (NASDAQ:CEG) ranks in relation to other AI stocks.

UBS Private Wealth Management’s Angie Newman discussed how to take advantage of the current artificial intelligence boom on CNBC’s Squawk Box Asia. Addressing the macroeconomic environment, Newman explained that the correlation between stocks and bonds often increases during times of geopolitical uncertainty and fluctuating interest rates.

ALSO READ: 10 AI Stocks Taking Wall Street by Storm And Top 10 AI Stocks According to Latest News and Analyst Ratings

Although investors may think that balancing stocks and bonds will diversify their portfolio and generate consistent returns over time, this is not always the case. To solve this problem, Newman recommends incorporating other alternative asset classes like gold. Investors may particularly focus on sectors such as data centers, which are poised to benefit significantly from advances in AI.

She noted that AI’s impact extends beyond technology companies producing AI components, highlighting data centers and established value companies integrating the technology. Newman also stressed the importance of adopting an equal-weighted portfolio strategy and rebalancing regularly to capture opportunities among AI beneficiaries.

Looking ahead to 2025, the frenzy around artificial intelligence and its vast potential shows no signs of slowing down. Even business executives and researchers predict that autonomous “agents” and cost-effectiveness will likely dominate the artificial intelligence agenda next year. Speaking at the Reuters NEXT conference in New York, the executives explained how agents, or systems capable of performing actions without direct involvement, have long been an intangible goal for researchers. However, these capabilities could likely be enabled by step-by-step reasoning approaches such as those used in OpenAI’s o1 model.

“I think we’re going to see a lot of movement next year around agents, and I think people are going to be surprised at how quickly this technology comes to us. We believe this is just the beginning of what 2025 will be like: agents who will truly be there to help you with your daily tasks.”

Sarah Friar, OpenAI’s chief financial officer, predicts that artificial general intelligence, a theoretical AI system with capabilities rivaling those of a human, will be developed in the coming years. Analysts and venture capitalists are already very optimistic about 2025, saying it will be “a break-even year.” Additionally, companies have already moved beyond the experimentation stage by integrating AI technology into their operations. Businesses benefit from AI integration by streamlining operations, improving decision-making, and driving innovation for greater efficiency and profitability.