New York, Jan 21, 2026, 12:37 PM EST — Regular session
- Constellation Energy shares dipped again in midday trading, following a 4% drop yesterday.
- A Wall Street price-target cut added to the stock’s struggles.
- The main wildcards are data-center power demand and grid policy.
Constellation Energy Corporation (CEG) saw its shares slip roughly 0.5% to $293.97 in midday trading Wednesday. The stock had closed Tuesday with a 4% drop, settling at $295.40. 1
The pullback is significant since Constellation now serves as a key indicator for whether the AI-driven data-center boom will lead to long-term power contracts and stable pricing for generators. This month, the company finalized its acquisition of Calpine, framing the merger as a move to “power the data centers” linked to the emerging AI era. 2
Policy factors into the equation as well. PJM Interconnection, operator of the largest U.S. grid, announced plans to make new large power users either supply their own generation or face early curtailment. Interim president David Mills described it as “not a yes/no to data centers.” 3
Wells Fargo’s Shahriar Pourreza lowered his price target on Constellation to $460 from $478 but maintained an Overweight rating. He still calls it his “Best IPP Idea,” citing “multiple DC deals in flight.” (A price target reflects where an analyst expects a stock to trade; an Overweight rating suggests it will outperform peers.) 4
The data-center trend is now spilling over beyond just utilities. On Tuesday, OpenAI rolled out its “Stargate Community” initiative, designed to “pay its way on energy.” The company said its site plans might include everything from financing dedicated power and storage to backing new generation and transmission projects. 5
Big tech is leaning into gas-backed power paired with carbon capture. Google inked a deal to purchase electricity from a 400-megawatt natural gas plant planned in Illinois, which aims to capture about 90% of its emissions. Michael Terrell, Google’s head of advanced energy, described natural gas with carbon capture as “a critical source of clean firm power.” 6
Constellation, based in Baltimore, produces emissions-free energy and supplies power to both homes and businesses. Its generation mix includes nuclear, hydro, wind, and solar assets, among others, according to Reuters data. 7
U.S. stocks bounced back Wednesday following Tuesday’s sharp selloff. Smaller players in the nuclear sector, including NuScale Power and Oklo, gained ground after President Donald Trump threw his support behind nuclear energy procurement. Constellation, one of the largest U.S. nuclear generators, didn’t follow suit and lagged behind. 8
The setup remains fragile. Efforts to shield consumers from soaring power bills might limit gains for wholesale generators. Meanwhile, Constellation is still working through the integration of Calpine’s fleet and commercial operations.
Traders are focused on how PJM’s proposals fare with federal regulators and whether Washington steps up with new grid-reliability rules that could change who foots the bill for added capacity. For Constellation, new data-center contract wins may carry as much weight as shifts in power prices.
Constellation hasn’t officially announced its next earnings date, but MarketBeat projects the results will drop before the market opens on Feb. 17. Investors are watching closely for updated guidance and news on the company’s contracting pipeline. 9
