Utilities Get a Jolt From AI: Entergy, Constellation, NextEra

Benzinga argues the once “dull” utilities sector is benefiting from a structural jump in electricity needs tied to AI, data centers, and emerging compute such as quantum. Year-to-date, utilities have outpaced broad benchmarks, with specific operators leaning into large capex plans, nuclear generation, and hyperscaler contracts.

Why it matters: rising grid demand can lift earnings growth profiles that are typically rate-regulated and steady. Companies positioned with nuclear, renewables, or advantaged service territories may secure premium pricing and long-term offtake, while investors gain a potential defensive compounder with new growth tailwinds. Key risks include project execution, permitting, rate cases, and capital costs.

• Financial Markets
• Earnings
• Energy & Transportation
• Technology

"The incredible run-up in these stocks is 100% tied to AI… nuclear will be central, from large plants to SMRs." — Benzinga

Concept graphic of data centers linked to transmission lines and nuclear/renewable assets—signalizing AI’s pull on the grid.

Illustrative YTD performance sketch: utilities ETF outpacing a broad U.S. equity benchmark, reflecting sentiment shift.

Stock highlights: Entergy plans multi-year investment to expand and modernize infrastructure while courting data center load; Constellation leverages a large nuclear fleet and has inked higher-priced contracts; NextEra aligns renewables with hyperscaler needs and posted double-digit EPS growth. For investors, the trio offers different exposures to the same secular demand story.

• MSFT — Neutral (0.06), relevance 0.04
• SPGI — Neutral (0.00), relevance 0.04
• NGS — Somewhat-Bullish (0.23), relevance 0.04
• CEG — Neutral (0.14), relevance 0.08

Source: Benzinga · https://www.benzinga.com/trading-ideas/movers/25/11/48731552/3-utility-stocks-to-play-as-the-sector-powers-up