AI Can't Thrive Without This Stock (Hint: It's Not Nvidia)

Whether you use large language models like OpenAI's ChatGPT or you're familiar with artificial intelligence (AI) tools like Siri from Apple and Copilot from Microsoft -- or you lean on AI found in various apps and platforms to complete everyday tasks, you're likely well aware of how dominant AI has become in our daily lives.

Most investors familiar with the burgeoning field of AI will point to semiconductor companies as pivotal to the industry's growth.

But investors who only recognize semiconductor stocks as AI investment opportunities are missing out. In fact, there's another stock that's critical for AI growth.

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Semiconductor stalwarts often steal the spotlight

It goes without saying that semiconductor specialist Nvidia attracts the attention of AI investors. The company's consistent innovation and development of chips -- specifically, graphics processing units (GPUs) -- used in data centers has played a vital role in the industry's accelerating growth.

Nvidia's not alone. Other semiconductor companies, such as Micron Technology, which designs memory and storage solutions, are also benefiting from the growth of the AI industry. The company's high-bandwidth memory products, for example, support faster inference and scaling of agentic AI workflows.

While these two companies receive the majority of attention, numerous companies are nipping at their heels. Investors may recognize some of these competitors, but one company is playing an equally -- if not more -- important role in the AI industry's growth, and it represents a different industry altogether.

AI is aiming for the stars with this energy company

Data center operators may use extraordinarily advanced GPUs to provide the computing infrastructure for AI applications, but it means little if there's inadequate power to keep the chips humming. That's where Constellation Energy (NASDAQ: CEG) come in.

AI computing demands significant amounts of power. To meet this demand, many data center operators are turning to nuclear energy companies, from advanced nuclear reactor companies to established nuclear energy leaders like Constellation Energy.

In 2024, Constellation Energy announced it plans to restart operations at Three Mile Island after signing a 20-year power purchase agreement with Microsoft, which will purchase energy from the nuclear plant to support its data centers in the region.

Building on its partnership with Microsoft, Constellation signed a 20-year power purchase agreement with Meta Platforms in June 2025 for nuclear power generated at the Clinton Clean Energy Center in Illinois. Operations at the nuclear facility are expected to resume in 2027, at which point Meta will use the power to support its AI data centers.

More recently, Constellation announced that its recently acquired unit, Calpine, signed a 380-megawatt (MW) agreement with CyrusOne, a leading global data center developer and operator, to connect and serve a new data center adjacent to the Freestone Energy Center, a natural gas power plant located in Texas. This complements a 400-MW power purchase agreement the two companies inked last year for a new data center CyrusOne is developing in Bosque County, Texas.

Constellation is benefiting now from AI power demand

Advanced nuclear reactor companies have gained interest among AI companies, but they require regulatory approval before they can commence operations. Constellation, conversely, doesn't have to wait. Its nuclear assets are ready to provide much-needed power to data center operators right now, making Constellation stock an alluring option for AI-focused investors.

Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Constellation Energy, Meta Platforms, Micron Technology, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.