3 No-Brainer Energy Stocks to Buy With $500 Right Now

Key Points

• Nuclear power supplier Constellation Energy is growing into lucrative markets.

• NRG Energy has been one of the S&P 500's darling stocks so far in 2025.

• Vistra boasts the second-largest energy storage capacity in the U.S.

• 10 stocks we like better than NRG Energy ›

Artificial intelligence (AI) may be the brains (or compute, rather) behind the next industrial revolution, but it's nothing without power. Literally. Here's a fun fact: Training OpenAI's GPT-4 required about 30 megawatts of power, enough to power 15,000 to 30,000 households for one hour.

As companies race to build data centers across the country, then, one question looms large: Who's going to keep the lights on? That's where energy stocks come in. Not the fossil-fueled giants of decades past, but a new group of companies powering the AI infrastructure.

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If you've got $500 to invest and a long-term perspective, here are three no-brainer energy stocks worth considering right now.

Image source: Getty Images.

1. Constellation Energy

When it comes to carbon-free electricity, no U.S. energy company can top Constellation Energy (NASDAQ: CEG). As the largest producer of clean power, Constellation operates over 20 nuclear plants and is responsible for about 10% of the nation's emissions-free energy.

These nuclear plants are more than bragging rights. Reliable nuclear power is exactly what AI data centers crave: 24/7 output, negligible carbon footprint, and the scale to serve hyperscalers.

Beyond its nuclear power, Constellation is making a bold move to scale even further. It's acquiring Calpine in a $26.6 billion deal that will add a sprawling portfolio of natural gas and geothermal plants, exactly the kind of flexible generation needed to serve high-growth markets like Texas and California. Add to this a 20-year power purchase agreement with Microsoft, and you have yet another tailwind pushing Constellation deeper into the AI infrastructure supply chain.

Financially, Constellation is sturdy. The company generated $24.2 billion in trailing-12-month revenue and $2.98 billion in net income, giving it a higher profit margin (12.3%) than most of its peers. The stock trades at 34 times earnings -- higher than the other two companies below -- but that premium could reflect its nuclear footprint, which will likely become more valuable as data center operators push for carbon-free power guarantees.

2. NRG Energy

NRG Energy (NYSE: NRG) has been one of the S&P 500's top performing stocks in 2025 -- and for good reason. The company has posted strong revenue growth, expanded margins, and consistent profitability at a time when electricity usage is surging.

Not only has NRG Energy grown both its top and bottom lines (as the chart below shows), but it also doubled its hard asset base in the spring with the acquisition of several strategically located generation assets. The $12 billion deal puts NRG in a strong position to capture the wave of energy demand coming from AI data centers.

This is probably why management is predicting a 14% compound annual earnings-per-share (EPS) growth rate over the next five years.

NRG data by YCharts

One risk? Debt. Its debt-to-equity ratio hovers near 396%, high even by utility standards (Constellation Energy's is 63%, for comparison). But with $693 million in cash and consistent cash flow, NRG has levers to manage it. The stock trades around 20 times forward earnings, which is slightly above the utility sector average of 18 but potentially justifiable given the runway ahead.

3. Vistra

Vistra (NYSE: VST) may not get as much press as the previous two companies. But its business is just as strong. The company operates one of the largest competitive power portfolios in the U.S. -- enough to power 20 million homes, according to its website -- with plants spread across multiple states.

Like Constellation, Vistra owns nuclear facilities, just on a smaller scale: four units in total, up from just one before its Energy Harbor acquisition last March. Still, four nuclear facilities furnishes it with the second-largest energy storage capacity in the country. This is perfect for AI data centers, which require stable, 24/7 power, especially important when high demand causes major strains on the grid.

Valuation-wise, the stock trades around 31 times trailing earnings, which isn't exactly cheap but not unheard of in today's AI-adjacent energy landscape, as the chart below illustrates. That said, for an energy company with AI exposure and expansion momentum, that valuation could be more attractive than it seems at first glance.

VST PE Ratio data by YCharts

Of course, like the previous companies, this one has risks, too. Nuclear and gas exposure both come with regularity risks, and the company carries a hefty $17.7 billion in debt. But for investors seeking a profitable energy company with strategic locations, Vistra checks a lot of boxes.

Invest where the load is going

Not every AI investment has to live in Silicon Valley. AI will need electricity -- a whole lot of it -- which creates tailwinds for companies positioned to deliver it. These three companies are already there. With just $500, you could plant a stake in the next energy boom.

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Steven Porrello has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Constellation Energy and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.