CEG Stock Spikes as Trump Administration Approves $1B Nuclear Revitalization Loan

Constellation Energy Corporation (CEG) shares surged in premarket trading on Wednesday, November 19, 2025, following the Trump administration’s announcement of a $1 billion loan to restart the Three Mile Island nuclear reactor in Pennsylvania. The stock jumped to $351.29 in premarket trading at 5:38 AM EST, representing an 11.94-point gain or 3.52% increase from the previous close of $339.35.

This federal backing represents a significant milestone for the nation’s largest nuclear operator and signals strong governmental support for nuclear energy expansion as demand for reliable, carbon-free power intensifies driven by artificial intelligence and data center growth.

Federal Loan Fuels Restart of Three Mile Island Reactor

The Department of Energy announced Tuesday that it would provide Constellation Energy with a $1 billion loan to restart the Crane Clean Energy Center, formerly known as Three Mile Island Unit 1. The loan, administered through the Energy Department’s Loan Programs Office, will cover the majority of the project’s estimated $1.6 billion total cost.

Greg Beard, senior advisor to the LPO, indicated the first advance to Constellation is expected in the first quarter of 2026, with the loan structured to include a guarantee from Constellation to protect taxpayer money.

The 835-megawatt reactor ceased operations in 2019 as nuclear plants struggled to compete against cheap natural gas. Constellation unveiled plans in September 2024 to restart the reactor through a power purchase agreement with Microsoft to support the tech company’s data center electricity demands in the region. The plant is expected to begin generating power again in 2027, pending Nuclear Regulatory Commission approval and water-related permitting.

Energy Secretary Chris Wright emphasized that the loan office would dedicate most of its more than $250 billion in capital to support nuclear reactor development, with President Trump signing four executive orders in May aimed at significantly expanding new nuclear capacity.

The loan comes as consumers in many PJM Interconnection states face significant electricity price increases due to rapid demand growth from artificial intelligence data centers outstripping available supply. The PJM regional grid serves more than 65 million people across 13 states.

According to Beard, the loan will help lower Constellation’s cost of capital and ultimately make power cheaper for PJM ratepayers, demonstrating the administration’s commitment to supporting affordable, reliable, and secure energy infrastructure.

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CEG Outperforms Broader Market With Strong Multi-Year Gains

Constellation Energy stock has demonstrated exceptional performance over multiple timeframes, with year-to-date returns of 52.54% compared to the S&P 500’s 12.51% gain. The company’s one-year return stands at 48.19%, while its three-year and five-year returns have reached 272.78% and 793.03% respectively, significantly outperforming the broader market.

As of the November 18 close, CEG traded at $339.35 with a market capitalization of $106.015 billion and a trailing P/E ratio of 38.92. The stock’s 52-week range has been $161.35 to $412.70, indicating substantial volatility and growth over the past year.

Analysts remain optimistic about Constellation’s prospects, with an average price target of $403.77, representing potential upside from current levels. The latest analyst rating from Citigroup on November 10, 2025, maintained a neutral stance while raising the price target from $337 to $368. The company’s strong financial metrics include a profit margin of 11.03%, return on equity of 19.84%, and trailing twelve-month revenue of $24.84 billion. With approximately 31,676 megawatts of generating capacity consisting of nuclear, wind, solar, natural gas, and hydroelectric assets, Constellation is positioned as the nation’s top carbon-free power producer.

The federal loan announcement validates Constellation’s strategic positioning in the growing nuclear renaissance, particularly as technology companies seek reliable baseload power for energy-intensive AI operations. The Crane Clean Energy Center represents one of three shuttered U.S. nuclear plants aiming to restart operations this decade, alongside the Palisades plant in Michigan (backed by a $1.5 billion federal loan to Holtec International) and NextEra Energy’s Duane Arnold plant in Iowa (partnering with Google).

Analysts highlight that Constellation’s nuclear fleet provides irreplaceable baseload capacity, acquisition synergies, and benefits from policy tailwinds, positioning the company for potential annual returns exceeding 20% over the medium to long term.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.