Constellation Energy Corporation
Shares of Constellation (CEG) finished the week on top of the S&P 500 performance leader board after a 20%-plus rally on Friday.
Shares ripped higher after signing a 20-year power purchase agreement with Microsoft (MSFT) as tech giant plans for AI expansion.
The agreement with Microsoft – the largest in CEG’s history – will require Constellation to invest $1.6 billion into one of the reactors located at Three Mile Island in Pennsylvania. That investment is required to make sure the facility is operational again after being taken offline in 2019 due to economic reasons.
The agreement still needs to pass regulatory hurdles with the U.S. Nuclear Regulatory Commission as well as state and local permitting agencies following a safety and environmental review.
This collaboration speaks loudly of the need for companies to begin locking in plans to support expansion of energy supply as AI continues a parabolic increase in energy demand.
Constellation Energy stock shot through the $250 price mark today, marking new all-time highs for the largest nuclear power producer in the United States.
The move follows an increase in volume over the last week after the company shifted above its 50-day moving average last week.
Investors may expect a slight pullback in CEG shares over the next few weeks as today’s volume represents a “crescendo moment”, pushing the stock well above overbought technical territory.
That said, any pullback will be met with long-term buying interest as Constellation Energy has fortified itself as a long-term solution to growing AI energy demand.
Shares of Constellation Energy are in a long-term bullish trend with a target of $350.
CrowdStrike Holdings, Inc.
CrowdStrike Holdings (CRWD) made a strong technically driven move today as the stock rallied more than 7%.
Just two days ago, the stock broke above the critical 50-day moving average on an increase in volume. Those moves are typically driven by algorithm trading and analyst’s attention to the possibility of an emerging stock.
The stock’s 50-day moving average has been in a bearish trend since shares fell from $400 following an off earnings report and the malfunction of the security software’s systems in July.
That malfunction cost Delta Airlines (DAL) and other customers hundreds of millions of dollars in damage, an issue which the company is still facing.
Having cleared one technical trendline, CrowdStrike shares now face pressure from another test.
The stock’s 200-day moving average is perched just 1.5% above today’s closing price. That well-watched trendline is in a long-term bullish trend, suggesting that a break above it – and the psychologically significant $300 price – would target the stock’s next move to $350 in short order.
CrowdStrike’s earnings in late-August beat analyst expectations and rallied support from Wall Street analysts. The company’s management lowered expectations from both revenue and earnings per share for the upcoming report in late-November.
The company’s estimates still reflect strong double-digit revenue growth because of increase demand for their software security measures.
Shares of CrowdStrike remain in a long-term bull market trend with a target price of $400.
Intel Corp
Intel (INTC) shares were buzzing on Friday as The Wall Street Journal reported that Qualcomm had approached Intel about a takeover in recent days.
The stock was up 6% in late afternoon trading following the report.
Year-to-date, Intel stock is trading -58% as the former semiconductor giant has struggled to reinvent itself in the AI chip era.
Intel reported losses of $1.6 billion for the second quarter, compared with profits of roughly $1.5 billion a year ago. Intel’s management forecast revenue of $13 billion for the third quarter, missing analyst forecasts, pushing the stock below $20.
That move below $20 was approaching the tangible value of Intel – estimated between $15 and $17 per share. That move turned expectations of a turnaround into speculation that the company could become an acquisition target.
Today’s rally also follows news on Monday that the company had received another injection of capital from the CHIPs act as they move towards increasing domestic production of semiconductor chips.
Intel shares will face technical selling pressure soon as they approach the $24 price. This is where the stock’s bearish 50-day moving average currently resides.
A break above that trendline would be the first since optimistic trading ahead of July’s earnings report.
Intel shares remain in a bear market trend, however the stock must still be considered for higher prices given today’s acquisition rumors.
