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{\"0\":\"Talen is a straightforward investment in nuclear energy and AI growth.\",\"1\":\"TLN is expanding its relationship with AI hyperscaler Amazon.\",\"2\":\"Its earnings outlook is soaring, and TLN stock trades 10% below its highs. \"}
Talen Energy Corporation (TLN - Free Report) is a leading independent power producer that’s a direct long-term investment in the growing relationship between artificial intelligence and nuclear energy.
Wall Street has jumped into Talen, which already has a nuclear power deal with AI hyperscaler Amazon, and other nuclear energy stocks because TLN and its peers are part of a small group of companies ready to power the energy-hungry AI boom.
U.S. electricity supply will have to expand more than 5x faster than the prior two decades to meet demand, according to AI industry projections.
Alongside nuclear energy, the rapid build-out of AI data centers is also fueling surging natural gas demand. Talen made a blockbuster natural gas deal in the middle of July that will increase its annual generation by 50%.
This backdrop is why TLN stock soared 160% in the past year, crushing Nvidia and the Nasdaq.
Talen's recent pullback sets up a better buying opportunity for one of the leading players in nuclear energy that's prepared to fuel the AI age.
Buy Nuclear as Part of Your AI Stock Portfolio
The U.S. government aims to quadruple nuclear energy capacity by 2050. It is spurring nuclear energy expansion by cutting red tape, increasing tax incentives, partnering with next-gen nuclear energy companies, and beyond.
AI hyperscalers Meta, Amazon, Alphabet, and Microsoft have all rushed to secure more nuclear power and made deals to accelerate the development of next-generation nuclear technology, supported by their collective trillion-dollar balance sheets.
The reason is simple: without more power, the AI boom might be doomed to die on the vine.
AI marks a paradigm shift for energy demand after technology companies drove economic and stock market expansion in the post-financial crisis world without straining the grid. U.S. electricity generation remained roughly flat between 2010 and 2023.
Image Source: Zacks Investment Research
Large data centers can consume nearly as much electricity as a midsize city because AI platforms like ChatGPT use at least 10x the energy of a typical Google search.
Data centers could jump from 4% of total U.S. power demand in 2023 to over 12% in 2030. Data center demand is already straining the grid and sending prices soaring.
Prices from the biggest U.S. power auction, held by grid operator PJM Interconnection in July, surged 22% to new all-time highs for 2026/2027 as demand outpaces supply—this came after prices skyrocketed over 800% last summer.
No one knows which AI hyperscalers will eventually dominate. What everyone is sure of is that the AI boom will be fueled by nuclear energy and natural gas.
Natural gas plants are far more cost-effective, and new construction will be much quicker as hyperscalers wait for nuclear plants to break ground at the end of the decade. And natural gas already accounts for by far the largest portion of U.S. electricity generation at 43%, vs. nuclear’s 20%.
Talen: Why the Amazon Partner is a Must Buy Stock
Talen Energy is an independent power producer (IPP) and a leading energy infrastructure company. Unlike traditional utility firms, TLN owns and operates facilities that generate electricity, which Talen then sells to utilities or major consumers such as Amazon (AMZN - Free Report) .
Talen owns and operates about 10.7 gigawatts (GW) of power generation capacity across five states, including 2.2 GW of carbon-free nuclear via its Susquehanna plant. Talen boasts that Susquehanna generates enough carbon-free nuclear energy to power 2 million homes. Its portfolio also includes a significant amount of natural gas.
The company was at the vanguard of the relationship between AI and nuclear. Talen announced plans to develop data centers at the Susquehanna nuclear plant back in July 2021.
Image Source: Zacks Investment Research
The company sold its Cumulus data center campus to Amazon last year and landed a long-term power agreement with AWS. TLN in June 2025 expanded its relationship with Amazon to provide 1,920 megawatts of carbon-free nuclear power through at least 2042.
Talen will supply electricity to Amazon to support AI and other cloud technologies at Amazon’s data center campus adjacent to Susquehanna, “with the ability to deliver to other sites throughout Pennsylvania.” On top of that, the expanded partnership will see Talen and Amazon explore building next-gen small modular reactors.
Talen stock soared to records in the middle of July after it announced a deal to buy two natural gas plants (one in Pennsylvania and one in Ohio).
Talen’s $3.8 billion deal is expected to boost its free cash flow per share by over 40% in 2026 and 50% through 2029. The acquisition also critically expands its annual generation capacity by 50% from 40 TWh to 60 TWh. The deal is set to close later this year.
Talen’s AI-Boosted Growth Outlook
Talen crushed our Q2 earnings estimate in early August, posting adjusted quarterly earnings per share (EPS) of $1.50 vs. our estimate of a -$1.13 loss. Its operating revenue jumped 29% YoY to $630 million, topping our $480.7 million estimate.
The nuclear power and natural gas company is projected to grow its revenue by 15% in 2025 and 62% next year to climb from $2.12 billion in 2024 to nearly $4 billion next year.
Image Source: Zacks Investment Research
TLN’s adjusted EPS are projected to slip 30% YoY in 2025 following first-half declines. But its earnings are projected to surge 187% in Q3, 122% in the fourth quarter, and 234% next year.
Talen’s earnings estimates have popped since its release, including a 37% jump for 2026, helping it earn a Zacks Rank #1 (Strong Buy).
TLN is optimistic about its growth outlook, which is driven by its “ability to offer reliable, grid-supported and regionally diverse capacity to hyperscale data centers and other large commercial off-takers.”
Buy AI Energy Stock Talen On the Dip?
Talen stock has jumped 160% in the past year, including a 50% run in the past three months. Despite Talen’s 12-month run, investors can still get in near the ground floor since the AI boom and energy expansion/transition are just starting.
TLN stock has dropped 10% from its early-August peaks to slide below its 21-day. The nuclear energy company has fallen from overheated RSI levels to roughly neutral, and it could hold its ground near its July breakout levels.
Some traders might want to wait for a possible pullback to its 50-day moving average before diving into Talen.
Image Source: Zacks Investment Research
Overall, Wall Street is very bullish on the stock, with 11 of the 12 brokerage recommendations Zacks has sitting at “Strong Buys.”
On top of that, Talen’s valuation levels have improved on the back of its soaring earnings outlook. Its price-to-earnings to growth (PEG) ratio of 1.5 marks a 70% discount to its highs and solid value compared to the S&P 500.
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Bull of the Day: Talen Energy Corporation (TLN)
Key Takeaways
Talen Energy Corporation (TLN - Free Report) is a leading independent power producer that’s a direct long-term investment in the growing relationship between artificial intelligence and nuclear energy.
Wall Street has jumped into Talen, which already has a nuclear power deal with AI hyperscaler Amazon, and other nuclear energy stocks because TLN and its peers are part of a small group of companies ready to power the energy-hungry AI boom.
U.S. electricity supply will have to expand more than 5x faster than the prior two decades to meet demand, according to AI industry projections.
Alongside nuclear energy, the rapid build-out of AI data centers is also fueling surging natural gas demand. Talen made a blockbuster natural gas deal in the middle of July that will increase its annual generation by 50%.
This backdrop is why TLN stock soared 160% in the past year, crushing Nvidia and the Nasdaq.
Talen's recent pullback sets up a better buying opportunity for one of the leading players in nuclear energy that's prepared to fuel the AI age.
Buy Nuclear as Part of Your AI Stock Portfolio
The U.S. government aims to quadruple nuclear energy capacity by 2050. It is spurring nuclear energy expansion by cutting red tape, increasing tax incentives, partnering with next-gen nuclear energy companies, and beyond.
AI hyperscalers Meta, Amazon, Alphabet, and Microsoft have all rushed to secure more nuclear power and made deals to accelerate the development of next-generation nuclear technology, supported by their collective trillion-dollar balance sheets.
The reason is simple: without more power, the AI boom might be doomed to die on the vine.
AI marks a paradigm shift for energy demand after technology companies drove economic and stock market expansion in the post-financial crisis world without straining the grid. U.S. electricity generation remained roughly flat between 2010 and 2023.
Image Source: Zacks Investment Research
Large data centers can consume nearly as much electricity as a midsize city because AI platforms like ChatGPT use at least 10x the energy of a typical Google search.
Data centers could jump from 4% of total U.S. power demand in 2023 to over 12% in 2030. Data center demand is already straining the grid and sending prices soaring.
Prices from the biggest U.S. power auction, held by grid operator PJM Interconnection in July, surged 22% to new all-time highs for 2026/2027 as demand outpaces supply—this came after prices skyrocketed over 800% last summer.
No one knows which AI hyperscalers will eventually dominate. What everyone is sure of is that the AI boom will be fueled by nuclear energy and natural gas.
Natural gas plants are far more cost-effective, and new construction will be much quicker as hyperscalers wait for nuclear plants to break ground at the end of the decade. And natural gas already accounts for by far the largest portion of U.S. electricity generation at 43%, vs. nuclear’s 20%.
Talen: Why the Amazon Partner is a Must Buy Stock
Talen Energy is an independent power producer (IPP) and a leading energy infrastructure company. Unlike traditional utility firms, TLN owns and operates facilities that generate electricity, which Talen then sells to utilities or major consumers such as Amazon (AMZN - Free Report) .
Talen owns and operates about 10.7 gigawatts (GW) of power generation capacity across five states, including 2.2 GW of carbon-free nuclear via its Susquehanna plant. Talen boasts that Susquehanna generates enough carbon-free nuclear energy to power 2 million homes. Its portfolio also includes a significant amount of natural gas.
The company was at the vanguard of the relationship between AI and nuclear. Talen announced plans to develop data centers at the Susquehanna nuclear plant back in July 2021.
Image Source: Zacks Investment Research
The company sold its Cumulus data center campus to Amazon last year and landed a long-term power agreement with AWS. TLN in June 2025 expanded its relationship with Amazon to provide 1,920 megawatts of carbon-free nuclear power through at least 2042.
Talen will supply electricity to Amazon to support AI and other cloud technologies at Amazon’s data center campus adjacent to Susquehanna, “with the ability to deliver to other sites throughout Pennsylvania.” On top of that, the expanded partnership will see Talen and Amazon explore building next-gen small modular reactors.
Talen stock soared to records in the middle of July after it announced a deal to buy two natural gas plants (one in Pennsylvania and one in Ohio).
Talen’s $3.8 billion deal is expected to boost its free cash flow per share by over 40% in 2026 and 50% through 2029. The acquisition also critically expands its annual generation capacity by 50% from 40 TWh to 60 TWh. The deal is set to close later this year.
Talen’s AI-Boosted Growth Outlook
Talen crushed our Q2 earnings estimate in early August, posting adjusted quarterly earnings per share (EPS) of $1.50 vs. our estimate of a -$1.13 loss. Its operating revenue jumped 29% YoY to $630 million, topping our $480.7 million estimate.
The nuclear power and natural gas company is projected to grow its revenue by 15% in 2025 and 62% next year to climb from $2.12 billion in 2024 to nearly $4 billion next year.
Image Source: Zacks Investment Research
TLN’s adjusted EPS are projected to slip 30% YoY in 2025 following first-half declines. But its earnings are projected to surge 187% in Q3, 122% in the fourth quarter, and 234% next year.
Talen’s earnings estimates have popped since its release, including a 37% jump for 2026, helping it earn a Zacks Rank #1 (Strong Buy).
TLN is optimistic about its growth outlook, which is driven by its “ability to offer reliable, grid-supported and regionally diverse capacity to hyperscale data centers and other large commercial off-takers.”
Buy AI Energy Stock Talen On the Dip?
Talen stock has jumped 160% in the past year, including a 50% run in the past three months. Despite Talen’s 12-month run, investors can still get in near the ground floor since the AI boom and energy expansion/transition are just starting.
TLN stock has dropped 10% from its early-August peaks to slide below its 21-day. The nuclear energy company has fallen from overheated RSI levels to roughly neutral, and it could hold its ground near its July breakout levels.
Some traders might want to wait for a possible pullback to its 50-day moving average before diving into Talen.
Image Source: Zacks Investment Research
Overall, Wall Street is very bullish on the stock, with 11 of the 12 brokerage recommendations Zacks has sitting at “Strong Buys.”
On top of that, Talen’s valuation levels have improved on the back of its soaring earnings outlook. Its price-to-earnings to growth (PEG) ratio of 1.5 marks a 70% discount to its highs and solid value compared to the S&P 500.