Move Over Meta, Microsoft — Constellation, NextEra Hit Big Tech Valuations In 2026's Weirdest Trade

The stock market's strangest trend of 2026 might be hiding in the utility sector. Constellation Energy Corp. (NASDAQ:CEG) and NextEra Energy Inc. (NYSE:NEE) — two stalwarts of the U.S. power grid — are now trading at earnings multiples that rival Silicon Valley's biggest names. CEG stock is moving. See the chart and price action here. Constellation's price-to-earnings ratio has surged to 30.3, topping Meta Platforms' (NASDAQ:META) 21.5 and even edging past Microsoft (NASDAQ:MSFT) at 26, according to Benzinga Pro data. Meanwhile, NextEra Energy sits at 25.3, roughly in line with premium tech valuations. For a sector once prized mainly for stability and dividend yield, the shift represents one of the market's most unexpected reratings in years. The primary driver? Wall Street's growing realization that AI's data-center boom is a utilities bull market in disguise. AI-Related Demand, Of Course Explosive energy demand from hyperscale data centers, cloud infrastructure and generative AI model training has pushed investors toward electricity providers—especially those positioned for clean generation and grid expansion. Constellation, a leader in nuclear power, and NextEra, dominant in renewables, have emerged as twin beneficiaries. The Upside-Down At the same time, traditional tech heavyweights are facing a valuation recalibration. Concerns over massive AI capex, slowing software growth, and what some are calling a "software apocalypse” have cooled enthusiasm around the sector's once-unstoppable leaders. Carnegie Investment Counsel summed up the rotation succinctly in its latest market commentary: "The early-2026 stock market rotation has produced unusual market dynamics … Market leadership has changed, which reminds us that markets are constantly recalibrating expectations." What makes this moment remarkable is not just valuation math, but who's wearing the "growth stock" crown now. Utilities as the new tech trade? In 2026, that paradox has become one of the market's most profitable ironies. Photo: Shutterstock