Artificial intelligence and semiconductors stocks skyrocketed off their late March lows to new all-time highs.

There’s no telling when the next stock market pullback will occur, since calling near-term tops and bottoms can only be done in retrospect.

That said, stock market gravity will take over at some point, with a healthy wave of selling due when investors consider that the iShares Semiconductor ETF (SOXX) has soared over 70% since March 30. The move has it at its most overbought RSI levels in the past 10 years.

Thankfully, the bull case for the AI boom remains firmly intact, with the AI hyperscalers prepared to spend upwards of $800 billion in capex in 2026 alone—with that figure projected to climb again in 2027.

Image Source: Zacks Investment Research

That means that investors should remain optimistic about the broader artificial intelligence mega-cycle, and take advantage of the next AI-driven drawdown.

In the meantime, it’s time to consider buying best-in-class AI-boosted stocks that have lagged the market in 2026 and are trading at least 30% below their all-time highs.

Today we are diving into two great long-term AI energy stocks—Vistra and Constellation—to buy now in May that might look cheap compared to the rest of the AI trade right now.

Buy AI Energy Stocks Now and Hold Forever

Simply put, there won’t be an AI age without more power. The most important new phrase in Wall Street trading circles is that “you can’t print more electrons.” (electricity is made of electrons flowing through the grid)

Tech giants and AI hyperscalers such as Microsoft and Meta are pouring billions of dollars into chips, servers, and more, getting tangible results rather quickly. They cannot, however, throw money around and generate the massive amount of extra electricity required to power their ambitious AI growth efforts overnight.

AI data centers consume as much electricity as a mid-sized city. This backdrop has sparked a race to bring more power online as quickly as possible, which is no easy task.

AI growth, alongside reshoring and the energy transition, is expected to drive a 25% increase in U.S. electricity demand by 2030 and 75% to 100% growth by 2050. This is straining the grid after decades of underinvestment, with dispatchable power supply expected to fall behind demand through at least 2030.

This energy bottleneck provides the base case for the AI energy trade spanning nuclear, natural gas, utilities infrastructure, and beyond.

The AI hyperscalers have all made long-term power agreements with nuclear energy companies because they crave the clean, always-on reliability of nuclear power, which has provided ~20% of U.S. electricity for over three decades.

The U.S. government under Biden and now Trump (highlighting bipartisan support) is attempting to spur a nuclear energy revival after decades of stagnation, with Trump aiming to help quadruple nuclear capacity by 2050.

Natural gas is another big winner since it is cleaner than coal and far more reliable than intermittent sources such as solar and wind. The AI hyperscalers are making long-term deals to buy more natural gas.

Buy Nuclear Energy Stock CEG Down 30% and Hold 

Constellation Energy (CEG Quick QuoteCEG - Free Report)  kick-started the growing relationship between AI hyperscalers and nuclear power via its 20-year power purchase agreement with Microsoft (MSFT Quick QuoteMSFT - Free Report)  in the fall of 2024.

CEG has expanded its AI hyperscaler portfolio since then, and it completed its $27 billion deal to buy natural gas and geothermal powerhouse Calpine in early 2026. The move expands its footprint into growth-and-tech-heavy California and Texas and cemented its standing as one of the energy companies of the 21st century.

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The AI hyperscalers and the U.S. Department of Energy are helping Constellation restart nuclear reactors that were shuttered for economic reasons and pursue its next-gen small modular reactor ambitions.

CEG raised its dividend by another 10% in 2026 as part of a plan to consistently boost its payout. Constellation reaffirmed its 2026 EPS range when it reported on May 11, and said it expects EPS growth of 20%+ from 2026-2029.

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Constellation stock has soared 420% since its Wall Street debut in early 2022 following its spin-off from Exelon. Yet, CEG is down slightly over the last 12 months, and it has fallen over 30% from its mid-October 2025 highs.

The downturn marks a healthy recalibration after a massive run as its upward earnings revisions cooled. CEG’s long-term outlook remains intact, and 15 of the 20 brokerage recommendations Zacks has are “Strong Buys.”

CEG’s average Zacks price target marks 36% upside from its current levels. It is trading in line with the S&P 500, the Alternative Energy industry, and its historic median at 22.2X forward 12-month earnings.

Image Source: Zacks Investment Research

Investors might want to buy the stock now on the dip for near-term and long-term upside. The chart above shows that traders might start stepping in as CEG closes in on its Microsoft-deal breakout levels from late 2024.

Long-Term Investors Should Buy AI Energy Stock VST Now

Vistra (VST Quick QuoteVST - Free Report)  is one of the largest competitive power generators in the U.S. with a best-in-class portfolio spanning nuclear, natural gas, battery storage, and beyond. VST boasts two separate 20-year power purchase agreements with AI hyperscalers Meta and Amazon that cement its nuclear energy upside.

It owns and operates the second-largest competitive nuclear power fleet in the U.S. It is also growing its portfolio via natural gas deals that are helping supply much-needed power to fuel the AI boom as new nuclear generation takes much longer to bring online.

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The Texas-based company is benefiting from the state’s economic expansion and the growing tech industry. The company also operates in California, Illinois, and most of the Northeastern U.S., operating in a total of 18 states and DC, including all major competitive wholesale markets in the U.S.

VST stock has soared almost 800% in the last five years, including a 470% charge in the past three, crushing Meta, Amazon, and many other AI and big tech stocks in the process. Yet investors can buy Vistra stock around where it was in October of 2024 after its tanked around 33% from its 2025 highs.

Image Source: Zacks Investment Research

Vistra’s average Zacks price target offers 63% upside from its current level. The stock is attempting to find support at the key technical range highlighted in yellow.

Its downturn, mixed with its strong earnings outlook, has it trading 52% below its recent highs and 8% below its industry at 14.3X forward 12-month earnings. The stock is attempting to find support at the key technical range highlighted in yellow.

Along with its valuation, Vistra has $1.5 billion remaining under its existing share repurchase authorizations expected to be utilized through year-end 2027. The company has also consistently lifted its dividend while maintaining a low 12% payout ratio.

Image Source: Zacks Investment Research

The AI energy standout reaffirmed its 2026 outlook when it reported on May 7, and its longer-term 2027 EPS estimate surged again following its release. Vistra is projected to grow its adjusted earnings by 77% in 2026 and another 23% next year to climb from $5.26 a share in 2025 to $11.44 per share next year.