We just covered the Billionaire Howard Marks’ 10 Stock Picks with Huge Upside Potential and Talen Energy Corporation (NASDAQ:TLN) ranks 7th on this list.
Talen Energy Corporation (NASDAQ:TLN) first appeared in the 13F portfolio of Oaktree Capital Management in the third quarter of 2023. This position comprised just under 700,000 shares. The fund reduced this position by almost half in the next few months, shedding 43% of the stake to bring share ownership down to under 400,000 shares. Further reductions of 19% and 55% followed in the next two quarters. In the past two quarters, however, the fund has started loading up on the stock again. Filings for the fourth quarter of 2025 show that the fund owned over 331,000 shares in the company, up 14% compared to filings for the previous quarter.
Photo by Arturo Añez on Unsplash
Talen Energy Corporation (NASDAQ:TLN) has emerged as a high-conviction AI infrastructure play for hedge funds. While traditionally a utility stock, the smart money is now treating it as a backdoor way to invest in the data center power crunch. The primary catalyst for this is a unique partnership with Amazon Web Services (AWS). In late 2025, Talen expanded its Power Purchase Agreement (PPA) with Amazon to supply up to 1,920 MW of carbon-free energy from its Susquehanna nuclear plant. This 17-year contract is estimated to generate roughly $18 billion in total revenue. In its Q4 2025 earnings call, the company reaffirmed its 2026 guidance for Adjusted Free Cash Flow of $980 million to $1.18 billion.
While we acknowledge the potential of TLN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: Israel Englander Stock Portfolio: Top 10 Stock Picks and Billionaire Stan Druckenmiller’s 10 Small and Mid-Cap Stock Picks with Huge Upside Potential.
Disclosure: None. Follow Insider Monkey on Google News.