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Big tech's bold move: Is nuclear the next big thing?
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Nuclear Stocks Soar as Tech Giants Invest in Nuclear Power to Fuel AI Ambitions

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Moomoo News Global joined discussion · Oct 17 07:26
$Amazon (AMZN.US)$announced on Wednesday that it has signed agreements to support nuclear-power projects across the U.S., including a commitment to invest over $500 million in the development of Small Modular Reactors (SMR).This move aligns Amazon with other tech giants seeking to harness nuclear energy to fuel rapid advancements in artificial intelligence and data center building.
Last month, $Microsoft (MSFT.US)$ partnered with Constellation to reboot Pennsylvania's Three Mile Island nuclear facility, aiming to support its AI projects. Meanwhile, on Monday, $Alphabet-C (GOOG.US)$ disclosed its investment in seven small nuclear reactors from Kairos Power, targeting an additional 500 megawatts of power by decade's end to meet its AI demands.
The surge in demand for nuclear power has significantly benefited reactor owners. In the past 20 trading days, Sam Altman-backed $Oklo Inc (OKLO.US)$ has soared by 166%. $NuScale Power (SMR.US)$ and $NANO Nuclear Energy (NNE.US)$ have seen their stock prices approximately double in the same period, with year-to-date increases estimated at 480% and 436%, respectively. Both $Constellation Energy (CEG.US)$ and $Vistra Energy (VST.US)$'s stock values have more than doubled this year.
Nuclear Stocks Soar as Tech Giants Invest in Nuclear Power to Fuel AI Ambitions
Data centers are increasingly opting for nuclear power for several reasons:
1. Rising Energy Demand in Data Centers:
With the rise of AI, data centers have seen a significant increase in energy consumption. A recent report from HSBC on Tuesday indicated that by 2030, data centers could account for 9% of U.S. electricity consumption—more than double the current figure. The International Energy Agency (IEA) forecasts that power consumption by data centers, AI, and cryptocurrency sectors could double by 2026, making the future tightening of power supplies inevitable.
Nuclear Stocks Soar as Tech Giants Invest in Nuclear Power to Fuel AI Ambitions
2. Efficient, Stable, and Clean Nuclear Power
Big tech companies are increasingly turning to nuclear power as a solution to align their substantial electricity needs with their climate commitments. Nuclear power offers efficient and stable energy production while being safe and clean. $NVIDIA (NVDA.US)$ CEO Jensen Huang has endorsed nuclear energy as a "wonderful way forward" to maintain operations in AI data centers continuously.
Nuclear Stocks Soar as Tech Giants Invest in Nuclear Power to Fuel AI Ambitions
3. Mature Nuclear PowerIndustry in the U.S.
Nuclear power has been a safe, reliable, and economical source of nearly 20% of the U.S. electrical generation over the past two decades. It remains the largest contributor (over 70%) to non-greenhouse-gas-emitting electric power generation in the country.
Moreover, the U.S. leads globally in nuclear power capacity and boasts the longest average operating times—42.1 years. Although SMRs largely remain unapproved by regulators and new nuclear power plants are time-consuming and costly to build, often suffering from delays and budget overruns, Kelly Trice, president of Holtec, suggests that restarting old reactors could be a simpler, more economical, and faster alternative compared to constructing new nuclear facilities.
What Do Analysts Say?
In addition to the pull from data centers, the reshoring and expanding domestic production of chips, electric vehicles, batteries, and solar panels are also driving electricity demand. Moreover, geopolitical risks heightened by supply disruptions from the Russia-Ukraine conflict have underscored the necessity for energy security. Fund managers are now reassessing nuclear energy, traditionally avoided by environmentally-focused investors, anticipating its resurgence.
Robert Lancastle, a portfolio manager at J O Hambro, mentions that the global energy supply needed to sustain the ongoing expansion of artificial intelligence is unlikely to be met without nuclear power.
Arcano at Morgan Stanley highlights the Microsoft-Constellation deal as a testament to the value of nuclear power for hyperscalers or major data center operators. He has significantly raised his price targets for three unregulated nuclear-power utilities poised to benefit: Constellation (up to $313 from $233), Vistra (up to $132 from $110), and $Public Service Enterprise Group (PEG.US)$ (up to $95 from $83).
Source: WSJ, Benzinga
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