Big tech companies like Amazon and Microsoft have nuclear power contracts for their AI data centers.
The resurgence of nuclear power is being driven by the demand for clean energy and the surge in AI power demand.
These nuclear-focused stocks have soared this year amid the ongoing nuclear renaissance.
The nuclear power industry is experiencing a renaissance as demand for clean electricity soars across the country, in part due to a surge in energy demand related to artificial intelligence data centers.
Big tech companies like Amazon, Microsoft, and Alphabet are signing nuclear power contracts to meet their growing energy needs as AI becomes a bigger part of their business.
A power company is restarting its Three Mile Island nuclear power plant after signing a 20-year power sale agreement with Microsoft.
Three Mile Island, located along the Susquehanna River in Pennsylvania, was the site of the country’s worst nuclear disaster in 1979.
Meanwhile, Amazon led a $500 million funding round for a company developing modular nuclear reactors and bought a nuclear power data center for $650 million in March.
“One of the quickest ways to address climate change is to transition our society to carbon-free energy sources. Nuclear power is an important investment area for Amazon because it is carbon-free and scalable. ,” Matt Garman, CEO of Amazon Web Services, said in a press release.
Wall Street analysts are encouraged as well.
“Nuclear energy projects include the construction of multiple small modular reactors (SMRs), a compact and advanced type of nuclear reactor that can be built close to the grid and completed faster than traditional nuclear reactors. “SMRs also offer the potential to reduce carbon emissions and are a path to cleaner, more sustainable energy,” CFRA analyst Arun Sundaram said in a note last week.
He further added, “As the full power of AI relies on both data centers and energy infrastructure, these investments will further help AMZN secure its position as a leading cloud/AI provider.” .
The return of nuclear power has caused a big stir on Wall Street, with some stocks more than doubling in just a few days this month.
From utilities to uranium miners to small nuclear developers, these stocks are soaring amid the resurgence of the U.S. nuclear industry.
7. Cameco
Ticker: CCJ
Market value: $23.6 billion
Year-to-date performance: +25%
6.BWX Technology
Ticker: BWXT
Market value: $11.3 billion
Year-to-date performance: +62%
5. Okro
Ticker: OKLO
Market value: $2.4 billion
Year-to-date performance: +88%
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