The nuclear energy sector is experiencing a renaissance as tech giants like Google and Amazon embrace atomic power to fuel their AI data centers. This shift has sparked a surge in nuclear energy-related stocks, with some companies seeing their share prices skyrocket.
Last week, Google announced a major agreement with Kairos Power, a privately-owned small modular reactor (SMR) company, to build new nuclear facilities. Meanwhile, Amazon inked a deal with Energy Northwest to construct four advanced SMRs. These developments have triggered a wave of investment in the nuclear sector, propelling the stock prices of companies involved in SMR technology.
One such company is Oklo, Inc., which develops fast fission power plants to provide nuclear energy at scale. Oklo’s stock has surged over 190% in the past month, driven by its innovative technology and its involvement in the burgeoning nuclear energy market. Another notable player is NuScale Power Corp., which develops modular light water reactor nuclear power plants. Its stock has climbed nearly 100% in the past month, reflecting the growing demand for its SMR solutions. Nano Nuclear Energy, Inc. is also experiencing strong growth, with its stock up 85% in the past month due to its development of portable and advanced nuclear microreactors.
The increased demand for nuclear energy is not limited to SMR developers. Power companies are also reaping the benefits as data centers and AI applications require significant energy to power these cutting-edge technologies. Constellation Energy Corp., for example, recently signed a massive deal with Microsoft Corp. to power its AI data centers, including plans to restart a nuclear facility. This move is part of a 20-year power purchase agreement that reflects the growing reliance on nuclear energy for powering the tech industry’s future.
Vistra Corp., one of the largest power producers in the US, is also capitalizing on the nuclear trend. The company owns 41 gigawatts of nuclear, coal, natural gas, and solar power generation, making it a key player in the energy landscape. Vistra’s stock has been a standout performer, surpassing even NVIDIA Corp., the best performer in 2023, and becoming the top performer in the S&P 500 in 2024.
The surge in demand for nuclear power has also driven up the price of uranium, a key component in nuclear energy production. Prices have surged roughly 60% since the beginning of the year, benefiting uranium producers like Cameco Corporation. Cameco’s shares have risen nearly 45% over the past month as it expands its uranium production and explores new projects. Centrus Energy Corp., a supplier of enriched uranium fuel, has also seen its stock price climb, gaining 21% on Friday after receiving a contract from the Department of Energy to expand its domestic commercial production.
The growing enthusiasm for nuclear energy is reflected in the sentiment of industry leaders. Jacob DeWitte, co-founder and CEO of Oklo, recently highlighted the immense opportunities for companies in the nuclear sector. “It’s an extremely exciting time for nuclear… the numbers are staggering here. The power demand numbers, frankly, they’re mind-blowing,” DeWitte stated. “It’s a huge opportunity for a lot of players in the space, and nuclear offers a really great solution.”
With the tech industry increasingly reliant on nuclear energy, the future looks bright for companies involved in this sector. As the demand for clean and reliable energy continues to rise, nuclear energy is poised to play a pivotal role in powering the future of technology and beyond.