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Tech giants like Amazon and Microsoft are making nuclear power deals for their AI data centers.
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The revival of nuclear energy is driven by the demand for clean energy and the rising energy needs of AI.
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These nuclear-focused stocks have soared this year amid an ongoing nuclear renaissance.
The nuclear power industry is undergoing a renaissance as demand for clean energy soars across the country, driven in part by rising energy needs associated with artificial intelligence data centers.
Mega-cap tech companies including Amazon, Microsoft and Alphabet have signed nuclear power deals to meet their growing energy needs as AI becomes a bigger part of their businesses.
One utility is even restarting the Three Mile Island nuclear power plant after striking a 20-year deal to sell power to Microsoft.
Three Mile Island, located on Pennsylvania’s Susquehanna River, was the site of the nation’s worst nuclear accident in 1979.
Meanwhile, Amazon led a $500 million funding round for a company developing modular nuclear reactors and bought a nuclear-powered data center for $650 million in March.
“One of the fastest ways to tackle climate change is to transition our society to carbon-free energy sources, and nuclear power is both carbon-free and scalable, which is why it is a key investment area for Amazon,” says Amazon Web. Services CEO Matt Garman said in a press release.
Wall Street analysts are also encouraged.
“The nuclear power projects include the construction of several Small Modular Reactors (SMRs), a compact, advanced type of reactor that can be built closer to power grids and completed faster than traditional reactors. SMRs also offer the potential to reduce carbon emissions, paving the way to cleaner, more sustainable energy,” CFRA analyst Arun Sundaram said in a note last week.
He added: “With the full power of AI dependent on both data centers and energy infrastructure, these investments further help AMZN secure its positioning as a leading cloud/AI provider.”
The resurgence of nuclear energy has led to big moves on Wall Street, with some stocks more than doubling in just a few days this month.
From utilities to uranium miners to small-scale nuclear developers, these stocks are soaring amid the revival of the U.S. nuclear power industry.
7. Cameco
ticker: CCJ
Market value: $23.6 billion
YTD Performance: +25%
6. BWX Technologies
ticker: BWXT
Market value: $11.3 billion
YTD Performance: +62%
5. Okay
ticker: OKLO
Market value: $2.4 billion
YTD Performance: +88%
4. Constellation energy
ticker: CEG
Market value: $83.5 billion
YTD Performance: +128%
3. View
ticker: VST
Market value: $43.0 billion
YTD Performance: +224%
2. Nano nuclear energy
ticker: NNE
Market value: $589.6 million
YTD Performance: +272%
1. NuScale Power
ticker: SMR
Market value: $1.8 billion
YTD Performance: +481%
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