Nuclear Energy Stocks

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>>> AI Is Giving Nuclear Power a Big Lift. 4 Stocks Riding the Trend.

Data centers being built to run AI systems require lots of power. Nuclear power is exceptionally well suited to meeting such enormous demands.

Barron's

by Avi Salzman

March 28, 2024


https://www.barrons.com/articles/ai-nuclear-power-stocks-8852a830


A small set of companies that own nuclear reactors have seen their stocks soar at Nvidia-like rates in the past few months, part of a little-noticed renaissance in an industry that hasn’t had much to brag about in years. They can thank artificial intelligence.

Nuclear power, it turns out, is exceptionally well suited to meeting the enormous electricity demands of data centers for AI. As a result, the stocks of Constellation Energy CEG, Vistra, and Talen Energy are each up more than 90% in the past year. There’s a good chance they’ll go still higher.

“The world clearly is moving in our direction,” said Constellation CEO Joe Dominguez on the company’s latest earnings call.

For years, most of the world was moving in the opposite direction. The fear of nuclear accidents like the 2011 Fukushima disaster is part of the problem. But economics have played a role, too. Operating a nuclear plant has been a terrible business — barely profitable without government subsidies. Generating electricity from nuclear fuel often costs more than generating it from natural gas, because natural-gas prices have fallen during the U.S. shale-drilling revolution. The growth of renewables also complicates life for nuclear power owners. When strong winds gust in Texas, the surge of wind power can cause electricity prices to fall below zero...

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