Sam Altman’s nuclear power startup, Oklo, has surged more than 125% in October. Major tech companies like Microsoft, Amazon, and Google are investing in nuclear energy to fuel their data centers and artificial intelligence systems. Microsoft announced a deal with Constellation Energy in September to provide nuclear power for its data centers.
Amazon has also made moves toward nuclear, paying $650 million for a nuclear-powered data center campus in Pennsylvania. Hyperscalers are increasingly looking to nuclear power to tackle the growing energy consumption from data centers. McKinsey & Co.
projects that data center energy demand in the U.S. will grow from around 4% currently to 11%-12% by 2030. Nuclear power and utility stocks have been riding the artificial intelligence energy wave in 2024. Morgan Stanley analysts see a “nuclear renaissance” underway, with $1.5 trillion in investment in new capacity through 2050.
Amazon’s $650 million nuclear investment
Constellation Energy and Vistra Energy have surged 30% and 40%, respectively, since the Microsoft-Constellation Energy deal. JPMorgan initiated coverage of both stocks with an overweight rating.
Oklo, backed by Sam Altman, Peter Thiel, and Cathie Wood, has ballooned 125% in October and around 190% since the Microsoft deal. Other SMR-focused companies like Nano Nuclear Energy and NuScale Power have also seen significant gains. Uranium companies like Cameco and Uranium Energy have also advanced, with Cameco being one of the world’s largest providers of uranium for nuclear fuel solutions.
The surge in demand for nuclear energy is largely driven by the substantial energy requirements of AI technologies. As tech companies rapidly expand their AI capabilities, the need for stable and sustainable energy sources has become more pressing. Governments and private sectors are beginning to recognize nuclear power’s role in a sustainable and technologically advanced future.
The bullish performance of nuclear energy stocks underscores the growing confidence in the industry’s future.
