Nuclear Power Is the New A.I. Trade. What Could Possibly Go Wrong?
Published On Sep 27, 2024, 5:03 AM
The demand for energy driven by artificial intelligence (AI) is significantly impacting utility stocks, particularly those in nuclear power. Companies like Constellation Energy and Vistra have seen their stock prices soar, with Constellation up 121% year-to-date and Vistra up 199%. Constellation announced a deal to supply energy from the Three Mile Island nuclear plant to Microsoft's AI data centers, and Vistra is also negotiating with AI companies. This resurgence in nuclear energy is partly due to the demand from AI operations, connecting tech energy needs to traditional power generating methods.
Stock Forecasts
CEG
Positive
With AI demand for energy increasing, nuclear power stocks like Constellation Energy and Vistra are likely to continue their upward momentum, supported by new energy deals with major tech companies. Their unique position in meeting A.I. energy requirements offers a strong growth opportunity.
VST
Positive
Vistra's involvement in supplying energy for A.I. operations is poised to enhance its market position and financial performance, bolstering investor confidence and likely sustaining its current stock trajectory.
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