Nuclear energy stocks have experienced significant growth.
NuScale Power’s shares increased by as much as 54.9% during the week, as reported by S&P Global Market Intelligence, due to market speculation surrounding future nuclear expansion. However, towards the end of the week, some gains were relinquished, leaving the shares up by 37.7% from the previous Friday’s close.
The resurgence of nuclear energy interest is largely attributed to the substantial energy demands of AI data centers. Microsoft initiated a trend by signing a substantial agreement to reopen the reactors at Three Mile Island. This week, Amazon and Alphabet followed suit.
Amazon announced plans to collaborate with utilities to develop four small modular reactors in Washington State and entered into an agreement with Dominion Energy to explore the development of an SMR project near Dominion’s North Anna nuclear power station. Additionally, Amazon invested in X-energy, a privately held company.
Alphabet signed a contract with Kairos Power to potentially develop up to 500 megawatts of small nuclear reactors to power its data centers. This trend indicates that major technology companies are increasingly investing in nuclear energy, potentially benefiting the industry.
Despite the rise in NuScale’s stock, recent announcements might not entirely favor the company. None of the major deals seem to involve NuScale’s technology, with operational targets set for 2030 or later, and some projects extending to 2035.
Although nuclear energy deals are increasing, the sector remains years away from generating revenue or achieving profitability. It remains uncertain how many projects NuScale is securing. Given the speculative nature of this week’s market movements, observers are advised to remain cautious.
