The artificial intelligence (AI) revolution is creating an unprecedented surge in energy demand, with data centers projected to account for up to one-third of the anticipated increase in U.S. electricity demand from 2024 through 2026, according to the International Energy Agency. Major tech companies are making bold moves into nuclear power to meet their growing energy needs.
Tech giant Microsoft (NASDAQ: MSFT) recently signed a 20-year deal with Constellation Energy (NASDAQ: CEG) to power its data centers, while Amazon strategically positioned a $650 million data center near Pennsylvania’s Susquehanna nuclear plant. Alphabet, the parent company of Google, has also invested in advanced nuclear technologies, including fusion power.
This shift towards nuclear power as the preferred solution for tech giants’ massive energy requirements has opened up new investment opportunities in the industry. Three nuclear power stocks stand out as potential players in fueling the AI revolution.
1. Oklo (NYSE: OKLO)
OKLO, backed by OpenAI CEO Sam Altman, is leading the next generation of nuclear technology with its advanced small modular reactors (SMRs). The company’s stock has delivered a remarkable 113% return year to date since its public debut last May, outperforming the benchmark S&P 500. Oklo’s innovative Aurora powerhouses are scheduled to begin operations in 2027, positioning the company to meet the surging demand for reliable clean energy from tech companies expanding their AI operations.
Investors have shown strong confidence in Oklo’s potential, despite meaningful revenue being several years away. While price swings are expected along the path to commercialization, the company’s innovative approach to nuclear technology makes it a compelling investment opportunity.
2. Constellation Energy
Constellation Energy recently secured a groundbreaking 20-year agreement with Microsoft to restart a reactor at Three Mile Island, signaling growing confidence in nuclear power’s role in the AI revolution. With its extensive nuclear infrastructure and operational expertise, Constellation is well-positioned to meet the growing demand for stable, carbon-free power from tech companies expanding their AI operations. The company’s shares have surged more than 126% this year, vastly outperforming the S&P 500, showcasing investors’ enthusiasm for its strategic moves in the nuclear space.
3. Lightbridge (NASDAQ: LTBR)
Lightbridge is revolutionizing nuclear fuel technology with its metallic fuel design, which promises to improve the efficiency and safety of existing and future nuclear reactors. As data centers drive unprecedented demand for reliable power, Lightbridge’s next-generation fuel design offers increased power output and enhanced safety margins, making it an attractive solution for utilities serving tech companies’ growing energy needs. The company’s stock has outperformed the S&P 500 this year, reflecting investor recognition of the critical role nuclear technology plays in meeting escalating power demands from AI data centers.
These three companies represent different aspects of the nuclear power renaissance, offering investors unique opportunities to participate in nuclear power’s resurgence. From innovative reactor designs to advanced fuel technology and established infrastructure, each stock provides a distinct way to capitalize on the growing demand for nuclear power in the AI era.
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As the AI revolution drives increased energy demand, the intersection of technology and nuclear power presents unique opportunities for investors looking to capitalize on the evolving energy landscape. Stay informed and explore potential investment opportunities in nuclear power stocks to fuel the AI revolution and drive returns in your portfolio.