From Nasdaq: 2025-05-01 15:42:00

Shares of nuclear power providers Constellation Energy (NASDAQ: CEG), Vistra Energy (NYSE: VST), and Oklo (NYSE: OKLO) surged on Thursday, up 8%, 5.8%, and 8.5% respectively, as of 1:45 p.m. ET. The rally was likely driven by positive financial results and future AI spending guidance from tech giants Microsoft and Meta Platforms.

The emergence of low-cost AI models like DeepSeek and recession fears have impacted AI-related companies, including electricity providers. Nuclear power is seen as a quick, carbon-neutral solution to meet the growing electricity demand from AI data centers. This trend benefits companies like Constellation, Vistra, and Oklo with existing nuclear capacity or SMR technology.

Microsoft reported strong earnings, with Azure cloud platform growing 35% and projected to continue growing. The company plans significant capital expenditure to meet AI computing demand. Meta Platforms also beat expectations and raised its capex guidance, reflecting high demand for compute resources. The AI infrastructure spending remains robust, driving electricity demand.

Despite concerns about DeepSeek efficiencies and economic uncertainties, AI companies continue to invest in data center infrastructure, supporting electricity demand. The growth opportunities in AI are too significant to ignore, leading to sustained demand for electricity. This trend bodes well for power providers like Constellation Energy, Vistra Energy, and Oklo.

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Read more at Nasdaq: Why Nuclear Stocks Soared Today