Shares of nuclear energy companies hit record highs this week after tech giants Amazon and Google entered into landmark power agreements, accelerating efforts to deploy the first small modular reactors (SMRs) in the United States.
Stock prices for U.S. SMR developers Oklo Inc and NuScale Power surged by 99% and 37%, respectively, following announcements that rivals X-energy and Kairos Power, both private SMR developers, secured significant financing deals. Shares of Cameco, Oklo, NuScale, Constellation Energy, and BWX Technologies all traded at record highs during the week of October 14-20.
Cameco, a leading uranium producer, has seen its shares increase by 38% this year, while nuclear components supplier BWX Technologies has experienced a 65% rise in stock value.
The decisions by Amazon and Google to invest in small reactors reflect their need for reliable, cost-effective, and clean electricity to power a new wave of energy-intensive artificial intelligence data centers. These agreements support the deployment of up to a dozen next-generation reactors to provide low-carbon electricity to the tech giants' facilities.
Investors interpret these developments as evidence of a nuclear renaissance gaining momentum after a downturn following Japan's 2011 Fukushima disaster. The proliferation of data centers is fueling historic growth in U.S. electricity demand, underscoring the need for sustainable energy sources to reduce dependence on fossil fuels and advance decarbonization efforts.
These developments highlight a significant shift toward nuclear energy as a key component in meeting future energy demands, particularly in supporting the infrastructure required for advanced technologies like artificial intelligence.
