Nuclear Stocks Are On The Rise: What's Driving The Surge?

Several nuclear-linked stocks such as Oklo Inc. OKLO, Lightbridge Corporation LTBR and Nano Nuclear Energy Inc. NNE, are trading higher on continued momentum following recent investments by Amazon Web Services (AWS) and Google into nuclear energy as a power source for data centers.

Last week, AWS announced three agreements to advance nuclear energy projects, including the development of Small Modular Reactors. This includes a partnership with Energy Northwest in Washington, targeting an initial 320 MW of capacity, with potential expansion to 960 MW. AWS also partnered with Dominion Energy in Virginia to explore SMR deployment near the North Anna nuclear station, aiming to generate at least 300 MW of power in the region.

In addition, Amazon has invested in X-energy to support SMR manufacturing, potentially generating five gigawatts of nuclear capacity. Matt Garman, CEO of AWS, stated that nuclear energy aligns with Amazon's Climate Pledge to achieve net-zero carbon emissions by 2040.

Alongside these deals, Google also signed an agreement to purchase power from a series of SMRs developed by Kairos Power. The first reactor is expected to be operational by 2030, with additional reactors planned by 2035.

Why It Matters: The recent investments by both Amazon and Google underscore a growing trend among tech companies seeking carbon-free energy sources to manage the rising power needs of data centers driven by AI. The announcements have contributed to increased investor optimism across the nuclear energy sector.

Price Action: Oklo shares saw an increase of 6.81%, trading at $19.29. Lightbridge shares rose by 26.1%, reaching $7.48, while Nano Nuclear Energy shares gained 4.79%, trading at $19.27.

Image Created Via Midjourney.