[Christian Harris]

Nuclear energy stocks emerged as dominant players in the S&P 500 in 2024, with companies such as Constellation Energy (CEG) and Vistra (VST) spearheading the sector’s impressive gains.

The surge was driven by a confluence of factors, most notably the growing demand for reliable, carbon-free electricity from Big Tech firms like Microsoft, Amazon, and Google.

These technology giants are increasingly turning to nuclear energy to power their energy-intensive AI infrastructure and massive cloud computing operations.

Key Drivers Behind The Surge

• Big Tech’s Energy Appetite: The rapid expansion of artificial intelligence (AI) and cloud technologies has dramatically increased the need for uninterrupted, 24/7 electricity. Unlike renewable sources such as wind and solar, nuclear energy offers consistent output, making it an attractive choice for companies seeking both sustainability and reliability.
• Policy Tailwinds: Governments worldwide, including the US, have doubled down on nuclear energy as part of their decarbonisation strategies. New tax credits and subsidies from the Inflation Reduction Act have made nuclear projects more financially viable, further boosting investor confidence.
• Technological Advancements: Innovations in small modular reactors (SMRs) have captured attention, promising lower costs, shorter build times, and enhanced safety features. Companies like Constellation Energy are at the forefront of integrating such advanced technologies into their energy portfolios.

The rise of nuclear energy stocks is reshaping the energy landscape and signalling a pivotal shift in how the world approaches power generation. With Big Tech leading the charge, nuclear energy is poised to play an increasingly critical role in meeting the dual goals of sustainability and innovation.

Opportunities For Investors

For market participants, the nuclear sector offers a compelling mix of growth and stability. As demand for clean energy surges, companies with strong nuclear portfolios are expected to continue outperforming, making them a strategic addition to long-term investment portfolios.

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[Steve]

Yeah I read that Constellation Energy secured a cool $1 billion contract to provide nuclear energy to U.S. govt. agencies.

I’ve also been reading up on a couple of other interesting nuclear stocks:

• BWX Technologies (BWXT): Supplies nuclear tech components and fuel to the U.S. govt., with growing services in Small Modular Reactors and advanced reactors.
• Southern Company: Runs 8 nuclear power units across three facilities and might benefit from the rising demand for nuclear energy to power data centers.

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[Christian Harris]

Thanks, Steve.

I’ll have a read up on those stocks you mentioned.

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