Original Report: www.nytimes.com(full story)
- Nuclear power companies are emerging as unexpected beneficiaries in the A.I. landscape.
- Constellation Energy and Vistra are leading the charge, demonstrating significant stock performance.
If you’re contemplating the future prospects of artificial intelligence, Nvidia stands out as the clear frontrunner. Known for its cutting-edge chips and software that power A.I., Nvidia’s stock has soared by 144% this year. Yet, an intriguing alternative has emerged: utility shares from companies operating nuclear power plants.
This September, two notable players—Constellation Energy and Vistra—have achieved remarkable over 30% returns within the S&P 500. Constellation Energy, the leading nuclear operator in the U.S., witnessed a surge after signing a September 20 agreement with Microsoft to supply energy for its A.I. data centers from the historic Three Mile Island plant in Pennsylvania.
For those familiar with nuclear history, Three Mile Island is infamous for the worst nuclear disaster in U.S. history. In a bid to revitalize its image and meet A.I. energy demands, Constellation plans to reopen part of the facility, now rebranded as the Crane Clean Energy Center.
Vistra, too, is in discussions with various A.I. entities, mirroring earlier agreements involving Talen Energy, which supplied Amazon with electricity sourced from the Susquehanna Steam Electric Station, partly owned by Talen.
Remarkable Stock Performance:
- Constellation Energy: 121%
- Vistra: 208%
- Talen Energy: 185%
While other utility companies have also seen gains from the A.I. sector, none have matched the extraordinary performance of these three.
