The Uranium stocks have popped as significant tech companies such as Amazon (AMZN, Financial), Microsoft (MSFT, Financial), and Alphabet (GOOGL, Financial) deepen their nuclear power bets. It started with Microsoft’s power purchase agreement made last month that will revamp the Three Mile Island Nuclear Station for AI’s burgeoning growth.
This week, we saw the spectrum shifting a gear higher as a giant such as Amazon revealed partnerships with Energy Northwest, Dominion Energy, and X-energy to pursue Small Modular Reactors (SMRs), which have thus brightened up investor confidence in the sector. On the same day, Google’s parent company Alphabet was revealed to be investing $10 million in Kairos Power to develop the initial 500MW of advanced small modular reactor facilities, all in a sign of a sector switching to more compact and environmentally friendly power generation technology.
The market confronting them responded sharply and violently. New interesting information about uranium mining and nuclear energy Company Cameco (CCJ, Financial) rocketed 8.2%, Denison Mines (DNN, Financial) and Clean Energy Fuels (CLNE, Financial) went 14.7 % per share higher and 17% higher, respectively. NuScale Power (SMR, Financial, which was revealed earlier had a large stake in the SMR market, rocketed up by a magnificent 31.6% and reached its highest point ever.
The enthusiasm for nuclear power is underpinned by the IAEA’s latest forecasts on nuclear capability, which indicate a probability of a 2.5-fold increase in capacity by 2050. This projection is in line with the rising global push to escalate nuclear deployment as part of the plan to realize net-zero carbon emissions.
Closely following this, tech giants set the pace, investing in nuclear power. They did not merely ignite the upturn of relevant stocks, but they also indicated nuclear energy as a crucial factor that could shape the future energy scenario, generating a cleaner and more sustainable energy mix.
This article first appeared on GuruFocus.
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