Big Tech Companies Seeking Nuclear Power... "Uranium and Utility Stocks Will Continue to Rise"

Wall Street Raises Target Prices for Nuclear Power Companies

As big tech companies invest in nuclear power plants as a solution to AI power shortages, there is an analysis that nuclear power and uranium-related stocks could continue to rise steadily.

According to MarketWatch on the 15th (local time), as big tech's AI-driven nuclear power investments accelerate, Wall Street is raising target prices for nuclear power companies one after another. Previously, US big tech companies such as Microsoft (MS), Amazon, and Oracle signed power contracts with nuclear power companies, and Google also announced on the 14th that it signed a power purchase agreement with the US small modular reactor (SMR) startup ‘Kairos Power’.

Morgan Stanley raised the target prices of major US nuclear power-related companies. It raised the target prices of Constellation Energy, the number one US nuclear power company, and Vista Energy, a combined energy company, from $233 and $110 to $313 and $132, respectively. This means that the stocks of the two companies have potential to rise by 17.7% and 175.9% compared to their closing prices. The stock price of Public Service Enterprise Group was also raised from $83 to $95.

Morgan Stanley also analyzed that as the US has turned back to a nuclear power policy, previously closed nuclear power plants will be restarted, which could be a positive factor for nuclear power component manufacturers such as BWX Technologies.

Morningstar forecasted that utility companies would be promising due to the growth of AI data centers. Nisos, WEC Energy Group, and Duke Energy are representative examples. Travis Miller, a utility sector analyst at Morningstar, explained, “With increasing energy demand, utility companies can raise rates, which will benefit shareholders.”

MarketWatch also stated that uranium mining company stocks could rise accordingly. Despite the rise of nuclear energy due to the surge in power demand from AI data centers, global uranium supply is expected to fall short of demand. The reasons cited include production cuts in Kazakhstan, the world’s largest uranium producer, due to a shortage of sulfuric acid used in mining, and export restrictions on Russian enriched uranium.