A handful of nuclear energy stocks have been melting up in recent quarters, thanks in part to big news coming from big tech.
Undoubtedly, the Magnificent Seven have been the AI top dogs leading the pack in the race. Over the next decade, more of their AI data centers will be coming online at a blistering rate. With that, a sustainable energy solution will be needed well before the shovels go into the ground. As big tech looks to modular reactors (SMRs), which, I believe, could be the new standard for powering next-generation AI data centers, the public’s confidence in nuclear power may just melt up to all-time highs.
As the AI tailwinds continue to make their way through the nuclear power plays in the final weeks of 2024, investors may wonder if there’s any gain left to be had. After all, one has to think that big-tech stars like Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOG), and Amazon (NASDAQ:AMZN) will not be the only firms looking to use nuclear energy to power their AI data center dreams.
In a prior piece, I highlighted two top uranium miners for investors looking to play the so-called nuclear renaissance, which began well before big tech announced their nuclear energy plans. And in this piece, we’ll look at two more nuclear energy plays with even more momentum riding behind them.
On the surface, they look somewhat expensive and overdue for a pullback. That said, the names seem impossible to ignore as more nuclear energy-powered AI data center deals may continue flowing in come the new year.
Key Points About This Article
- The AI data center nuclear energy boom has been heating up lately.
- Vistra and Oklo stand out as some of the most intriguing options for playing the powerhouses standing behind AI data centers of the future.
- If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.
Vistra
It’s an uneasy moment for shares of Vistra (NYSE:VST), which have cooled down for the month of October after posting a blistering 226% rally since the year began. The name stands out as one of the best performers in the S&P 500. And while only time will tell if there’s an encore for shareholders come the new year, I still think this cooling-off period in the stock could provide long-term investors with an entry point.
Vistra sees the opportunity to be in the AI data center scene, and it’s going full speed ahead. Undoubtedly, its Comanche Peak nuclear facility in Texas stands out as an absolute powerhouse perfect for powering tomorrow’s top-of-the-line AI data centers. As it looks to scale up its power capacity in opportunistic locations, it’s tough to name a better AI data center power play than Vistra.
Of course, a lot of the hype has been baked into the stock here. However, I’d argue there’s a good chance that VST stock is more like Nvidia (NASDAQ:NVDA) in that it won’t be so quick to surrender its recent gains.
RBC Capital Markets’ Shelby Tucker is just one of many analysts who think Vistra’s hot run isn’t over yet. Tucker recently hiked their price target on the name to $141 from $105, citing “meaningful tailwinds driving power demand giving no signs of abating,” Tucker is right. The AI tailwinds are in full force right now.
Oklo
It seems like OpenAI’s visionary leader, Sam Altman, saw the AI data center-powered nuclear boom coming from a mile away. When OKLO stock had its IPO earlier this year, a bright light shined on Altman’s sizeable position in the firm. Back then, it wasn’t yet apparent that the AI boom would soon spread to nuclear power firms.
Altman’s nuclear power bet, Oklo (NASDAQ:OKLO), has paid off in a big way of late. Shares of OKLO are on a blistering ascendency, rising more than 174% in the last month. The company’s Aurora powerhouse microreactor is a technologically advanced solution that may just set the blueprint for SMRs of the future.
Though Oklo isn’t yet profitable, the technologies it’s working on behind the scenes are undeniably exciting. So, if you believe in Altman as an investor and his vision of the AI-powered future, the name is worth a look despite its speculative nature and highly uncertain valuation.
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