Nvidia Corp (NASDAQ:NVDA) CEO Jensen Huang is making waves with his endorsement of nuclear energy to meet the surging electricity demands posed by artificial intelligence (AI).
AI's energy consumption could rival that of a small country within just three years. Speaking to Bloomberg, Huang called nuclear power "a wonderful way forward" for sustaining AI data centers, emphasizing the need for diverse, sustainable energy sources.
Huang's comments come on the heels of Microsoft Corp's (NASDAQ:MSFT) decision to reopen the Three Mile Island nuclear station, a significant step toward addressing the energy demands created by the expansion of AI infrastructure.
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AI, particularly in massive data centers run by tech giants like Google's parent Alphabet Inc (NASDAQ:GOOGL) (NASDAQ:GOOG) and Meta Platforms Inc (NASDAQ:META), is anticipated to require as much power by 2027 as entire nations such as Sweden or the Netherlands.
3 Stocks To Watch: With nuclear energy set to play a pivotal role in this transition, we dug out three stocks that could be poised to benefit from the nuclear renaissance:
- Constellation Energy Corp (NASDAQ:CEG)
With over 33,000 megawatts of generation capacity, including nuclear, CEG is leading the charge. Shares have surged 125.55% YTD after plans to restart the Three Mile Island plant were announced. Accordingly, Constellation is to Unit 1 of the nuclear plant to provide electricity to power Microsoft's data centers. The 20-year deal is part of Microsoft's effort to reduce its carbon footprint - NuScale Power Corp (NYSE:SMR)
Specializing in small modular reactors (SMRs), NuScale offers an affordable, scalable solution for nuclear power. Its shares are up nearly 270% YTD, benefiting from growing interest in compact nuclear energy options. - Centrus Energy Corp (NYSE:LEU)
Centrus, a key supplier of nuclear fuel, recently inked a long-term deal with Korea Hydro & Nuclear Power. This strategic move has bolstered its stock by 60% over the past three weeks.
As AI's energy demands continue to surge, Huang's advocacy for nuclear energy could further propel the sector's growth, making stocks like Constellation Energy, NuScale Power, and Centrus Energy attractive opportunities for investors.
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