On October 14th local time, $Alphabet-A (GOOGL.US)$ announced the signing of the world's first corporate agreement to purchase nuclear energy from multiple small modular reactors (SMRs) developed by Kairos Power. In response to this news, US nuclear power stocks performed strongly yesterday, among which $Energy Fuels (UUUU.US)$N/A.$Korea Electric Power (KEP.US)$rose by more than 3%,$NexGen Energy (NXE.US)$,$Constellation Energy (CEG.US)$Hua Hong Semi rose more than 2%.

Recently, more and more large technology companies are turning to nuclear power to meet the increasing electricity demand of their data centers.$NVIDIA (NVDA.US)$CEO Huang Renxun has also previously stated that nuclear power may be a viable option to meet the energy demands of AI. Therefore, nuclear power stocks are worth investors' attention.

The AI wave is driving the transformation of clean energy, with nuclear power becoming the new favorite of technology giants.

Local time on Monday, Google announced that it has signed an agreement with Kairos Power to purchase electricity from the latter's planned construction of 6-7 small modular nuclear reactors (SMRs), with a total capacity of 500 megawatts, to meet the growing demand for electrical utilities. This means Google will be the first company to commission a new nuclear power plant to supply power to its datacenters.

The transaction details show that the two parties have signed a power purchase agreement. Kairos plans to deliver the reactors between 2030 and 2035, and the construction site has not yet been determined.

According to media estimates, the expected generating capacity of 500 megawatts can meet the electricity needs of a medium-sized city or an AI data center campus.

Google is not the first technology giant to layout nuclear power, previously$Oracle (ORCL.US)$And.$Microsoft (MSFT.US)$also made corresponding layouts:

In September, Oracle's chairman Larry Ellison announced during the earnings conference call that the company is designing a datacenter that is expected to require over 1 gigawatt of power, to be powered by three small nuclear reactors.

Last month, Microsoft signed a 20-year agreement with Constellation Energy, the largest nuclear reactor operator in the USA, called the Three Mile Agreement, to restart the Three Mile nuclear power plant and sell all the generated electrical utilities to Microsoft.

In addition, NVIDIA's CEO previously stated in an interview that more and more datacenters require renewable energy, and nuclear energy is a very good choice.

Huang Renxun said: 'Nuclear power, as a form of energy, a sustainable energy, is excellent. But it won't be the only source of energy. We will need all sources of energy and balance the availability, cost, and long-term sustainability of energy.'

He hinted that Nvidia may be interested in nuclear power, which is part of its broader strategy to diversify energy sources for datacenters.

Nuclear power stocks have performed well, with the sector rising more than 49% since the beginning of the year.

As of the US stock market closing on October 14th, $Nuclear Power (LIST2583.US)$ The sector's increase was 49.06%, among its component stocks $Constellation Energy (CEG.US)$ Year-to-date, the increase has exceeded 130%. Earlier reports showed that Constellation Energy announced on September 20th that it signed a 20-year power purchase agreement with Microsoft, which will restart Unit 1 of Three Mile Island nuclear power plant.

In addition, among the S&P 500 component stocks, the best-performing stock this year is$Vistra Energy (VST.US)$as of the U.S. market close on October 14th, its year-to-date increase is 246.26%. Vistra Energy is an American energy company in Texas, with a business portfolio including subsidiaries TXU Energy and Luminant. TXU Energy is an electricity retail supplier, while Luminant is involved in nuclear power generation, thermal power generation, and wind power generation businesses.

How to seize the investment opportunities in nuclear power stocks?

Investors can continue to pay attention to $Nuclear Power (LIST2583.US)$ Investment opportunities in sector-related individual stocks, such as $Constellation Energy (CEG.US)$N/A.$BWX Technologies (BWXT.US)$and many more.

Sachem Cove Partners' Chief Investment Officer Michael Alkin predicts that with the increasing demand for electricity from data centers and AI technology, as well as the re-commissioning of some decommissioned nuclear power plants, the demand for uranium may accelerate further. Global X analyst Zhu states that as these utilities purchase nuclear fuel, uranium mining companies may benefit in the long run. Specifically, investors can focus on $Uranium (LIST2430.US)$ sector-related individual stocks, as well as $VanEck Uranium and Nuclear ETF (NLR.US)$Please use your Futubull account to access the feature.$Global X Uranium ETF (URA.US)$ Wait for the ETF.

In addition, Wall Street analysts believe that there is upside potential for other US utility stocks. Guggenheim analyst Shahriar Pourreza has predicted: "We believe that the US will be home to a large number of data centers."$Ameren (AEE.US)$,$American Electric Power (AEP.US)$,$Duke Energy (DUK.US)$,$Entergy (ETR.US)$,$Evergy (EVRG.US)$,$Exelon (EXC.US)$And.$FirstEnergy (FE.US)$Utility companies like this are considered "the most reasonably valued relative to their potential upside."

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Editor/Jeffy