At the beginning of the new year, Nuclear Power Stocks surged rapidly due to new trading activities, and Wall Street Analysts expect promising future growth bolstered by the AI boom. UBS Group analysts predict that Nuclear Power Stocks such as Constellation Energy, Vistra, and Talen Energy will see an average increase of 29% by 2025, due to a surge in AI-related electrical utilities demand.
At the beginning of the new year, driven by the emergence of new trades, Nuclear Power Stocks have surged. In today's after-hours trading, most Nuclear Power Concept Stocks continue to rise. $NuScale Power (SMR.US)$ Rising over 5%, $Talen Energy (TLN.US)$ 、$NexGen Energy (NXE.US)$ is up over 4%, $Energy Fuels (UUUU.US)$ 、 $Oklo Inc (OKLO.US)$ Increased by more than 3%.
Wall Street Analysts generally believe that with the boost from the AI boom, such stocks will see more growth in the coming year.
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$Constellation Energy (CEG.US)$ The stock price rose 4% last Friday, continuing the 8% increase from Thursday. Last week, the company announced a $1 billion agreement to provide Nuclear Power to several USA government agencies over the next 10 years, marking the largest Energy procurement in the history of the US General Services Administration.
Meanwhile, the company's competitors $Vistra Energy (VST.US)$ It also increased by 8.5%, having risen nearly 18% in the last two trading days.
Analysts suggest that these developments may signal more trading activities in the industry by 2025.
Morgan Stanley Analyst David Arcaro specifically mentioned in a report: " $Constellation Energy (CEG.US)$ The pricing appears very attractive, which could be Bullish Signals for future Trades."
He added that the premium for this contract is surprisingly attractive for a federal agency, providing a Bullish signal for future Nuclear Power deals with Technology companies, which may pay higher prices for their datacenter energy needs.
"We believe that considering sustainability goals and less budget pressure, Technology companies are generally willing to pay higher prices, and the customer base for these contracts may be broader than we expected," he added.
Other Analysts are also Bullish on the prospects of Nuclear Power Stocks in 2025, due to the surge in electrical demand related to the AI boom.
UBS Group Analyst William Appicelli wrote in a report last Friday: "In 2025, independent power companies will continue to benefit from strong demand and Energy/Capacity prices."
Appicelli reiterated his "Buy" rating on $Constellation Energy (CEG.US)$ 、 $Vistra Energy (VST.US)$ and $Talen Energy (TLN.US)$ and predicted an average increase of 29% for these Stocks in 2025.
However, it should be noted that this increase is slightly slower compared to the rapid growth expected in 2024; last year, $Vistra Energy (VST.US)$ The increase exceeded 263%, even surpassed.$NVIDIA (NVDA.US)$Meanwhile, with the surge in electrical utilities demand related to AI, $Talen Energy (TLN.US)$ and $Constellation Energy (CEG.US)$ The stock prices increased by 214.8% and 92.7% last year.
Overall, Wall Street believes that AI Datacenters require a massive amount of electrical power to run, and in the coming years, their electrical demand has already exceeded supply.
Torsten Sløk, Chief Economist of Apollo Global Asset Management, stated in a report last month that in order to meet demand, the USA must more than double its grid installed capacity by 2030.
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