FX168 Financial News (North America) reported that on Monday (January 6), with new trades continuously emerging, nuclear energy Stocks performed strongly at the beginning of 2025, and Analysts expect more growth opportunities in the future. #2025 Market Outlook#

The stock price of Constellation Energy rose over 10% last week.

The driving factor behind this surge is the company's announcement of a 10-year deal worth $1 billion, providing nuclear energy to more than a dozen Institutions in the USA. This deal is known as the largest energy procurement agreement in the history of the General Services Administration (GSA) of the USA.

Constellation Energy's competitor, Vistra Corp, also increased by 8.5% last Friday.

Analyst: More nuclear energy deals may be on the way.

Although the scale of Constellation Energy's deal is relatively small, Analysts believe it may signal that the nuclear energy Industry will see more trading activities in 2025.

Morgan Stanley Analyst David Arcaro noted in a report last Thursday: "The pricing of this deal is very attractive, which may create positive expectations for future trades."

Arcaro also stated that this contract provides federal agencies with unexpected price premiums, which could be a positive signal for future nuclear energy trades with Technology companies. Technology companies are usually willing to pay a higher price for energy supply for Datacenters.

We believe that Technology companies, due to their sustainability goals and lower budget pressures, are generally willing to pay higher Energy prices, so the customer base for these contracts may be broader than we previously expected,” Arcaro wrote in the report.

AI drives a surge in Electrical Utilities demand, benefiting nuclear energy Stocks.

Other Analysts are also optimistic about the performance of nuclear energy Stocks in 2025, believing that the surge in Electrical Utilities demand brought about by the AI frenzy will continue to drive these Stocks up.

UBS Group Analyst William Appicelli stated in a report last Friday: "Independent Electrical Utilities companies should continue to benefit from strong Electrical Utilities demand and Energy/capacity prices in 2025."

Appicelli reiterated a Buy rating on Constellation Energy, Vistra CORP, and Talen Energy, predicting an average increase of 29% for these Stocks in 2025.

This increase represents a slight slowdown compared to the explosive growth in 2024. In 2024, Vistra CORP's Stock price rose by more than 300%, exceeding NVIDIA's remarkable performance; Talen Energy and Constellation Energy increased by 200% and 100% respectively, mainly benefiting from the surge in AI-related Electrical Utilities demand.

Surge in AI Datacenter Electrical Utilities demand.

The operation of AI Datacenters requires a large amount of Electrical Utilities, and their Electrical Utilities demand is expected to exceed supply in the coming years. To meet the demand, the USA must double its grid capacity by 2030, said Torsten Sløk, Chief Economist at Apollo Global Management, in a report last month.

Sløk pointed out that as AI continues to develop, the power consumption of Datacenters will keep rising, which will pose significant challenges to Energy infrastructure, while also providing long-term growth opportunities for clean energy companies such as nuclear energy.

Conclusion

Overall, the nuclear energy Industry is ushering in new development opportunities. With the increasing demand for clean energy from government Institutions, Technology companies, and Datacenters, nuclear energy companies like Constellation Energy and Vistra CORP are expected to continue benefiting in the coming years. Analysts unanimously believe that this trend will drive nuclear energy Stocks upward in 2025, becoming an important Sector of interest for investors.