Nuclear Stocks Surge as AI Power Demand Creates $10 Trillion Opportunity
Bank of America report highlights nuclear energy's critical role in powering the artificial intelligence industry, fueling a rally in the sector.
The nuclear energy sector is experiencing a significant surge, with stocks like Oklo (OKLO) and NuScale Power (SMR) posting substantial gains as investors bet on the industry's crucial role in meeting the voracious energy demands of artificial intelligence. The rally intensified after a , a projection that has captured the attention of Wall Street.
At the heart of this renewed interest is the exponential growth of AI, which requires massive amounts of electricity for its data centers. The Bank of America report underscores this, projecting that by 2026, the energy consumption of global data centers could exceed the total energy usage of Japan. This has led analysts to identify to support the continued expansion of AI technologies, thanks to its reliability and low carbon emissions.
The market has responded enthusiastically to this narrative. Oklo, a developer of small advanced fission power plants, saw its stock soar by as much as 57.7%, reflecting the high investor confidence in the sector's growth potential. NuScale Power, another key player in the small modular reactor (SMR) space, also experienced a significant uptick. This bullish sentiment is built on the premise that only nuclear energy can provide the consistent, carbon-free baseload power that .
Bank of America's analysis further bolsters the investment thesis, estimating that global nuclear capacity will need to triple by 2050, requiring over $3 trillion in investments over the next quarter-century. The report specifically points to SMRs as “one of the most consequential energy technologies for the next 25 years,” citing their potential for faster and more cost-effective deployment compared to traditional large-scale nuclear plants. As the AI revolution continues to accelerate, the nuclear industry appears well-positioned to be a primary beneficiary, transforming a once-overlooked energy source into a cornerstone of the digital future.