Barbara Kollmeyer of MarketWatch reports that AI’s rising energy needs have pushed the world’s tech giants to explore nuclear power. Kollmeyer writes:
If there’s one thing that the investment world is quickly learning about artificial intelligence is that it has a ravenous desire for electricity and there still aren’t enough sources out there to fuel it.
One potential solution that many big technology industry leaders have been exploring is the idea of sourcing power from nuclear energy. Alphabet’s Google and Amazon in October each announced plans to power AI needs with mini-nuclear plants, with Microsoft inking a deal with Constellation Energy for nuclear power ahead of them.
And investors impressed by gains in the shares of Nvidia or Broadcom this year, should look at companies in that nuclear sector. NuScale stock has soared 538% year to date, Oklo, backed by OpenAI CEO Sam Altman, is up 123% so far this year and, Nano Nuclear, which just listed this year, has gained 99%.
Investors should tread carefully with this AI theme though, says our call of the day from Josh Wolfe, the co-founder of New York venture capital firm Lux Capital, which invests in emerging science and technology. […]
Wolfe talked about “crazy run ups on expectations and hype” by modular reactors. “They are amazing technology and in the short term have been amazing stocks, but I do not believe they are good businesses,” he said, adding that investors have just seen “pledges and paperwork,” and economically disappointment looms.
His preference in the sector: “large scale nuclear (‘elemental energy‘’ + abundant nat gas (esp in the Permian) = way to go.” […]
Goldman Sachs reported last month that hedge funds poured money into nuclear-power producers in the third quarter, to get ahead of an expected surge in electricity demand from AI. Vistra and Talen Energy were among their VIP picks.
Read more here.
