Nuclear Power Stocks Soar as Prices Jump Ninefold on Largest U.S. Power Grid

Key Takeaways

• Nuclear power stocks soared on Wednesday after the largest U.S. power grid operator said prices in its power market auction had risen ninefold year over year.

• Constellation Energy, which operates the country’s largest collection of nuclear power plants, saw its shares jump more than 12%, while Vistra shares rose nearly 15%.

• Both companies are expected to release second-quarter earnings next week.

Nuclear power stocks soared on Wednesday after the largest U.S. power grid operator said prices in its power market auction had increased ninefold year over year.

PJM Interconnection, a regional transmission organization (RTO) that operates the electric grid in 13 Northeast states, said Tuesday that 2025-2026 prices for power plants were $262.92 per megawatt-day, compared to $28.92 a year ago. Just over a fifth of the energy mix will come from nuclear energy.

Constellation Energy (CEG), which operates the country’s largest collection of nuclear power plants, saw its shares jump more than 12% on Wednesday following the news, while shares of rival Vistra (VST) rose almost 15%.

With Wednesday’s gains, Constellation shares have risen more than 62% since the beginning of the year, while Vistra shares have doubled over the same period. Both companies are expected to release second-quarter earnings results next week.

Data centers help increase demand for electricity

The price rise comes as factories retire and demand for electricity increases, in part thanks to data centers to support artificial intelligence (AI).

Yesterday, chipmaker Advanced Micro Devices (OMG) reported that data center revenue more than doubled to a quarterly record as demand for chips to power data centers that support AI increased.

The International Energy Agency (IEA) projected earlier this year that electricity consumption from data centers, AI and the cryptocurrency sector could double by 2026.

Read the original article at Investopedia.