Nvidia, the obvious bet for artificial intelligence investment, has seen a remarkable rise of 150% this year due to its dominant position in designing chips and software. However, some investors are looking to utility shares of companies owning nuclear power plants, such as Constellation Energy and Vistra, as unexpected alternatives given their significant stock performance.
Constellation Energy's shares skyrocketed after signing a deal on Sept. 20 to provide Microsoft's AI data centers with energy from the historical Three Mile Island nuclear power plant, now being renamed to Crane Clean Energy Center.
In the race for returns, Constellation Energy, Vistra, and Talen Energy have outperformed the S&P 500 significantly, with stock gains of over 100% so far this year, showcasing the market's pivot towards energy sources tied to AI demands.
This unusual crossover of AI and nuclear power signals an interesting trend where utility companies are not only enhancing their fortunes but also reshaping their narratives in the energy market, moving away from historical stigmas associated with nuclear power.
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