Constellation Energy (CEG) shares rose 4.5 percent to $215.30, reflecting a decisive shift in investor positioning toward nuclear operators as the power source of choice for data center buildouts.
The catalyst is straightforward: AI data centers demand massive, uninterrupted baseload power that solar and wind cannot reliably deliver. Nuclear is now the only zero-carbon alternative that scales. CEG, the largest U.S. nuclear operator, is positioned to monetize this gap through direct power sales agreements with tech companies—locking in long-term, high-margin contracts rather than relying on commodity wholesale power markets.
NuScale Power (SMR) gained 3.2 percent to $9.85 on the strength of its small modular reactor deployments targeting industrial campuses and potential data center sites. Compact reactors reduce transmission losses and offer localized reliability—a competitive advantage for operators willing to deploy capital-intensive solutions.
BWX Technologies (BWXT) rose 2.8 percent. As a critical supplier of nuclear components and fuel, BWXT benefits from both new SMR deployments and extended operating cycles for existing large reactors. Morgan Stanley initiated coverage with an Overweight rating, citing its centrality to the nuclear supply chain.
The valuation inflection is real. Traditional utilities trade on dividend yields and regulated returns. CEG, NuScale, and BWXT now offer contract-driven revenue growth—the same compounding narrative that lifted data center REITs and power infrastructure plays. Investors should track: (1) signed power purchase agreements between CEG and major cloud providers, (2) regulatory milestones for NuScale's SMR licensing, and (3) BWXT's order backlog growth in nuclear fuel and components. These are the catalysts that will drive multiples higher.
