LONDON (IT BOLTWISE) – The enthusiasm for artificial intelligence has driven up share prices in various industries, with energy suppliers in particular in focus. Investors are now paying three times more for AI-exposed energy stocks compared to two years ago. Despite recent share price declines, valuations of companies like Oklo and NuScale Power remain in the billions.
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The recent enthusiasm for artificial intelligence has sent stock markets into turmoil, with energy suppliers in particular benefiting from the development. Investors are willing to pay significantly higher prices for shares of companies active in the field of AI-powered energy supply. This is largely due to the enormous energy requirements required to train and operate AI models.
The development is particularly striking for the shares of nuclear technology companies, which achieve high valuations despite little or no sales. Companies like Oklo and NuScale Power have seen share prices fall in recent weeks, but their market capitalization remains in the billions. This development reminds some investors of the dot-com bubble, while others point out that the current wave of AI is being funded by highly profitable technology companies whose valuations are not as stretched as they were back then.
The demand for reliable energy sources has led to a race to provide the electricity needed for AI data centers. Nuclear energy has attracted particular interest due to its efficiency and low carbon footprint. Major technology companies such as Microsoft, Amazon, Alphabet and Meta have signed multi-billion dollar contracts with nuclear power plant operators, causing those operators’ share prices to rise.
But it’s not just established companies that benefit. Nuclear technology startups that do not yet have operational generators or regulatory approvals are also attracting investment. NuScale Power’s share price has doubled since the beginning of the year, even though the company is not expected to be profitable until 2029. The situation is similar with Oklo, whose market capitalization has risen to over $25 billion this year despite a lack of sales.
These developments show that share prices in the energy sector are strongly driven by the current AI euphoria. Last week’s volatility, with some stocks posting double-digit losses, highlights how closely prices depend on market sentiment. Nevertheless, interest in AI-powered energy supply remains high, indicating continued demand for innovative solutions in this area.
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