AI Empowers Nuclear Power Development, Vistra Soars Nearly 2x This Year, Outperforming NVIDIA

This year, the top performer of the S&P 500 index has changed. With the assistance of AI, energy company Vistra has surged nearly 193% year-to-date, more than double the 145% increase of Nvidia. Another nuclear energy company, Constellation Energy, which is collaborating with Microsoft, has also seen a significant rise of 118%.

Vistra Committed to Clean Energy

Due to the massive power demand of data centers driven by AI, there is an increasing need for clean and sustainable energy sources such as nuclear power. Vistra Corp. (stock code: VST) is an integrated retail electricity and power generation company based in Texas, USA, with a diversified energy portfolio including natural gas, nuclear, coal, solar, and battery storage facilities.

Vistra is committed to energy transformation, owning a large amount of zero-carbon assets and expanding its clean power generation capacity. The company aims to achieve a 60% reduction in greenhouse gas emissions by 2030 and net-zero carbon emissions by 2050. Its recent financial performance has been impressive, with many analysts giving it a "buy" rating, leading to a continuous rise in its stock price this year, with a year-to-date increase of 193%, surpassing Nvidia's 145%.

Microsoft Signs 20-Year Power Purchase Agreement with Constellation

According to Reuters, Microsoft has signed an agreement with nuclear energy company Constellation to help restart a unit of the Three Mile Island nuclear power plant. In 1979, one unit of the plant was shut down after experiencing a partial meltdown, making it one of the largest commercial nuclear accidents in US history.

Investment bank Jefferies estimates that as part of the 20-year fixed-price power purchase agreement, Microsoft may pay Constellation approximately $110 to $115 per megawatt-hour (MWh).

Constellation Energy (stock code: CEG) has also seen a significant 118% increase in its stock price this year.

Bill Gates Invests Heavily in Nuclear Power

Microsoft co-founder Bill Gates has long been involved in the energy industry, dedicating both effort and funds to it.

As an early billionaire, Bill Gates has been actively engaged in philanthropic work, focusing on issues such as climate change, wealth disparity, and diseases. In the recent Netflix documentary "What's Next? Bill Gates' Future," Gates discussed the importance of clean energy and founded TerraPower, which focuses on nuclear energy technology research and development.

The first nuclear power plant by TerraPower, named Natrium, officially broke ground in June in Wyoming. It uses sodium instead of traditional water to cool the reactor core and is expected to commence commercial operation as early as 2030. Gates believes this could be a key solution to future power needs and climate change mitigation.

While many countries view nuclear energy as a clean energy source, Taiwan still adheres to the ideology of a "nuclear-free homeland." The adequacy of future power supply for AI data centers and daily life needs is also a concern for many people.