S&P 500 nuclear power providers Constellation Energy and Vistra surged higher early Wednesday after PJM Interconnection's, the largest U.S. electrical grid operator, announced prices jumped more than 800% at its annual power market auction.
PJM, a major U.S. regional transmission organization (RTO), announced late Tuesday that 2025-2026 prices for power plants came in at $262.92 per megawatt-day, up 800% compared to last year's prices of $28.92. The auction secured 135,684 megawatts for June 1, 2025 through May 31, 2026.
The energy mix includes 48% from gas, 21% from nuclear, 18% from coal, 1% from solar, 1% from wind, 4% from hydro, 5% of demand response and 2% from other resources, according to PJM.
"The significantly higher prices in this auction confirm our concerns that the supply/demand balance is tightening across the RTO. The market is sending a price signal that should incent investment in resources," Chief Executive Manu Asthana said in a press release.
Vistra stock surged 14.7% to 79.17 during market trade on Wednesday. Fellow S&P 500 nuclear power stock Constellation Energy jumped 12.5%. Powell Industries, which provides equipment and systems that distribute and monitor electrical energy, rallied 37.5% Wednesday.
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Microsoft fell after reporting weak Azure cloud-computing growth late Tuesday, but eased fears of artificial intelligence (AI) spending fatigue. Meanwhile, Advanced Micro Devices spiked on its own earnings, while Nvidia also rebounded.
Meanwhile, Cathie Wood and her Ark Invest funds on Tuesday continued to build up their position in Oklo, the nuclear power startup backed by OpenAI head Sam Altman. Wood's Ark Autonomous Tech fund scooped 266,324 Oklo shares for an estimated $2.36 million, according to the fund's daily trading disclosures. Ark began building a position in Oklo in mid-July, buying shares repeatedly since then.
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Artificial intelligence — and the data centers needed to train the systems — are expected to boost energy demand throughout this decade. In the U.S., McKinsey & Co. projects that data center energy demand will grow around 10% every year through 2030.
Additionally, in 2022, the 2,700 U.S. data centers consumed around 4% of the country's total electricity generated, according to the International Energy Agency. The agency projects that by 2026, such centers will make up 6% of electricity use.
Many technology companies are investing in or partnering with nuclear power providers to ensure energy supplies for their data centers.
Vistra also announced late Tuesday the Nuclear Regulatory Commission approved its request to extend its Comanche Peak Nuclear Power Plant through 2053, an additional 20 years beyond its original licenses.
S&P 500 components Constellation Energy and Vistra have both been riding the AI energy wave in 2024, gaining 44% and 80%, respectively. However, both stocks have retreated from highs. Constellation Energy and Vistra report second-quarter earnings and revenue next week.
Please follow Kit Norton on X @KitNorton for more coverage.
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