Atomic Shift: The Future of Finance Revealed

Tech Giants Go Nuclear

The world’s most influential tech companies are making a bold bet on nuclear power. In a surprising move, Amazon, Google, and Microsoft are investing heavily in atomic energy to fuel their data centers and artificial intelligence ambitions while meeting their clean energy goals.

A New Era of Nuclear Funding

Amazon has signed a deal with Dominion Energy to explore building a small modular nuclear reactor near the North Anna station. The company will also invest in reactor developer X-energy and collaborate with regional utility consortium Energy Northwest. Just days earlier, Google announced an agreement to purchase power generated from multiple small modular reactors to be built by nuclear energy startup Kairos Power. Microsoft, meanwhile, has teamed up with Constellation Energy to revive a unit of the Three Mile Island nuclear plant in Pennsylvania.

The Power Hungry World of AI

Artificial intelligence models require enormous amounts of electricity to function. A single text response from these models can consume enough energy to power a 10-watt LED bulb for an hour. In contrast, a typical Google search uses electricity equivalent to powering a 10-watt LED bulb for about two minutes. Nuclear energy appears more attractive than wind or solar power due to its ability to generate a large, stable, and consistently available supply of power on demand.

A Nuclear Renaissance

The recent nuclear investments by tech firms have breathed new life into the sector. Nuclear power plant developers Oklo and NuScale Power saw their stocks surge over 40% following Amazon’s announcement. Established independent power producers with nuclear footprints, such as Vistra, Constellation Energy, and Dominion Energy, also saw their shares rise. Even uranium-related companies like Centrus Energy, Energy Fuels, and Denison Mines joined the rally.

Market Updates

Today, Taiwan Semiconductor soared after AI demand boosted its outlook. Expedia gained after reports emerged of a potential takeover by Uber. Netflix is set to release its Q3 results, with subscriber additions and ad-tier growth in focus. In other news, SpaceX is suing a California regulator, claiming political bias against its launches. Deere will cut nearly 300 more jobs in Iowa as the farm economy weakens.

Global Markets

Asian markets were down, with Japan, Hong Kong, China, and India all losing ground. In Europe, London, Paris, and Frankfurt were up at midday. Futures indicate a flat Dow, with the S&P and Nasdaq expected to open higher. Crude oil is up 0.3% at $70.62, while gold is up 0.3% to $2,699.30. Bitcoin, however, fell 0.9% to $67,139.69. The ten-year Treasury yield rose 2 bps to 4.04%.

Economic Calendar

Today’s economic calendar features jobless claims, retail sales, and the Philly Fed Business Outlook. Other key events include industrial production, business inventories, and the housing market index. The EIA will also release its natural gas and petroleum inventory reports.

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