Big tech are all in on nuclear but so is this surprising sector!

Amazon…Alphabet…Oracle…Microsoft…Nvidia… These five tech superstars, some of whom are part of the Magnificent Seven, together worth almost $11 trillion have in just the last month all backed nuclear power for their AI data centre ambitions.

Whether it’s through huge investments, or agreements signed with utility companies, Big Tech is fully backing the Nuclear Renaissance!

After all, it’s the perfect energy source to handle powerful AI and energy-intensive data centres.

These recent huge developments have ignited a boom under nuclear-related stocks – which I believe is only the beginning.

While big tech’s foray into nuclear has taken up all the headlines, there’s been other interesting nuclear developments that may have slipped past the radar.

Here’s what I’m talking about…

World’s biggest banks pledge support for nuclear power

Last month, banks and funds totalling $14 trillion in assets signed an unprecedented statement in support of nuclear power.

Fourteen of the world’s largest financial institutions, including US giants Goldman Sachs, Morgan Stanley, and Bank of America, announced they would throw their support behind an effort to triple the world’s nuclear energy capacity by 2050.

Although the banks have not said what steps they will take to help achieve this goal, their involvement will be crucial in helping meet the emissions target laid out in last year’s COP28 climate conference. More importantly, these funds will help revive the nuclear energy sector.

In recent years, many large financial institutions refused to finance nuclear projects due to negative perceptions surrounding the Fukushima Disaster. But these banks have now made clear they understand nuclear is not only good for the planet, but also potentially good for the bottom line as well.

So,it’s a huge step in the right direction when financial institutions like these recognise nuclear potential. This move will surely unlock finance for a new wave of power plants.

Nuclear has the full support of the US in its critical fight against climate change

Following the string of Big Tech nuclear announcements, on 18 October, the US opened applications for up to $900 million in funding to support the deployment of small nuclear reactors.

$100 million will go towards additional SMR (small modular reactor) deployments by addressing gaps that have hindered the domestic nuclear industry in areas such as design, licensing, supplier development, and site preparation.

The rest of the money will go to milestone-based awards for support of first mover teams of utility, reactor vendor, constructor, end users and others.

On the same day, the US Department of Energy, rolled out initial contracts to four companies that aim to produce highly enriched uranium fuel for an expected wave of high-tech reactors.

This move aims to reduce the reliance on Russian high-assay low-enriched uranium fuel (HALEU). After all, Russia is currently the only country that makes HALEU. And supply from Russia is no longer viable after the US introduced a law to ban uranium shipments from Russia fully by 2028.

According to the Energy Department,  “All contracts will last for up to 10 years and each awardee receives a minimum contract of $2 million, with up to $2.7 billion available for these services, subject to the availability of appropriations.”

Centrus Energy – one of our top South African Investor nuclear picks – is one of the four companies that received a contract to produce HALEU to fuel a variety of small modular reactors planned to be built starting around 2030. Centrus’ shares have been on a tear rising 101%!

The other nuclear companies are Urenco USA, Orano USA, and a company called General Matter.

The bottom line is the Nuclear Renaissance has hit critical mass. There’s no halting this momentum now. and I believe it will set up huge profit-opportunities for investors. If you want in on my two hottest nuclear and AI plays then make sure you are signed up to South African Investor.