Constellation Energy Corp's stock surged 5.05% in pre-market trading on Tuesday, outperforming the broader market. The rally was driven by a renewed investor optimism surrounding the nuclear energy sector's prospects in meeting the computational power demands of the booming artificial intelligence (AI) industry.

Overnight trading saw nuclear stocks stage a remarkable rebound, with companies like Oklo Inc., NuScale Power, NANO Nuclear Energy, and Vistra Energy witnessing significant gains. This upswing came after AI-related tech stocks like Nvidia and Broadcom bounced back, buoyed by reports that Chinese AI firm DeepSeek's advancements highlight the growing demand for Nvidia's chips in the Chinese market.

The nuclear power industry has been vying to position itself as the preferred energy source for the AI sector's rapidly increasing computational demands. Monday's steep sell-off, triggered by concerns over DeepSeek's perceived threat to the AI narrative, had initially battered nuclear stocks. However, the sector swiftly regained ground as investors reassessed the potential for nuclear power to meet the energy needs of AI data centers.