NuScale Power's stock soared 7.26% in the intraday trading session on Wednesday, as investors piled into nuclear energy stocks. The rally came after concerns emerged over the potential impact of Chinese AI start-up DeepSeek on the projected surge in U.S. electricity demand and tech spending.
The nuclear energy sector saw a broad-based rally, with NANO Nuclear Energy rising 10%, Oklo up 4%, Energy Fuels, Lightbridge, and Centrus adding 3%, and Uranium, Vistra Energy, and Entergy climbing 2%. This surge in nuclear stocks was driven by investors re-evaluating the potential demand for electricity from data centers powering AI technologies.
Power producers were among the biggest winners in the S&P 500 last year, as expectations of ballooning demand from energy-intensive data centers to scale AI operations fueled optimism. However, the emergence of DeepSeek's new AI technology has cast doubt on these projections, leading investors to recalibrate their positions in the nuclear energy space.
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