Constellation Energy Corp (CEG) shares rallied 5.07% during intraday trading on Thursday, outperforming the broader market amid a surge in optimism surrounding the nuclear power industry and a favorable analyst rating.
The nuclear power operator's stock surge was fueled by multiple positive factors. First, renewed interest in nuclear power generation from tech giants like Amazon and Microsoft, seeking clean energy sources to power their data centers, has raised prospects for growth in the nuclear power sector. South Carolina power provider Santee Cooper's plan to seek buyers to restart construction of two nuclear reactors further boosted investor sentiment towards nuclear-related stocks.
Additionally, reports surfaced that Microsoft has inked a supply agreement with Constellation Energy, enabling the company to revive the Three Mile Island nuclear plant. This deal signifies increased business opportunities and potential revenue streams for Constellation Energy, underpinning the stock's rally.
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