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Shares of Vistra Energy (NYSE: VST) are up 16%, or by $24.60, in premarket.
All after Meta unveiled agreements to secure about 6.6 GW of nuclear power by 2035 for its data centers. One of those deals was with Vistra Energy, which will provide electricity from three existing nuclear power plants.
“At Meta, we are investing in nuclear energy because it provides clean, reliable power that is essential for advancing our AI ambitions and strengthening American leadership in energy innovation. By supporting nuclear power, we ensure that our operations – and the communities we serve – benefit from energy solutions that drive both technological progress and economic growth,” said Urvi Parekh, Head of Global Energy at Meta, as quoted in a press release.
Fueling further growth, we have to remember that by 2030, power demand is expected to triple thanks to AI. And, according to Mizuho analysts, “The demand from data centers will reach 400 terawatt hours, or 50 gigawatts annually, representing about 9% of total U.S. electricity demand by the end of the decade. About 30% of current data center demand is located in the Mid-Atlantic, followed by Texas, home to 13%.”
So, we could easily see many more energy deals just like the one sending VST higher today.
Oklo
Oklo (NYSE: OKLO) is up $17.65, or 18%, in premarket thanks to an energy deal with Meta, too.
The two will advance Oklo’s plans to develop a 1.2 GW power campus in Pike County, Ohio, to support Meta’s data centers. “The agreement provides a mechanism for Meta to prepay for power and provide funding to advance project certainty for Oklo’s Aurora powerhouse deployment,” added the press release.
Broadcom
After dropping from about $413 to a low of $322.48, Broadcom (NASDAQ: AVGO) is finding support from analysts at Bernstein. The firm just reiterated an outperform rating on the stock thanks to its AI dominance. The firm also has a price target of $475 a share.
Analysts at Cantor Fitzgerald also believe AVGO is “ripe for outperformance” this year.
“The AI trade has obviously been a key debate area lately, with the AI levered group pressured since early November as we entered a more risk-off environment with AI bubble fears at the forefront,” Cantor Fitzgerald said, as quoted by Seeking Alpha. “We continue to believe that these fears are overdone and shortsightedly missing the forest for the trees as we remain at the cusp of a massive AI- related demand inflection.”
