AI Power Plays: The Stock Market's New Hot Spot
The AI craze has taken Wall Street by storm, with investors scrambling to find the next big thing. Some see parallels to the Dotcom Boom, while others argue that the current AI surge is backed by solid profits from tech giants. The AI gold rush has boosted the fortunes of both established and new companies, with some seeing their stock prices skyrocket.
A Closer Look at AI-Driven Companies
To get a clearer picture, a recent analysis looked at 75 companies that stand to benefit from AI. These companies were grouped into five categories:
- Cloud computing
- Semiconductors
- Software
- Power providers
- Networking, storage, and cooling equipment
The study found that power providers have seen the most dramatic rise in their stock prices.
Stock Price Surge
The median price-to-sales ratio for power providers has nearly tripled from 1.52 in 2023 to 4.53 in 2025. This is a bigger jump than any other category. In fact, power providers have more unprofitable companies than any other group, with five out of 14 expected to report losses this year.
The Demand for Power
The demand for AI has led to a surge in data centers, which in turn has created a huge demand for electricity. Tech companies are turning to nuclear energy for its efficiency and low carbon footprint. Major players like Microsoft, Amazon, Alphabet, and Meta have signed multi-billion dollar deals with nuclear power plant operators, sending their stock prices soaring.
Startups Benefiting from the AI Boom
But it's not just established companies that are benefiting. Startups in the nuclear tech space have also seen their stock prices surge, even if they don't have any operational generators or regulatory approvals. For example:
- NuScale Power's stock doubled in value.
- Oklo's market capitalization increased by 720% from the start of the year. Despite having no revenue, Oklo's market cap peaked at $25.7 billion.
Market Volatility
The volatility of these stocks was on full display last week. Established companies like Constellation Energy, Vistra, and GE Vernova saw their stock prices drop by more than 10% before rebounding. The upstarts, NuScale, Oklo, and Fermi, saw even bigger drops of more than 25% before finishing the week with losses in the low- to mid-teens.
