Story
X-Energy Stock Jumps on Report of $200M Federal Program to Power AI with Nuclear Energy
Summary
Shares of the nuclear reactor developer gained after-hours following a Bloomberg report it will join a Department of Energy initiative alongside Microsoft and Nvidia to meet the power demands of AI data centers.
X-Energy Inc. shares rallied in after-hours trading on Tuesday following a report that the company will participate in a $200 million U.S. government initiative to develop nuclear reactors to power artificial intelligence data centers. The program reportedly includes technology giants Microsoft and Nvidia, linking the nuclear developer directly to the explosive growth in AI infrastructure.
The Nuclear-AI Initiative
According to a report from Bloomberg, X-Energy is set to join a federal program spearheaded by the U.S. Department of Energy. The initiative's goal is to accelerate the deployment of advanced nuclear reactors to satisfy the immense and growing electricity demand from AI operations.
The project carries significant weight due to its high-profile participants. Alongside X-Energy, the initiative reportedly includes:
- Fellow advanced reactor developer Oklo
- AI industry leaders Microsoft and Nvidia
- U.S. Department of Energy national laboratories
- Leading academic institutions
A formal announcement from the Department of Energy was expected, according to the report.
AdMarket Reaction
X-Energy stock gained 4.8% in after-hours trading on the news. Sector peer Oklo also saw its shares move sharply higher, indicating broad investor enthusiasm for companies named in the report. The rally was notable as it occurred while broader market sentiment was muted, with Wall Street futures drifting lower Tuesday evening.
Strategic Implications
The inclusion in this high-profile federal program is a significant development for X-Energy and its Xe-100 small modular reactor (SMR) pipeline. Participation alongside major power consumers like Microsoft and Nvidia provides a strong signal of commercial demand for advanced nuclear technology.
Wall Street analysts have previously pointed to government support and partnerships with the AI industry as a major long-term catalyst, or "structural tailwind," for the advanced nuclear sector. This initiative appears to directly confirm that thesis, positioning X-Energy as a key potential beneficiary of the build-out of AI infrastructure.
Read next
More on Stocks
Six Flags Stock Surges After Activist Jana Partners Pushes for Company Sale
Shares of the amusement park operator rose more than 5% in after-hours trading after a report revealed that activist hedge fund Jana Partners is demanding the board explore a potential sale of the company.
Australian Regulator Blocks IAG's Proposed Takeover of RAC Insurance
The Australian Competition and Consumer Commission (ACCC) has opposed Insurance Australia Group's (IAG) acquisition of RAC Insurance, citing significant concerns that the deal would substantially reduce competition in Western Australia's insurance market.
Australian Manufacturing Enters Contraction as Services Growth Falters
Flash PMI data from S&P Global shows Australia's manufacturing sector contracted in September, while services activity slowed sharply, indicating that rising interest rates and high inflation are beginning to weigh on the economy.
U.S. Stock Futures Muted as Geopolitical Talks Offset AI Rally
U.S. stock index futures showed little movement in overnight trading as markets weighed reports of diplomatic talks between the U.S. and Iran against continued strength in AI-driven technology stocks.