Nuclear Startups Attract Big Investment Despite Bubble Warnings
Nuclear startups are attracting substantial investment despite not yet generating power, with strong political support and advancements in core engineering. However, some Wall Street analysts caution against a potential bubble in the sector due to high valuations and limited supply chains.
Data centers in the US are significantly driving up power prices, with some locations experiencing bills up to 267% higher than five years ago. Meanwhile, Ford's CEO, Jim Farley, is focusing on the 'essential economy' to fuel the company's growth.
Oklo, a small modular reactor startup, saw its share price surge after going public. However, Bank of America and Goldman Sachs have since downgraded their ratings. In other news, Hamas is reportedly ready to release all Israeli hostages under a Trump-era plan, according to a group close to the Palestinian militant organization.
US Energy Secretary Chris Wright expressed confidence in cutting-edge nuclear power technology, highlighting its potential to transform global energy security. Commonwealth Fusion Systems, a startup, is developing a commercially viable nuclear fusion reactor with US government support. The company raised $863 million this year and secured advance power sales deals with Eni and Alphabet for its first reactor. However, Dimple Gosai, head of US clean tech equity research at Bank of America, believes the sector's valuations are too high and may not deliver expected results.
Despite warnings of a potential bubble, nuclear startups continue to attract significant investment and political backing. Data centers are driving up power prices in the US, while Ford focuses on the 'essential economy' for growth. Oklo's share price surge and subsequent downgrades, along with Hamas' reported readiness to release hostages, highlight the varied landscape of current events. The US government supports innovative nuclear fusion projects, but analysts caution against overly optimistic valuations in the sector.
