Paladin Energy Shares Soar on Amazon’s Boost to Uranium Demand
Kirti Tak
Kirti Tak Oct 17, 2024, 08:51 AM
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Australia-based uranium production company Paladin Energy’s stock is rising following Amazon’s push into nuclear energy, boosting uranium demand.
Shares of ASX-listed Paladin Energy AU:PDN +10.27% ? soared nearly 10% as of writing, in reaction to an announcement made by Amazon AMZN -0.43% ? that could boost the uranium demand. Amazon is the latest tech company to invest in nuclear energy and sees this as a huge opportunity to meet the increasing power needs of its data centers. This signals positive prospects for uranium demand in the coming years.
The announcement has also boosted other uranium stocks on the ASX. Australia’s Bannerman Energy AU:BMN +9.88% ? surged 8%, Lotus Resources AU:LOT +11.11% ? was up 10%, while Boss Energy AU:BOE +6.12% ? gained 6% as of writing.
Amazon Fuels Uranium Surge with Nuclear Push
Amazon’s cloud computing arm, Amazon Web Services (AWS), is committing over $500 million to nuclear energy, unveiling projects across multiple states in the U.S. Recently, AWS has signed a partnership with Virginia-based Dominion Energy to explore building a small modular nuclear reactor.
Amazon’s push towards nuclear comes as it faces a growing demand for clean energy, driven by generative AI (artificial intelligence) expansion. This move also aligns with Amazon’s broader goal of achieving net-zero carbon emissions.
Amazon isn’t alone in exploring nuclear energy for its power needs. Several other tech firms are also adopting it to fuel their AI ambitions. Earlier, Alphabet, Google’s GOOG -0.10% ? parent company, revealed its intentions to utilize small modular nuclear reactors for future energy requirements. Meanwhile, Microsoft MSFT -0.63% ? has proposed an ambitious proposal to reactivate a defunct nuclear reactor at Three Mile Island in Pennsylvania to support its AI initiatives.