Constellation, other nuke-related stocks sink as analyst says Microsoft cancels leases for AI datacenters
Feb. 24, 2025 2:34 PM ET
By: Carl Surran, SA News Editor
Constellation Energy (NASDAQ: CEG) -6%, Vistra (NYSE: VST) -5.1%, and Talen Energy ( TLN) -1.3% in Monday's trading after TD Cowen analysts said Microsoft has begun canceling leases for "a couple hundred" MWs of U.S. datacenter capacity, which could reflect concerns about whether the company is building more AI computing than it will need.
The analysts said Microsoft's pullback reflects a shift by OpenAI toward alternative partners, including Oracle, and the overall effect is "net neutral for third-party data center demand."
Microsoft, in a statement, sought to play down reports of a pullback, saying that while it sometimes makes spending adjustments, it remains on track to spend more than $80B in the current fiscal year on infrastructure "as we continue to grow at a record pace to meet customer demand."
But the nuclear power-related stocks continue to trade sharply lower, and nuclear reactor technology names also trade sharply lower, including Oklo ( OKLO) -11.4%, Lightbridge ( LTBR) -11.1%, Centrus Energy ( LEU) -8.8%, Nano Nuclear Energy ( NNE) -6.1% and Nuscale Power ( SMR) -1.1%.
TD Securities equity trading manager Paul Dotson told Barron's the news is "being misinterpreted," adding that the stocks had posted strong gains in recent weeks and investors are now "viewing news from a negative perspective... especially from sectors and themes which have outperformed." |
