Core Insights - Big tech companies are projected to invest over $500 billion in infrastructure, primarily related to artificial intelligence, in 2026, which could lead to a significant increase in tech capital expenditures as a percentage of GDP, reaching levels seen during previous tech investment cycles [2][3] - The current investment cycle in AI may resemble the Zoom boom rather than the Dotcom Bubble, as the Federal Reserve's accommodative monetary policy could sustain stock market growth even if AI capital expenditures decline [3][6][10] - Concerns about the sustainability of the AI-driven stock market rally have emerged, particularly as tech stocks experienced volatility in late 2025, raising questions about their future performance [4][8] Investment Trends - Historical patterns indicate that tech stocks typically lag the market about a year before the peak of capital expenditure cycles, suggesting potential risks for AI-related stocks [3] - The Federal Reserve's current stance indicates a likelihood of rate cuts, which could support stock valuations by lowering real yields, thereby benefiting tech stocks [6][10] - The tech sector's performance in 2021 was influenced by declining real bond yields, which are crucial for stock valuations, and the sector did not experience a downturn until the Fed's rate hikes began in 2022 [5] Market Dynamics - The tech sector's significant share of the S&P 500 makes the index more susceptible to declines in tech stocks, raising concerns among Wall Street analysts about the sustainability of the AI rally [8] - Lower interest rates and tax cuts from recent legislation could enhance stock market liquidity and economic growth, potentially mitigating the impact of sluggish tech stock performance [9]

Oklo (OKLO) shares soared as much as 20% on Jan. 9 after hyperscaler Meta Platforms (META) agreed to support development of a 1.2-gigawatt nuclear power campus in Pike County, Ohio. This advanced nuclear campus will power META’s data centers, including its artificial intelligence (AI) supercluster broadly known as the “Prometheus” in New Albany, Ohio. More News from Barchart Despite today’s rally, however, OKLO stock remains down nearly 40% versus its 52-week high. www.barchart.com Significance of Me ...

Core Insights - Meta has signed agreements with three nuclear energy companies, making it one of the top buyers of nuclear energy in the U.S. [2] - The agreements aim to support the development of advanced nuclear technologies and enhance the energy infrastructure necessary for AI data centers [3][4] Group 1: Agreements and Partnerships - Meta's agreements with Vistra, TerraPower, and Oklo, along with a previous agreement with Constellation Energy, position the company as a significant player in the nuclear energy market [2] - The partnership with TerraPower will fund the development of two Natrium reactors and energy storage systems, providing Meta with energy rights from up to six additional Natrium units [3] - The agreement with Oklo supports the establishment of a new nuclear technology campus in Ohio and the development of several Aurora Powerhouse reactors [4] Group 2: Energy Supply and Infrastructure - Meta's agreement with Vistra involves purchasing energy from two operating nuclear power plants in Ohio and one in Pennsylvania, ensuring long-term support and investment in these facilities [5] - This commitment from Meta provides Vistra with the certainty needed to invest in existing plants and communities, facilitating new nuclear generation for the grid [6] - The growing demand for electricity from data centers, driven by the AI boom, has led to increased interest from Wall Street investment firms in acquiring utilities [7]

Market Overview - Wall Street closed the week on a positive note, with solid but unspectacular jobs data alleviating fears of a sharp labor market slowdown while maintaining expectations for Federal Reserve rate cuts [1] - The S&P 500 and Russell 2000 reached new record highs, with the S&P 500 rising 0.7% to above 6,970 points and the Russell 2000 increasing 1.2% to 2,635 [2] - Blue-chip stocks remained near record levels, with the Dow Jones Industrial Average around 49,555 and the Nasdaq 100 advancing 1% [3] Employment Data - December nonfarm payrolls increased by 50,000, slightly below the expected 60,000, indicating a continued cooling in employment growth [4] - The unemployment rate unexpectedly declined to 4.4% from 4.5%, suggesting potential stabilization in the labor market [4] - Consumer sentiment improved, with the University of Michigan index rising to 54, the highest level since September [4] Federal Reserve Expectations - Investors are nearly fully pricing in the Federal Reserve to keep interest rates unchanged at its late-January meeting, with expectations for two rate cuts later in the year still alive [5] Notable Company Movements - Vistra Corp. shares surged over 13% after securing a 20-year agreement with Meta Platforms Inc. to supply more than 2,600 megawatts of zero-carbon energy from nuclear plants [5] - Intel Corp. shares jumped 10%, reaching their highest levels since March 2024, following positive remarks from President Donald Trump about a meeting with CEO Lip-Bu Tan [6] Commodity Performance - Commodities saw gains, with silver rising 4% to $80 per ounce, gold increasing 0.6% to $4,500 per ounce, and copper climbing nearly 2% [6] - Crude oil was on track for a weekly gain, with WTI crude advancing by 3% on both Thursday and Friday [7] Major Indices Performance - Major U.S. indices showed positive performance on Friday, with the Nasdaq 100 up 1%, S&P 500 up 0.7%, Dow Jones up 0.6%, and Russell 2000 up 1.1% [8] - The Vanguard S&P 500 ETF advanced 0.7% to $638.49, while the Invesco QQQ Trust Series climbed 1.0% to $626.40 [9]

Core Insights - TerraPower, a next-generation nuclear company backed by Bill Gates, has announced a partnership with Meta to construct up to eight small modular reactors in the United States [1] Company Summary - TerraPower is focused on advancing nuclear technology and aims to enhance energy production through innovative reactor designs [1] - The collaboration with Meta signifies a strategic move to leverage technological advancements in energy solutions [1] Industry Summary - The small modular reactor market is gaining traction as a viable solution for sustainable energy, reflecting a growing interest in nuclear power as a clean energy source [1] - Partnerships between technology companies and energy firms are becoming increasingly common, indicating a trend towards integrated solutions in the energy sector [1]

Core Insights - Meta Platforms (META) has strengthened its commitment to carbon-free energy through two significant partnerships announced on January 9 [1] Group 1: Partnerships - The company has entered into agreements with Oklahoma-based energy providers to enhance its renewable energy sourcing [1] - These partnerships are aimed at supporting Meta's goal of achieving 100% renewable energy for its global operations [1] Group 2: Environmental Commitment - Meta's initiatives reflect a broader industry trend towards sustainability and carbon neutrality among major tech companies [1] - The company's focus on carbon-free energy is part of its long-term strategy to reduce its environmental impact [1]

Core Insights - Meta has announced three agreements to secure nuclear power for its data centers, partnering with startups Oklo and TerraPower, as well as established energy company Vistra [1][2][3] Group 1: Agreements and Capacity - Meta's deals aim to add between 1 to 4 gigawatts of generating capacity by the early 2030s, with a significant portion of the new power flowing through the PJM interconnection [4] - The 20-year agreement with Vistra will provide Meta with 2.1 gigawatts from two existing nuclear plants in Ohio, with additional capacity upgrades expected to generate 433 megawatts [5] - Oklo will supply 1.2 gigawatts, with plans to start power delivery by 2030, while TerraPower aims to begin supplying electricity by 2032 [8][10] Group 2: Technology and Cost Considerations - Existing reactors are currently the cheapest source of baseload capacity, prompting Meta to explore partnerships with SMR startups like Oklo and TerraPower [3][12] - TerraPower estimates it can reduce costs to $50 to $60 per megawatt-hour, while Oklo targets $80 to $130 per megawatt-hour for future plants [12] - Oklo's reactors will need to be built in sufficient numbers to meet Meta's demand, with each reactor producing 75 megawatts [9] Group 3: Industry Trends - The demand for stable, 24/7 electricity from nuclear power is increasing among tech companies, driven by their growing AI ambitions [2] - The race for data center power is benefiting both startups and existing nuclear reactors, albeit in different ways [2]

Core Insights - Meta Platforms, Inc. is highlighted as a significant position in investment portfolios, despite a less than 13% gain last year [1] - The company is facing challenges with its stock performance, particularly after a disappointing quarterly report in late October [1] - There is concern regarding Meta's high investment spending, particularly in AI, with a projected CapEx budget of $70 to $72 billion for the next year, which could potentially increase to $100 billion [1] - Meta lacks a clear AI strategy and does not have a competitive generative AI platform compared to industry leaders like Google and OpenAI [1] Company Overview - Meta Platforms, Inc. develops technologies and applications for social networking and messaging, including platforms like Facebook, Instagram, WhatsApp, Messenger, Threads, and products in virtual and augmented reality [2] Investment Perspective - While Meta is recognized for its potential, there are AI stocks that may offer greater upside potential and lower downside risk [3]

Core Insights - Meta Platforms has entered into 20-year agreements to purchase power from three Vistra nuclear plants in the US and is collaborating with two companies to develop small modular reactors (SMRs) [1][4][10] Group 1: Agreements and Power Supply - The agreements will provide up to 6.6 gigawatts of nuclear power by 2035, with Meta purchasing power from Vistra's Perry and Davis-Besse plants in Ohio and Beaver Valley plant in Pennsylvania [3][7][10] - Meta's partnership with Oklo aims to develop up to 1.2 gigawatts of energy in Ohio as early as 2030, supporting early procurement and development [11] - The company will also help fund TerraPower's development of two reactors to generate up to 690 megawatts of power as early as 2032 [8] Group 2: Industry Context and Implications - The move is part of a broader strategy by Meta and other Big Tech companies to secure long-term electricity supplies as demand from artificial intelligence and data centers rises for the first time in two decades [3][4] - Meta's agreements, along with a previous deal with Constellation to keep an Illinois reactor operating for 20 years, position the company as a significant corporate purchaser of nuclear energy in American history [5] - Critics express concerns that SMRs may struggle to achieve economies of scale similar to current large reactors, and there are currently no US SMRs in commercial operation [5][7]

Core Insights - Meta Platforms announced nuclear power agreements with three companies to support its artificial intelligence (AI) data centers [1] Group 1 - The agreements are aimed at enhancing the energy supply for Meta's AI infrastructure [1] - This move reflects Meta's commitment to sustainable energy solutions in its operations [1] - The partnerships may position Meta favorably in the competitive landscape of AI data center operations [1]