Wall Street Is Betting on Nuclear Energy, But Legendary Investor Peter Thiel Just Ditched This 1 Key Power Stock

Core Insights - Peter Thiel sold his entire stake in Vistra Energy, indicating potential concerns about the stock's valuation [1][2] - Vistra Energy's nuclear plants produce approximately 6.6 gigawatts of power, which is significant amid the growing demand from data centers [1] - The company reported a decline in operating revenues to $4.97 billion in Q3, down from $6.3 billion a year earlier, attributed partly to a power plant outage [3] Company Overview - Vistra Energy is the largest competitive power generator in the U.S. with around 44,000 megawatts of capacity and serves 5 million retail customers [3] - The company is expanding its capacity by building two new natural gas power units totaling 860 MW and has secured a 20-year power supply agreement for 1,200 megawatts from its Comanche Peak Nuclear Power Plant [4] - In October, Vistra completed the acquisition of seven modern natural gas generation facilities with a total capacity of approximately 2,600 MW [5] Financial Performance - Vistra's adjusted EBITDA from ongoing operations increased to $1.58 billion in Q3, up from $1.44 billion in the same quarter of the previous year [3] - For the first nine months of the year, EBITDA from ongoing operations rose to $4.17 billion, compared to $3.66 billion during the same period in the previous year [3] - The stock is currently trading at a trailing price-earnings ratio of 40 times and a forward P/E ratio of 21 times [5] Industry Context - The pro-nuclear stance of the Trump administration and the increasing demand for carbon-free electricity from data centers may provide long-term profit opportunities for nuclear power producers like Vistra [2][6] - Recent legislation has expanded tax incentives for nuclear facilities, which could further benefit the sector [6]