Nvidia CEO Says Nuclear Is AI's Future — Oklo, NuScale Ready To Roar Back?

Core Viewpoint - NVIDIA CEO Jensen Huang's endorsement of the nuclear sector highlights the strategic necessity of small modular reactors (SMRs) for powering AI data centers, potentially reversing the recent stock decline of SMR developers [1][4][5]. Group 1: Industry Validation - Huang's support for the nuclear sector is seen as a significant validation, potentially aiding in the recovery of SMR stocks that have faced a downturn [1][4]. - The demand for SMRs is framed as a strategic necessity for the AI revolution, moving the focus from the high risks of SMR firms to the substantial market opportunities they present [4][6]. Group 2: Energy Needs and Solutions - Huang identified the energy demands of AI data centers as a critical issue, referring to them as "gigawatt factories" that cannot be easily integrated into the existing public grid [2][3]. - He proposed that dedicated or off-grid power generators, specifically SMRs, are essential for the continued growth of AI, with expectations of seeing numerous small nuclear reactors in operation within six to seven years [3][6]. Group 3: Market Implications - The nuclear sector has faced skepticism regarding the financial viability of SMR projects, which currently lack significant revenue [4]. - Huang's timeline of "six to seven years" provides a credible horizon for investors, encouraging long-term investment in the sector after a period of short-term trading abandonment [6].