Centrus Energy (LEU), a supplier of enriched uranium for nuclear reactors, saw its stock rise following Meta Platforms (META) and Constellation Energy (CEG)‘s major deal announcement and a “Buy” rating from Bank of America. Centrus Energy’s stock climbed this week, up 11.5% from last Friday’s close as of 1:08 p.m. ET. Meanwhile, the S&P 500 and Nasdaq 100 rose 1.2% and 1.8%, respectively.
Meta, the parent company of Facebook and Instagram, signed an agreement earlier this week with Constellation Energy, securing all the power generated by the Clinton Clean Energy Center nuclear reactor in Illinois. The 1.1-gigawatt output is enough to power 800,000 homes.
Meta and other tech giants are finding it increasingly difficult to secure sufficient electricity to meet the staggering power demands of AI—especially while striving to meet climate goals. Nuclear energy provides relatively cheap, stable, and abundant electricity without emitting greenhouse gases.
The deal’s announcement boosted Centrus’ stock, underscoring that the AI industry will actively pursue nuclear energy solutions.
On Wednesday (June 4), Bank of America initiated coverage on Centrus Energy with a “Buy” rating and a $160 price target. The bank stated that Centrus is the “only publicly traded enriched nuclear fuel company globally—at a time when the industry is booming.”
Analyst Lawson Winder noted that Centrus is the leading U.S. supplier of low-enriched uranium (LEU) nuclear fuel, with the U.S. itself being the world’s largest nuclear energy market. Thanks to high industry barriers, Centrus is one of only two licensed uranium enrichers in the U.S. and the sole producer approved for national security applications.
Bank of America remains optimistic about global nuclear fuel demand, suggesting that the Trump administration’s pro-nuclear policies could further boost positive sentiment in the U.S. market.
Centrus is well-positioned to capitalize on the growing demand for nuclear energy. As one of only two licensed uranium enrichers in the U.S., the company enjoys a strong moat. If current market trends persist, Centrus stands to benefit significantly.
