Google's parent company Alphabet agreed to buy nuclear power from Constellation Energy. The agreement will drive an additional 890 megawatts of reactor capacity. This move was interpreted by the market as a continuation of the tech giant's AI infrastructure capital expenditure narrative.
The entire commercial nuclear power sector was immediately repriced. Talen Energy rose 12.43%, Vistra rose 10.77%, NRG Energy rose 7.03%, and power equipment company GE Vernova rose 3.96%.
On October 5, the US Department of Energy made a conditional loan commitment of up to 4.2 billion US dollars to upgrade three nuclear power facilities in Beaver Valley, Davis-Besse, and Perry, to add 433 megawatts of power generation capacity and maintain nearly 4 gigawatts of electricity supply.
Analysts believe that hyperscale data centers are willing to pay long-term contract prices for stable power supply around the clock. Whoever has a schedulable baseload power supply in their hands has pricing power. This also explains why the utilities sector became the strongest segment of the day.
The electricity demand for artificial intelligence training and reasoning is turning grid capacity into a scarce resource, and nuclear power can supply electricity around the clock without generating carbon emissions.
Boosted by this news, Australian uranium stocks rose.
On Tuesday, Constellation Energy's shares in New York rose 12%. In early Asian trading in the Australian market, Paladin Energy rose as high as 6.5%, Deep Yellow rose 9.5%, Silex Systems rose 8.2%, and NexGen Energy rose 6.2%.
China's State Council approved eight new nuclear power units on July 31, the first batch of approvals in 2026, involving four projects in Guangdong, Liaoning, Zhejiang and Shandong, adding a total installed capacity of about 10 gigawatts, with a total investment of about 170 billion yuan. According to a research report released by Lyon, nuclear power investment has countercyclical characteristics, bringing many years of profit visibility to nuclear power equipment suppliers.
Hong Kong stocks related to the nuclear power industry chain:
CGN Power (01816): Full construction of Zhaoyuan Unit 2 is about to begin. In addition, it is planned to invest 70 million yuan to establish a joint venture between Guangdong and Shantou Nuclear Power to develop, construct and operate the Lufeng Unit 3 and 4 nuclear power projects. Bank of America Securities published a research report stating that CGN Power's performance in the next quarter beat expectations. Currently, it maintains a positive view of its operations for the next few quarters. It is expected to benefit from resilient market-based electricity prices, the Taishan unit's return to normal operation, and the continued approval of nuclear power projects, and increased visibility of profit and capacity growth.
CGN Mining (01164): Benefiting from the acceleration of nuclear power construction and tight supply of upstream minerals, natural uranium prices continued to rise. As a natural uranium production and trading enterprise that relies on nuclear power companies, CGN Mining is expected to fully enjoy the rise in natural uranium prices. The company's benchmark price adjustment by the Changxie Association in 2026 can be expected, and annual performance growth can be expected.
Dongfang Electric (01072): In the first half of 2026, Dongfang Electric's nuclear energy business revenue was 2,740 billion yuan, an increase of 2.0% over the previous year. By the end of September 2025, orders for nuclear power equipment were in hand at about 28 billion yuan, and revenue is expected to be gradually confirmed from 2026 to 2029. Among the 8 nuclear power units approved by the National Standing Committee in July 2026, Dongfang Electric is deeply involved in supplying core equipment such as steam generators and steam turbine generators for projects such as Taipingling Phase III, Jinqimen Phase II, Laiyang Phase I, and Zhuanghe Phase 1.
Shanghai Electric (02727): The company covers core equipment for nuclear islands and conventional islands and has a forward-looking layout of fusion fields. It has both technical barriers and order reserves, and there is strong certainty about future performance growth. In the first half of 2026, Shanghai Electric added 4.57 billion yuan in orders for nuclear power equipment. In the “15th Five-Year Plan” tender for the first batch of 8 nuclear power units, Shanghai Electric Nuclear Power Group won the bid for 24 sets of nuclear island main equipment, and the power plant group simultaneously received the supply of conventional island TG packages. Its comprehensive domestic market share for nuclear island equipment has long been in a leading position in the industry.
Harbin Electric (01133): One of the core suppliers of nuclear power main equipment in China. The nuclear power business covers nuclear island main equipment, conventional island main equipment, nuclear grade pumps and valves, nuclear grade motors and main helium fans, etc., and also participates in various types of reactors such as Hualong 1, Guoguo 1/CAP1400, AP1000, VVER, high temperature air cooled reactors, fast reactors, and small reactors. The company is full of orders. Since the power equipment manufacturing delivery cycle is usually around 1.5-3 years, the company's coal and electricity orders can cover the next 2-3 years of production and operation. New orders, 64.63 billion yuan of new contracts were signed, +13.6% year-on-year, and the amount of new orders signed reached a record high.
CNNC International (02302): The sharp decline in mid-term revenue was mainly due to a sharp decrease in the volume of natural uranium business transactions between the company and independent third parties compared to the same period last year.