Key Highlights
- X-Energy shares surged 7.22% in extended trading Tuesday following Bloomberg’s confirmation of its participation in a government-backed nuclear initiative
- A $200 million federal program seeks to expedite nuclear reactor deployment for powering artificial intelligence data centers
- Tech giants Microsoft and Nvidia have joined the initiative alongside nuclear firms X-Energy and Oklo
- Industry competitor Oklo saw shares climb 6.31% to $46.50 during after-hours trading on identical news
- The Department of Energy planned to officially unveil the program on Wednesday
Shares of X-Energy soared 7.22% to $16.79 during after-hours trading Tuesday following a Bloomberg report revealing the company’s participation in a Trump administration-supported $200 million federal initiative designed to fast-track nuclear reactor development for powering AI-driven data centers.
X-Energy, Inc. Class A Common Stock, XE
Industry competitor Oklo experienced a similar boost, with shares advancing 6.31% to $46.50 during the same after-hours session following the news. The gains came despite broader market weakness, as Wall Street futures trended lower Tuesday night.
The Department of Energy is spearheading the initiative and planned to officially announce it Wednesday. Bloomberg reported the news based on a document it obtained that verified both X-Energy and Oklo’s involvement in the program.
The scope of the initiative extends beyond the nuclear reactor companies. Technology heavyweights Microsoft and Nvidia have also joined the program, creating a government-supported collaboration between AI industry leaders and next-generation reactor developers.
Part of the $200 million in allocated funding will support DOE national laboratories and prominent research universities. This broad partnership approach has captured Wall Street’s attention, with multiple analysts maintaining Buy recommendations on X-Energy alongside price targets significantly above current trading levels.
The Nuclear Solution for AI Energy Demands
Nuclear energy has emerged as a compelling solution to the power challenges posed by artificial intelligence expansion. Data centers demand substantial amounts of reliable, continuous electricity, and nuclear technology provides constant baseload power generation with zero direct carbon emissions.
This unique value proposition has accelerated tech sector interest in nuclear partnerships, ranging from agreements to revive dormant facilities to increased investment in small modular reactor developments.
X-Energy’s Xe-100 small modular reactor represents the cornerstone of its development roadmap and positions the company to capitalize directly from a program focused on accelerating deployment schedules.
Addressing the AI Infrastructure Challenge
According to reports, the $200 million initiative was created in response to growing concerns that the massive data center expansion supporting AI development has contributed to rising electricity costs nationwide.
By bringing together major tech players like Microsoft and Nvidia with advanced reactor developers, the administration is demonstrating its view of nuclear power as a fundamental solution to this infrastructure challenge ā not merely an alternative energy source.
With the official DOE announcement scheduled for Wednesday, investor attention remained firmly on X-Energy as a primary beneficiary entering the trading session.
As of this report, X-Energy traded at $16.79, up 7.22% in after-hours activity, while Oklo gained 6.31% to reach $46.50. Wall Street analysts maintaining Buy ratings pointed to the Xe-100 development pipeline as a fundamental growth driver in light of government-accelerated nuclear deployment strategies.
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