Optimism over AI has inflated valuations across multiple industries, but nowhere more than in power providers, where median price-to-sales multiples nearly tripled since 2023 to 4.53. Utilities aligned with Big Tech’s data-center buildout, such as Constellation Energy and Vistra, have surged on multibillion-dollar nuclear supply deals, while pre-revenue or low-revenue nuclear tech names including Oklo and NuScale have commanded multibillion-dollar market caps. The froth has been punctuated by sharp swings: established players fell more than 10% midweek before recovering, and upstarts dropped over 25% before paring losses. While AI-linked demand has boosted fundamentals for some, the sector’s growing reliance on future capacity and capital markets leaves the frothiest names most exposed if sentiment turns.
Related articles:
Small Modular Reactors (IAEA)
Electric Power Monthly (U.S. EIA)
Price-to-sales ratio (Wikipedia)
