Amazon invests in nuclear power, boosting stocks as the tech giant aims for net-zero carbon emissions.
Sectors & Industries
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Amazon Web Services is investing over $500 million to develop small modular nuclear reactors (SMRs) to support its growing energy demands, particularly for AI-driven data centers. AWS has partnered with Dominion Energy in Virginia and Energy Northwest in Washington. SMRs offer quicker construction, a smaller footprint, and produce no carbon emissions. This move aligns with Amazon's goal of achieving net-zero carbon emissions. As more tech companies like Google and Microsoft adopt nuclear energy, nuclear stocks such as OKLO, CEG, and VST saw gains of 104%, 5.64%, and 9%, respectively, last week. The Uranium miners ETF also rose 10% last week.
Netflix shares surged 11% after the company reported third-quarter earnings that exceeded expectations. Earnings per share reached $5.40, above the $5.12 estimate, and revenue was $9.83 billion, beating the anticipated $9.77 billion. Netflix’s ad-supported tier saw significant growth, rising 35% quarter over quarter. The company expects fourth-quarter revenue to increase by 14.7% to $10.13 billion, and projects 2025 revenue of $43-44 billion, reflecting growth of 11% to 13%. Analysts praised Netflix’s outlook, citing its continued content investments.
Chip stocks rallied following Taiwan Semiconductor Manufacturing Company's strong third-quarter earnings report. TSMC’s profits surged 54% year-over-year, driven by robust AI-related demand. TSMC’s positive AI outlook boosted investor sentiment, with the company expecting AI revenue to triple in 2024. Despite recent concerns over AI infrastructure spending created by poor guidance from semiconductor making ASML, TSMC’s strong results reassured investors about the future of AI-driven demand for semiconductors.
United Airlines shares surged nearly 13% after the company reported strong third-quarter earnings, surpassing Wall Street estimates, and announced a $1.5 billion share buyback, its first since the pandemic. United forecast higher airfares into 2025 and provided optimistic fourth-quarter earnings guidance. The company’s revenue hit $14.84 billion, up 2.5% year-over-year, while corporate and premium revenues saw solid gains.
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