Zacks Investment Ideas feature highlights Palantir, Oklo, Centrus, Constellation and Microsoft

For Immediate Release

Chicago, IL – January 7, 2026 – Today, Zacks Investment Ideas feature highlights Palantir PLTR, Oklo OKLO, Centrus Energy LEU, Constellation Energy CEG and Microsoft MSFT.

Why SMRs Will Play a Key Role in the AI Supercycle

AI: The Most Significant Breakthrough Since the Internet

Whether it is large language models, healthcare, software, shopping, or education applications, artificial intelligence is becoming the most significant technological breakthrough since the internet, and arguably the largest in history. In addition to the benefits of its practical uses, the artificial intelligence buildout will have economic and defense consequences.

From a defense perspective, the impact is already being felt. For instance, Palantir, the leader in AI defense and intelligence applications, is up ~1,800% since its 2020 IPO. Meanwhile, the country or countries that win the artificial intelligence race are likely to experience a productivity boom. Former Wall Street veteran and current Treasury Secretary Scott Bessent recently said, “There’s a very good chance with this AI boom that we’re seeing the productivity kick in as soon as the first quarter.”

AI Requires Immense Energy

Unsurprisingly, the two most competitive AI rivals are the two largest and most sophisticated economies: China and the United States. While most experts agree that the U.S. is off to a lead in AI technology, China enjoys a clear advantage in a critical aspect – energy.

Data centers used to train AI models require immense power. For example, in 2022, the AI LLM data center share of total commercial electricity demand was just 3%. However, by 2027, the Energy Information Administration (EIA) expects that figure to leap to 12%.

Nuclear: The Trump Administration’s Preferred Energy Source

The energy needs of the AI buildout are so vast that big tech companies will tap all forms of energy, including natural gas, coal, and solar. However, based on the Trump Administration’s actions, nuclear and small modular reactors specifically appear to be the energy source of choice. SMRs have several benefits, including:

· Off-grid capability: Instead of using the electrical grid, SMRs can function off-grid. Off-grid capability has two benefits: it does not drive up energy costs for local households, and the data center does not have to rely on the increasingly aging and unreliable U.S. electric grid.

· Clean Energy: Nuclear is considered “clean energy.”

· Pre-fabrication: SMRs are prebuilt in factories, requiring less on-site labor.

SMR Nuclear Stocks to Watch

Monday, several nuclear stocks jumped amid news of a U.S. House panel on Wednesday. Meanwhile, President Trump has already signed four executive orders to deploy new nuclear reactors.

Oklo: Déjà vu?

Oklo is one of the leading SMR stocks. The current technical pullback in shares to the rising 200-day moving average is nearly identical to the pullback that occurred in April (which led to an 8x return in the stock).

Centrus Energy: Helping the U.S. Decouple from Russia

Centrus recently received $900 million from the U.S. government to develop next-gen nuclear fuel, reducing the reliance on Russian uranium.

Constellation Energy: A Proven Entity

Among nuclear players, CEG has the most predictable revenue stream. Last year, CEG signed a landmark 20-year agreement to restart the abandoned “Three Mile Island” nuclear plant to provide carbon-free power for Microsoft data centers.

Bottom Line

As the AI race intensifies, the battleground has shifted from pure software to the physical infrastructure that powers it. The convergence of AI’s immense processing needs and the Trump Administration’s aggressive push for nuclear energy has created a unique “perfect storm” for the energy sector.

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