X-energy shares jump 27% in Nasdaq debut

X-energy debuted on the Nasdaq today, marking a significant milestone for the nuclear energy sector. The company’s initial public offering (IPO)—the process of offering shares to the public for the first time—was priced at $23 per share, which had been revised upward from the $16 to $19 target floated during its investor roadshow. On its first day of trading, the stock performance figures included:

• Opening stock price: $30.11
• Closing stock price: $29.20
• Stock price gain over IPO price: 27%
• Valuation at close: $11.5 billion

This market reception represents a stark contrast to the industry’s standing just five years ago, when interest in a nuclear startup was a surprise to many. In the early 2020s, nuclear startups were in their infancy, and the broader nuclear industry was struggling with delayed projects and massive cost overruns. For instance, two power plants completed in the U.S. state of Georgia—one in the late 2010s and another in the early 2020s—cost around $30 billion to build. Furthermore, at least one frontrunner had run into significant regulatory problems, which had sparked concerns that the industry had not been able to put its past challenges behind it.

Now, investors appear optimistic that X-energy and its peers have overcome industry challenges, largely driven by the data center boom—the rapid expansion of computing facilities required to power artificial intelligence. Graphics processing units (GPUs) require tremendous amounts of electricity. While sources like solar, wind, batteries, and natural gas have been filling this need, tech companies are hoping to diversify their power options. They are exploring nuclear power as a compact option that could fit their sprawling data center campuses. X-energy is betting on modularity to lower costs with its 80-megawatt reactor, a small modular nuclear reactor design that is much smaller than traditional plants. The company hopes a fleet of these reactors can power a single campus, providing the redundancy and stability that operators prize. While construction is underway at X-energy’s fuel facility, the company has not yet started building a power plant. However, customers are already planning purchases. Amazon plans to purchase up to 5 gigawatts of capacity from X-energy over the next decade or so, while chemical manufacturer Dow is set to receive the startup’s first power plant.

Why it matters

X-energy’s successful IPO reflects growing investor optimism in nuclear power, driven by the massive electricity demand from AI-driven data centers.