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In a bold move to power its AI ambitions, Meta Platforms (META) has inked long-term nuclear energy deals with Vistra (VST), spotlighting the utility's pivotal role in the tech-driven energy surge. As data centers devour electricity for AI training and operations, Vistra's nuclear assets are stepping up, fueling a potential stock rebound.

With Vistra already dominating Texas' power market – home to massive AI buildouts – the pact underscores its strategic edge. Amid Big Tech's $600 billion AI spending spree, Vistra's diversified portfolio positions it as a key beneficiary, blending nuclear reliability with natural gas agility to meet soaring demands.

VST stock is soaring 15% in premarket trading this morning on the announcement.

Nuclear Deals Powering AI Growth

Meta's agreements with Vistra target three nuclear facilities: Perry and Davis-Besse in Ohio, and Beaver Valley in Pennsylvania. These 20-year pacts will fund capacity expansions at the Ohio plants and extend their operational lifespans, with licenses running through at least 2036 and one reactor to 2047.

This isn't just about steady power; it's a lifeline for AI data centers, where uninterrupted energy is critical. Vistra's nuclear output, combined with its natural gas and renewables, addresses the immediate needs of hyperscalers like Meta, who projected a need for 1 to 4 gigawatts (GW) of nuclear power in 2024 alone. The deals could deliver up to 6.6 GW by 2035, making Meta one of the top corporate nuclear buyers and highlighting Vistra's scalability in a market where AI electricity demands are skyrocketing.

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Vistra's Texas stronghold underscores this importance. As the state's largest power generator, Vistra benefits from a tech hub ecosystem, with favorable policies supporting natural gas development as a bridge to a more complete nuclear integration. This positions VST to capture value from AI expansions, where data centers require reliable, scalable energy that renewables alone can't always provide.

Vistra's Edge in the AI Energy Boom

Beyond the Meta pact, Vistra's role in the AI data center buildout is already transformative. Its integrated model – spanning nuclear, gas, and solar – offers flexibility during Big Tech's spending frenzy. Analysts forecast 15% annualized earnings growth over five years, driven by this demand. In Texas, where AI investments are clustered, Vistra's market dominance ensures it leads in powering new facilities, outpacing competitors reliant on less diversified sources.

This surge matters for VST because it validates its strategy in a high-growth sector. As AI capex hits record levels, utilities like Vistra aren't just suppliers – they're essential partners, turning energy constraints into profitable opportunities.

Microsoft (MSFT) CEO Satya Nadella recently said energy availability, not compute, is the real bottleneck AI faces for expansion.

Bottom Line

The Meta nuclear pact makes VST a compelling buy, especially with shares down over 30% from their September peak of almost $220 per share to around $150 today. At a forward P/E of about 14 and EV/EBITDA around 13, valuations remain attractive relative to growth prospects. With AI-driven demand locked in via long-term deals and Texas positioning, Vistra offers upside for investors eyeing energy's tech intersection.

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