Understanding the Market | Nuclear power stocks expanded their gains in the morning, with CNNC International rising nearly 12% during the session. Microsoft and NVIDIA have reached a collaboration in the field of nuclear energy AI

According to Zhitong Finance APP, the gains of nuclear power concept stocks expanded in the morning session. As of the time of publication, CNNC International (02302) rose by 9.61% to HKD 6.50; CGN Power (01816) increased by 5.08% to HKD 3.72; CGN Mining (01164) climbed by 4.57% to HKD 3.89.

In terms of news, Microsoft and NVIDIA announced a partnership to advance the "AI for nuclear" initiative, aimed at leveraging artificial intelligence tools to accelerate the construction and operation of nuclear power plants in response to the enormous energy demand brought about by the rapid expansion of the AI industry. Microsoft Vice Chairman and President Brad Smith publicly announced the collaboration at the CERAWeek energy conference on Tuesday. He stated that the two companies have genuinely created a set of solutions that are expected to play a significant role in promoting the expansion of nuclear power construction.

China Merchants Securities pointed out that the contract-for-difference model in Liaoning and Guangxi provides a guarantee mechanism for nuclear power, allowing most of the nuclear power output to be settled at the approved price. To avoid excessive impact on the profitability of nuclear power from market fluctuations, other provinces are also expected to introduce similar electricity price guarantee mechanisms to ensure the safe and stable operation of nuclear power. The profitability stability of nuclear power companies will be further enhanced, and combined with the high growth brought by the gradual commissioning of nuclear power units, the valuation of nuclear power companies is expected to be reshaped