U.S. Approves $1B Loan to Restart Three Mile Island as AI Power Needs Surge

The U.S. government has approved a sweeping $1 billion federal loan to Constellation Energy to revive the shuttered Three Mile Island facility—one of the most historic nuclear sites in the world. The Three Mile Island nuclear restart is now a centerpiece of the Trump administration’s strategy to rapidly expand reliable baseload energy to match America’s accelerating artificial intelligence boom.

Three Mile Island nuclear restart

Bringing a Dormant Nuclear Asset Back Online

Three Mile Island, located near Middletown, Pennsylvania, has been largely dormant since its notorious 1979 partial meltdown. The second, undamaged reactor continued operating for decades but was ultimately closed in 2019 due to high operating costs.

Constellation Energy now plans to overhaul and revive that reactor by 2027 at a projected cost of $1.6 billion—partially supported by the federal loan. Under a 20-year agreement, Microsoft will purchase the electricity directly to power its rapidly expanding AI data-center network. Once operational, the Three Mile Island nuclear restart will add roughly 800 megawatts of steady, around-the-clock energy to the U.S. grid.

“We want to get as much reliable electricity on the grid as quickly as possible,”
— Energy Secretary Chris Wright

AI Is Rewriting U.S. Energy Policy

AI-driven power consumption is growing so fast that utilities, regulators, and tech giants are now collaborating on long-term, guaranteed energy supply. Unlike solar and wind, large-scale nuclear provides the 24/7 stability required for model training and inference workloads.

The administration’s broader goal is to quadruple nuclear generation—from today’s 100 gigawatts to 400 gigawatts by 2050. The Three Mile Island nuclear restart is being touted as a template for expediting upgrades and restarts of older nuclear sites with updated regulatory guidance from the Nuclear Regulatory Commission.

Why Nuclear Is Suddenly Back in Favor

For years, nuclear struggled to compete with cheap natural gas and rapidly expanding renewables. But geopolitical instability—especially Russia’s invasion of Ukraine—reshaped global sentiment. France, Japan, and the United Kingdom are all pursuing nuclear expansion plans of their own.

The U.S., meanwhile, faces a surge in energy demand as hyperscalers—Microsoft, Amazon, Google—race to build AI data centers consuming more electricity than entire cities. The Three Mile Island nuclear restart directly addresses this shortfall and signals a shift toward nuclear as a core component of the AI economy.

What Traders Should Watch Now

⚡ Constellation Energy (CEG) – Beneficiary of the Nuclear Revival

• Long-duration contract revenue with Microsoft boosts financial visibility.
• Federal loan support lowers execution risk on the restart timeline.
• CEG remains a strong candidate for trend-following setups on pullbacks.

⚡ Microsoft (MSFT) – Securing Energy for Growth

MSFT is locking in predictable power pricing for two decades, a major advantage as AI workloads scale. Traders should monitor whether reduced energy uncertainty translates into improved AI segment guidance in future earnings.

⚡ Uranium & Nuclear ETFs (URA, NLR)

Sector ETFs often react strongly to nuclear policy announcements. Breakouts above recent highs could offer continuation setups.

⚡ Utility Stocks in High-Growth AI Regions

The Three Mile Island nuclear restart may spark similar deals nationwide. Utilities positioned near major data-center clusters (Northern Virginia, Arizona, Texas, Ohio) could experience re-rating events.

Bottom Line

The Three Mile Island nuclear restart represents one of the most significant intersections yet between AI and U.S. energy policy. With Microsoft now directly influencing nuclear strategy—and the federal government aggressively backing restarts—the return of nuclear is no longer theoretical.

For traders, this marks the beginning of a multi-year theme: the AI-energy complex. Nuclear, utilities, hyperscalers, and infrastructure providers are now tightly intertwined—and ripe for event-driven opportunities.

Read CNBC’s coverage here Trump backs Three Mile Island restart with $1 billion loan to Constellation
Microsoft (MSFT), Constellation Energy (CEG) $1B loan granted to reopen Three Mile Island plant

Boeing Stock Slips Despite Big Dubai Airshow Orders — Here’s What Traders Should Really Watch

Boeing landed major aircraft orders at the Dubai Airshow this week, including new commitments for the 777X and 787 Dreamliner. But the stock still closed lower, a sign that investors are focused on something far more important than order announcements: the Boeing cash flow outlook.

Big Orders, Weak Stock Reaction

Boeing shares dipped again, closing near $189 despite headline wins:

• Gulf Air finalized an order for 15 Dreamliners.
• Emirates added 65 Boeing 777X jets to its massive backlog.

These orders bring Boeing’s 777X backlog to roughly 630 planes. Yet the muted response reflects a market that cares less about future demand and more about execution today — especially the Boeing cash flow outlook.

Execution, Not Demand, Is the Problem

Boeing has more than 6,500 unfilled orders, indicating strong demand. What investors really need is proof that the company can:

• deliver aircraft consistently,
• increase the output of the 737 MAX and 787,
• and strengthen the Boeing cash flow outlook.

The 777X remains a sticking point. First flown in 2020, certification may not arrive until 2027, creating years of cost overruns and delaying cash generation that investors have been waiting for since before the pandemic.

Downgraded Free Cash Flow Estimates

Fresh analysis has slashed the expected 2026 free cash flow from $5 billion to just $2.5 billion. That’s a major reason the stock is down even as new orders roll in. Big commitments don’t help the stock when the Boeing cash flow outlook is deteriorating.

Some analysts—particularly at UBS—still believe Boeing can generate $9 billion in free cash flow in 2027 and up to $18 billion by 2029. But until production stabilizes, confidence remains fragile.

Trading Outlook for Boeing

Short-Term Bearish Setup

• Weak reaction to positive news is a bearish signal.
• Resistance at $195–$200 remains firm.
• A break below $185 could open a slide toward $178–$180.

Short-Term Bullish Trigger

• Any positive update on MAX or 787 production ramp.
• Concrete progress on 777X certification.
• Improved Boeing cash flow outlook guidance.

Swing Trader View (1–3 Months)

Expect volatility around every production headline or FAA update. The stock behaves like a “show me” story — traders react to execution, not promises.

Long-Term Investors

If Boeing stabilizes MAX and 787 output and clears 777X certification hurdles, long-term upside remains substantial. But confirming a stronger Boeing cash flow outlook is the key milestone before institutions begin accumulating again.

Bottom Line

Boeing is winning orders, but that’s not what will move the stock. Traders and investors want sustained production improvements and a repaired Boeing cash flow outlook. Until Boeing delivers that, every positive headline will be overshadowed by cash concerns and certification delays.

Nvidia Slips Ahead of Earnings as AI Sentiment Weakens — What Traders Should Watch

Nvidia stock began Tuesday’s session under pressure once again, falling more than 2% in early trading as Wall Street continued rotating out of mega-cap technology and AI leaders ahead of Wednesday’s earnings. The move followed Monday’s broad tech selloff and came amid rising concerns that the economics of generative AI may not be as strong—or as immediate—as once believed. Redburn and Rothschild & Co. issued fresh downgrades of Microsoft and Amazon, two of Nvidia’s largest customers, citing skepticism around AI monetization. This shift in tone has injected volatility directly into the Nvidia AI earnings outlook.

Nvidia attempted to soften the blow on Tuesday morning by announcing up to $10 billion in new investment in Anthropic. Microsoft will also contribute up to $5 billion, and Anthropic will scale its Claude models on Microsoft cloud infrastructure powered by Nvidia GPUs. The companies emphasized a new collaboration to optimize Anthropic workloads for future Nvidia architectures. While strategically important, the news wasn’t strong enough to fully reverse early selling pressure.

Other chip stocks also declined sharply—AMD fell nearly 6%, Broadcom slipped 1.5%, and the VanEck Semiconductor ETF dropped 2.8%. This widespread weakness underscores the importance of Wednesday’s earnings announcement to Nvidia’s AI earnings outlook.

What Wall Street Expects on Wednesday

Analysts project Nvidia will report:

• Revenue: $54.8 billion
• EPS: $1.23

These expectations remain historically high, but after two consecutive down days, Nvidia now faces a slightly lower hurdle than usual. Still, traders will scrutinize far more than top-line numbers. The Nvidia AI earnings outlook hinges on:

• Competition from AMD, cloud ASICs, and custom hyperscaler silicon
• Chip depreciation cycles are affecting spending timelines
• Management commentary surrounding AI demand durability

Morningstar strategist Dave Sekera notes that traders want clarity on shifting competitive dynamics because Nvidia’s first-mover advantage—while massive—is not permanent.

What Today’s Price Action Means for Traders

Tuesday’s decline wasn’t random—it was a repricing of expectations for the Nvidia AI earnings outlook ahead of a major catalyst. This gives traders several clear setups going into Wednesday.

Day Trading Outlook

Bullish Intraday Scenario

• Holding above $182–184 → VWAP reclaim long setups
• Break above $188–190 → momentum continuation
• Possible short–covering rally into earnings

Bearish Intraday Scenario

• Lose $180 → flush toward $176–178
• Watch sympathy weakness in AMD, AVGO, SMH
• “Sell the rumor” pressure into the close

Swing Trading Outlook (1–5 Days)

Bullish (Post-Earnings Beat)

If Nvidia beats and guides higher, upside targets include:

• $195
• $203
• $210 on a full squeeze

This scenario requires stabilizing margins and improving tone in Nvidia’s AI earnings outlook.

Bearish (Miss or Weak Guidance)

Downside targets include:

• $170–175 primary support
• $165 if AI sector selling accelerates

Bottom Line

Tuesday’s selloff reflected the market adjusting to uncertainty surrounding Nvidia’s AI earnings outlook. With tech downgrades, AI-monetization concerns, and a cautious tone across the sector, Nvidia enters its earnings report facing more pressure—and more opportunity—than at any point in the past year.

The company’s multibillion-dollar investment in Anthropic reinforces its deep position at the core of AI infrastructure. Now, the question is whether earnings can calm concerns about competition, margins, and long-term chip demand. Traders should prepare for volatility—and for the possibility that Wednesday marks the beginning of Nvidia’s next major trend.

AI Chip Race Heats Up as Tech Giants Build Their Own Silicon