X-Energy, a nuclear reactor developer backed by Amazon.com, saw its shares surge 30.9% on its first day of trading on Nasdaq Friday, reaching a market valuation of $119 billion. This performance highlights strong investor interest in zero-carbon energy developers, a sector seen as crucial for powering the unprecedented growth of artificial intelligence.

On Thursday, X-Energy completed an upsized initial public offering, selling 44.3 million shares at $23 per share, raising $1.02 billion. The pricing significantly exceeded the company's initial target range of $16 to $19 per share, indicating robust market demand. The stock opened at $30.11 on Friday, a gain of approximately 31% over the IPO price.

The Rockville, Maryland-based company secured support from major investors in its IPO, including Amazon.com, Ares Management, and ARK Invest. Notably, Amazon.com already held a 29% stake in X-Energy prior to the public listing.

The debut comes at a time of significant tailwinds for the power industry. Technology giants and data center developers are increasingly turning to advanced nuclear energy to address the power needs of energy-intensive AI infrastructure while meeting goals for around-the-clock carbon-free energy.

The Chief Executive Officer of X-Energy stated that becoming a public company offers advantages in transparency for clients and investors, employee stock incentives, and investment in the supply chain over the coming years. He clarified that the capital raised is intended to strengthen the balance sheet, reduce scaling risks, and ensure a smooth transition for the Xe-100 small modular reactor from demonstration to commercial deployment.

Founded in 2009, X-Energy is developing the Xe-100, a small modular reactor that uses helium instead of water as a coolant. The company also operates a nuclear fuel business, which will supply fuel for the reactors it sells, creating a recurring revenue stream. This unique business model distinguishes it from competitors and has attracted significant investor attention.

X-Energy's customer base includes Amazon.com, specialty chemicals group Dow, and major UK energy services provider Centrica. Since the beginning of last year, the company has completed two separate funding rounds, each raising $700 million, underscoring strong market interest in the sector.

Analysts widely view the heavily oversubscribed IPO as a sign that institutional confidence is growing in advanced nuclear energy as critical infrastructure, driven by surging demand from AI data centers for reliable, 24/7 carbon-free baseload power.