A 70-year-long effort to harness nuclear fusion reactions to generate unlimited clean energy is finally taking shape. For the first time in history, U.S. government scientists have generated more energy from a controlled reaction than it consumed.

The breakthrough was achieved at the Lawrence Livermore National Laboratory last Tuesday after successfully simulating the solar reactions.

The net energy gain that the experiment achieved paves the way for an abundant supply of reliable, clean, and sustainable alternatives to fossil fuel. If regularly achieved, net energy gains can curb climate change (if not reverse it in the very long term), oil sector-induced inflation can be tamed, and the world can eventually be weaned off its dependence on fossil fuels. (Deep dive: Financial Times)

The stock angle

This has been an achievement decades in the making because nuclear fusion has the potential to create energy to power the world without producing carbon or radioactive waste. The road ahead will still be long before this technology becomes commercially viable, but for those in it for the long game, here's a look at how the breakthrough can benefit publicly traded companies like Chevron (CVX) and Amazon (AMZN).

One of the world’s largest energy companies, Chevron, has made several significant investments in the area of clean energy. In this regard, the company started the Chevron Technology Ventures investment fund, which allocates its investments to several low-carbon energy resources. The fund presently has 10 investments in several innovative energy technologies.

The fund’s investment in Zap Energy, a company that is developing nuclear fusion-related technology, can provide Chevron’s investors significant exposure to this area. Moreover, its investment plans in expanding its hydrogen capabilities also speak of its commitment to improving clean energy.

Apart from its investments in clean energy, Chevron’s practical capital spending strategies and cost control measures can fuel solid long-term growth. Strong cash flow generating capability allows the company to up its oil production level, reduce its debt, and enhance shareholder value. Chevron is well-positioned to grow in the conventional oil and energy sector as much as it is when clean energy starts getting commercialized.

Chevron is rated HOLD by 12/13 WSJ analysts and consensus of Overweight

At first glance, Amazon seems to be an unusual choice of stock when it comes to the process of nuclear fusion. However, diving deeper, technology is a very intricately interconnected marvel; and being one of the biggest tech giants, very few technological advancements can escape Amazon’s investments.

Companies dabbling in nuclear fusion directly are looking forward to creating functional reactors in the next few years. Although it’s likely that nuclear fusion technology commercialization won’t happen until the end of the decade, one of the industries that might be among the first to jump on the bandwagon is data centers.

Data centers run on high amounts of power because of the sheer volume of data that forms the backbone of tech. For that reason, data centers are found in less-populated areas and already have the infrastructure to support new generators; thus ticking two important boxes for placing a nuclear reactor (the phrase “data is the new oil” now makes sense).

Now, Amazon already has billions invested in its AWS data centers and is continuing to expand its footprint in this market. In this case, it will not come as a surprise if Amazon, given its remarkable resources, adopts nuclear fusion technology to improve its cost efficiency and revenues.

Amazon has a consensus rating of BUY by WSJ analysts

Here's a bull put spread on AMZN to make 1% yield (13% annualized yield) as long as AMZN stays above $80.92 through the next month.

Buy 2 $79 p, Sell 1 $80 p, Sell 2 $81 p, all exp 1/13/23