Nuclear energy stocks are seeing a resurgence, reminiscent of the 1979 boom, as recent developments could trigger a revival in the industry. On May 23, President Trump announced a set of executive orders aimed at increasing nuclear production while easing regulatory pressures. However, the momentum for nuclear energy has been gaining traction over the past several years.
One of the key factors driving this renewed interest is the push for clean energy initiatives from AI Data Centers, alongside a rising demand for electricity. Unlike wind or solar power, nuclear energy can provide a stable output without being affected by weather conditions. It’s also recognized as a clean energy source, leading tech leaders and regulators to adopt it more readily as the need for power expands.
Despite the considerable advantages, investors should manage their expectations. Constructing nuclear power plants is a lengthy process that requires significant expertise and investment.
However, investment capital is flowing towards nuclear energy enterprises. Some companies are developing innovations that might reduce both construction time and costs.
Several nuclear energy stocks appear poised to lead this industry revival.
Constellation Energy Corp.
Constellation Energy recently made headlines with a partnership announcement involving Meta Platforms Inc. This 20-year electricity purchase agreement is set to deliver 1,121 megawatts of nuclear power to Meta to support its Clean Energy Initiative. The Clinton Clean Energy Center faced closure when emissions credits in Illinois expired, but with this new deal, it’ll remain operational until at least 2027, which positively influenced the stock, briefly hitting $340.
As one of the largest public nuclear companies, Constellation boasts a market cap of $98 billion and annual revenue exceeding $24 billion. Unlike many peers, it has a diversified energy portfolio that includes fossil fuels like natural gas and renewable sources like wind and solar. The company has shown impressive growth as well, with an EPS of $2.14 and revenue of $67.9 billion in its latest report, surpassing expectations. Following these results, analysts raised their price targets for the stock to $337 and $320, respectively, anticipating the stock might hit record highs this year.
Oklo Inc.
Oklo is considered a noteworthy beneficiary of Trump’s executive orders, as its fission reactors are nearing operational readiness, fueled by advanced resources. They utilize high-assay, low-enriched uranium (HALEU), which is superior to the standard fuel used by many traditional plants mentioned in those orders.
Oklo’s shares nearly reached an all-time high post-announcement. However, taking some profits now might create better entry points for investors.
Despite setting a record in February, Oklo shares dropped unexpectedly due to market tariffs. After bouncing back to the 200-day moving average, the stock has shown signs of an upward trend, trading above both the 50- and 200-day averages. A recent decline of 5% could be viewed positively for investors looking for a lower entry price. The stock’s strong momentum score suggests that the upward trend could continue.
Nuscale Power
Nuscale is unique in having its small modular reactor (SMR) module approved by the U.S. Nuclear Regulatory Commission. Although no SMR facilities have been built in the U.S. yet, the current administration is working to change that through recent executive actions. SMRs, being smaller in size, allow for scaled expansion of nuclear operations. Nuscale’s stock achieved a substantial increase recently, buoyed by solid fundamentals.
The stock reached an all-time high as it made a bullish crossover where the 50-day moving average surpassed the 200-day average. Its momentum score reflects the strength behind the current trend, further validated by impressive revenue streams reported shortly after a recent executive order.
Cameco Corp.
Cameco might not be a tech giant, but it plays a crucial role in supporting data centers with its uranium products. As one of the biggest uranium miners globally, its operations extend across four continents.
Despite the broader sector’s favorable conditions, Cameco stock has been trading in a range since last summer. However, growing energy demand and shifting regulatory attitudes toward nuclear power could serve as catalysts for a breakout. The stock has demonstrated bullish signals, with analysts maintaining a consensus buy rating and an average price target suggesting a potential upside from current levels.
This content is offered for informational purposes only and should not be considered individual investment advice.
