Nuclear energy stocks were popular among investors in 2024, often topping the S&P 500 index. Some of these companies simply crushed the stock market—Constellation Energy (CEG) and Vistra (VST) saw outperformance of 91% and 258%, respectively. Massive growth was propelled by escalating energy requirements from the tech sector, especially as major firms raced to secure green power to run their AI (artificial intelligence) projects.
Despite some regulatory uncertainties on the horizon, industry analysts are still optimistic about the outlook for nuclear energy stocks in 2025. They point to a larger trend: electricity demand is expected to rise and rise as AI technologies, data centers and more get built out. Industry insight suggests U.S. demand for electricity from data centers will grow from about 4% of total energy use to between 11% and 12% in 2030.
Recently the company received a major new contract, worth $840M over 10 years, from the United States General Services Administration (GSA) to supply power to multiple federal agencies. The agreement is part of a broader commitment by the federal government to develop the capacity of nuclear energy, regarded as an increasingly important resource for meeting energy needs in the future. A senior analyst at KeyBanc, Sophie Karp adds that the nuclear sector’s status is unique, highlighting the challenges to building new, full-scale nuclear plants. This scarcity adds to the fundamental value of existing owners of nuclear reactors like Constellation, which has a large network of reactors in the Midwest and Eastern United States.
AI Meets The Nuclear Energy Sector
As tech powerhouses pour funds into sustainable energy innovations, the overlap of AI and nuclear energy is gaining more and more significance. This raises masses of AI applications, which leads to a huge demand for energy which is beneficial for the resuscitation of nuclear energy. While the number of nuclear plants has decreased, with 13 shuttered since 2013, discussions about reopening current plants and building small modular reactors (SMRs) are building steam. Among the prominent proponents are visionaries such as Bill Gates, Sam Altman, and Jeff Bezos. In the United States, electricity demand is expected to grow about 16% over the next five years, according to recent projections by McKinsey & Co., which translates to a need for an additional 128 gigawatts of capacity by 2029. Although natural gas is a widely used energy source, a large number of tech companies are now pursuing nuclear energy as a reliable way to fuel their expanding data centers.
Nuclear energy stocks saw a notable uptick in response to Constellation’s GSA contract announcement, echoing earlier enthusiasm seen in October when it closed a long-term deal to supply power to Microsoft for its data centers. This partnership is believed by analysts to be a validation of the use of nuclear as economically viable for very large scale data compute operations, leading to positive pricing on future contracts. But the stock market that soared in 2024, experts warn, is unlikely to follow with a repeat performance in 2025. Wells Fargo analyst Neil Kalton is cautioning investors to temper expectations by saying that while companies like Constellation and Vistra are well positioned for continued growth, the stunning returns of last year will not reflect on such dramatic levels.
The answer lies in the fact that nuclear remains a niche energy source with a complicated regulatory environment surrounding it. Recent demonstrations against a nuclear agreement between Amazon and Talen Energy highlight the problems confronting the field. Critics say that such arrangements could lead to sub-par grid reliability and higher costs passed on to consumers, with greater scrutiny from regulators. Such hurdles aside, the bipartisan support for nuclear energy appears to hold, with both Democrats and Republicans acknowledging its promise as a clean energy source. The nuclear production tax credit created under the Inflation Reduction Act is also projected to continue as a financial lifeline for the industry, serving to backfill at least a stable price floor for nuclear energy through 2032.
Small Modular Reactors
A New Era of Nuclear: The Advancement of Small Modular Reactors (SMRs) Tech leaders are backing companies like Oklo to bringing cutting-edge SMRs to market. While profitability remains elusive, the interest from major players in the tech space indicates strong demand for these nascent solutions. As more and more companies are looking into SMR technology it seems like momentum is building. Analysts expect that the partnerships will continue in 2025 as the big tech companies look to secure energy sources to power their growing data center fleets.
Conclusion
This integration not only enhances the efficiency of nuclear power generation but also aligns with the industry’s push for cleaner energy solutions. As long as the industry is supported by powerful advocates, and people begin to recognize the potential of the world nuclear stock, x-ray stocks should continue to rise in a world that requires more and more energy.
The #1 Nuclear Energy Stock to Buy Right Now…
NuScale Power Corporation (Ticker: SMR)
Revolutionizing Clean Energy with Small Modular Reactors
NuScale Power is at the forefront of the global transition to clean energy. The company’s innovative small modular reactors (SMRs) offer a scalable, reliable, and carbon-free alternative to traditional energy sources. With nuclear energy increasingly seen as a cornerstone of decarbonization efforts, NuScale’s technology is a game-changer.
Why SMR is a Top Pick for 2025:
- Recent Wins in Funding: In 2024, NuScale secured over $275 million in federal and private funding to accelerate the deployment of its SMR technology. The company is actively collaborating with governments and utilities worldwide to meet ambitious clean energy targets.
- Commercialization Milestone: NuScale recently announced that its first SMR-powered plant, the Utah Associated Municipal Power Systems (UAMPS) Carbon-Free Power Project, is on track to go online by 2029. This milestone will position NuScale as a market leader in modular nuclear power.
- Expanding Market Demand: According to a report by BloombergNEF, the global market for SMRs could exceed $150 billion by 2030. With regulatory frameworks favoring low-carbon solutions, NuScale is positioned to capture significant market share.
As governments and corporations alike race to meet net-zero goals, NuScale’s early mover advantage in SMRs makes it a compelling choice for investors focused on sustainable energy.
