Nuclear energy is entering 2025 with significant momentum, driven by a combination of timely policy changes and surging demand from energy-intensive industries like artificial intelligence (AI). The U.S. Treasury’s finalized rules on hydrogen tax credits now include nuclear power, providing a catalyst that could unlock billions of dollars in funding for hydrogen production projects. This marks a turning point for nuclear energy, positioning it as a critical player in the clean hydrogen supply chain and further enhancing its value proposition in the global push for decarbonization.
But the hydrogen tax credit isn’t the only factor fueling optimism around nuclear energy. The industry is also seeing rising demand from hyperscalers—tech giants building AI data centers requiring immense and consistent energy supplies. With nuclear power offering a reliable, zero-carbon solution, companies like Constellation Energy and Vistra are striking high-profile deals with names like Microsoft, Meta, and Amazon. These partnerships highlight the growing role of nuclear energy in meeting the challenges of our digital future.
Small modular reactors (SMRs) add yet another layer of potential. Though still in development, SMRs promise a more cost-effective and scalable approach to nuclear energy, attracting backing from major investors like Bill Gates and Sam Altman. With regulatory support increasing and demand projections rising, nuclear energy stocks are uniquely positioned for growth in 2025. Below are three stocks that stand out in this transformative space.
Constellation Energy (CEG) – Powering AI Growth
Constellation Energy is at the forefront of the nuclear energy boom, benefiting from its established infrastructure and strategic deals with major tech players. The company operates 21 nuclear reactors across the Midwest and Northeast, making it a cornerstone of U.S. nuclear power.
In 2024, Constellation shares surged 91%, propelled by partnerships like its two-decade agreement with Microsoft to supply nuclear power for AI data centers. The company further bolstered its position with a $840 million contract to provide power to federal agencies, signaling strong government support for nuclear energy expansion. Looking ahead, management projects annual earnings growth of at least 13% through 2030, backed by a robust pipeline of deals and the benefits of the newly clarified hydrogen tax credits. For investors seeking a stable yet growth-oriented energy play, Constellation offers both reliable dividends and a foothold in a rapidly evolving market.
Vistra (VST) – A Balanced Energy Portfolio with Nuclear Upside
Vistra is another standout in the nuclear sector, offering a diverse portfolio of power generation assets that include nuclear, natural gas, and renewables. The stock rocketed 258% in 2024, making it one of the S&P 500’s top performers. This growth reflects both strong operational execution and the company’s strategic pivot toward clean energy solutions.
Vistra’s involvement in co-location deals for nuclear power and AI data centers positions it well for 2025 and beyond. Management has hinted at expanding these efforts, potentially including new nuclear generation projects. With a solid track record and exposure to multiple energy markets, Vistra combines stability with growth potential, making it a compelling choice for investors.
Oklo (OKLO) – The Future of Small Modular Reactors
Oklo represents the cutting edge of nuclear innovation with its focus on small modular reactors. Backed by OpenAI founder Sam Altman, Oklo’s stock soared 101% in 2024, with much of that gain tied to its growing pipeline of deals for data center power. The company now has commitments for 2,100 megawatts of power, up significantly from earlier in the year.
While SMRs are still in the early stages of commercialization, Oklo is poised to lead the pack, with its first operational reactor expected by 2027. For investors willing to take on some volatility, Oklo offers a high-risk, high-reward opportunity to be part of the next generation of nuclear energy technology.
The nuclear energy sector is uniquely positioned to capitalize on two transformative trends: the clean hydrogen revolution and the explosive growth of AI. Companies like Constellation Energy, Vistra, and Oklo are at the forefront of this shift, each offering a distinct investment opportunity. With the recent hydrogen tax credits providing additional momentum, 2025 could be a landmark year for nuclear stocks. These three companies represent some of the most promising opportunities in the sector, making them worthy of a closer look for any forward-thinking investor.
