According to the September updated edition of the report, “Pathways to Commercial Liftoff Advanced Nuclear” by the US Department of Energy (DOE), the U.S. nuclear power sector is set to triple in capacity from approximately 100 GW in 2024 to around 300 GW by 2050, driven by increased electricity demand and the need for reliable, carbon-free power. Recent demand surges from artificial intelligence and data centers are encouraging significant investment in nuclear power.
Nuclear also plays a vital role in the energy transition, the United States power systems require an additional 700–900 GW of clean firm capacity to achieve net-zero emissions. The current nuclear fleet, comprising 94 reactors across 54 sites, provides about 20% of the nation’s electricity and nearly half of its carbon-free power.
To support nuclear expansion, the U.S. government has bolstered the sector with tax credits, loans, and research funding. The Inflation Reduction Act’s (IRA) production and investment tax credits for new reactors and existing plants are expected to play a pivotal role.
In 2024, Congress provided a $2.72 billion allocation for developing a domestic nuclear fuel supply chain and passed the ADVANCE Act to improve licensing process efficiency. Congress also allocated $900 million specifically for Gen III+ Small modular reactors (SMRs).
Small modular reactors (SMRs) are an alternative to traditional nuclear plants and offer a promising new opportunity for nuclear energy. SMRs are a type of nuclear reactor with a power capacity of up to 300 MW(e) per unit. They are manufactured off-site and shipped to the location for installation, making them more cost-effective and suitable for a wider range of areas.
How Big Tech is Revitalizing the Industry?
In an interview with Yahoo Finance on October 1, Aniket Shah, Global Head of Sustainability and Transition Strategy at Jefferies, discussed the resurgence of nuclear power in the United States, particularly in Michigan and Pennsylvania, where plants are set to reopen to support the growing demand for electricity driven by the AI boom. Shah emphasized that this development is not surprising, given the long-known need for increased power demand and the role of nuclear energy in the energy transition.
Shah highlighted that the International Energy Agency’s long-term forecast has consistently shown the need to double or triple global nuclear capacity to achieve net-zero emissions. He also pointed out that the US signed an agreement at the Conference of the Parties (COP) nine months ago to triple nuclear capacity over the next couple of decades. Shah attributed the recent momentum in nuclear energy to the growing demand from the tech industry, which is willing to pay a premium for firm and clean power to meet their climate commitments.
Shah noted that Big Tech companies will play a significant role in driving the nuclear renaissance, not only by investing in nuclear power but also in small modular reactors and potentially nuclear fusion. He also emphasized the bipartisan support for nuclear energy in the US, citing the passage of the ADVANCE Act to streamline nuclear approvals and the willingness of politicians from both parties to support nuclear energy. However, Shah acknowledged that the industry faces significant challenges, including a lack of skills and capacity to deliver on the required scale, and that the process of building a new industry will take time.
The tech industry’s demand for energy is driving a surprising trend as big tech companies are increasingly turning to nuclear power to fuel their operations. As demand for clean electricity grows, tech companies are recognizing its potential to provide a reliable, low-carbon source of power for their data centers and AI operations. With that in context, let’s take a look at the 10 best nuclear energy stocks to invest in now.
An aerial view of a nuclear plant, its domes casting a unique shadow.
Our Methodology
To compile our list of the 10 best nuclear energy stocks to invest in now, we scanned nuclear energy ETFs plus online rankings to compile an initial list of 25 nuclear energy stocks. From that list, we narrowed our choices to the 10 stocks that analysts see the most upside to. The list is sorted in ascending order of analysts’ average upside potential, as of November 12.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Best Nuclear Energy Stocks To Invest In Now
10. Duke Energy Corporation (NYSE:DUK)
Upside Potential: 10.04%
Duke Energy Corporation (NYSE:DUK) is one of the largest energy holding companies in the United States, delivering electricity to approximately 8.4 million customers across North Carolina, South Carolina, Indiana, Ohio, Florida, and Kentucky. The company collectively manages around 54,800 megawatts of energy capacity.
Duke Energy Corporation (NYSE:DUK) operates 11 nuclear units located at six sites in North and South Carolina. These plants have a combined capacity of about 10,700 megawatts and supply nearly half of the electricity consumed in the Carolinas. In addition to its electric utilities, Duke Energy Corporation (NYSE:DUK) also provides natural gas services to 1.7 million customers in North Carolina, South Carolina, Tennessee, Ohio, and Kentucky.
On November 7, Duke Energy Corporation (NYSE:DUK) announced its earnings for the Q3 ending September 30, 2024. The company reported total operating revenues of $8.15 billion, reflecting a 2% increase compared to $7.99 billion in the same period last year.
The Regulated Electric unit, which is the company’s primary revenue generator, saw operating revenues of $7.78 billion, a 1.8% year-over-year growth in Q3. This unit contributed 95.4% of the total revenue for the quarter. In terms of electric energy sources, Duke Energy Corporation (NYSE:DUK) generated a total of 72,732 gigawatt-hours (GWh) during the period, with nuclear energy accounting for 19,150 GWh of this total.
Duke Energy Corporation (NYSE:DUK) also plans to pursue an Early Site Permit (ESP) for advanced nuclear facilities, a step that would help them identify and secure potential locations for these reactors well in advance. By obtaining an ESP, the company can streamline future licensing processes for new nuclear plants.
9. PG&E Corporation (NYSE:PCG)
Upside Potential: 10.69%
PG&E Corporation (NYSE:PCG) is an energy company in California that serves over 16 million people through its subsidiary, Pacific Gas & Electric Company. In 2023, PG&E Corporation (NYSE:PCG) achieved a 100% clean energy milestone, powered by a mix of 53% nuclear energy, 34% from alternative sources such as wind and solar, and 13% from large hydroelectric power.
PG&E Corporation (NYSE:PCG) owns the Diablo Canyon Nuclear Power Plant, which sits on approximately 1,000 acres on the Pacific coast. The Diablo Canyon Nuclear Power Plant contains two Westinghouse Pressurized Water Reactor (PWR) units and is California’s largest source of clean energy and generates 2,200 megawatts of baseline electricity, providing approximately 17% of zero-carbon electricity supply and 8.6% of the state’s total electricity supply.
The Diablo Canyon Nuclear Power Plant’s two units were scheduled for retirement in November 2024 and August 2025. However, the California Public Utilities Commission granted a five-year license extension, which allows PG&E Corporation (NYSE:PCG) to operate Unit 1 until October 31, 2029, and Unit 2 until October 31, 2030, while the Nuclear Regulatory Commission considers the 20-year extensions for the reactors.
In October, the Nuclear Regulatory Commission published a generic environmental impact statement for license renewal of Diablo Canyon Nuclear Power Plant, that concluded that the plant would have no major environmental impacts. Based on the analysis, the Nuclear Regulatory Commission recommended that the renewed licenses be issued, finding that the adverse environmental impacts of license renewal are not significant enough to outweigh the benefits of preserving the option of license renewal for energy-planning decision-makers.
On November 1, the Nuclear Regulatory Commission announced that it is seeking public comment on a draft supplemental environmental impact statement for the license renewal of the Diablo Canyon Nuclear Power Plant. The deadline for submitting comments is December 16.
8. DTE Energy Company (NYSE:DTE)
Upside Potential: 13.91%
DTE Energy Company (NYSE:DTE) is a diversified energy company involved in the development and management of energy-related businesses including nuclear power plants. The company’s electric segment serves 2.3 million customers in Southeast Michigan with an 11,084-megawatt system capacity, whereas the natural gas segment serves 1.3 million customers in Michigan.
DTE Energy Company’s (NYSE:DTE) Fermi 2 nuclear power plant produces around 1,100 megawatts and electricity and represents 30% of Michigan’s total nuclear generation capacity. The Fermi 2 nuclear power plant is known as one of the best-performing nuclear facilities in the United States.
On October 24, DTE Energy Company (NYSE:DTE) reported its third quarter 2024 earnings for the three months ended on September 30. The company reported earnings of $477 million compared to $332 million for the same period last year. The company invested over $3 billion so far this year and is on track to invest over $4 billion in 2024. This investment will not only improve electric reliability but also transform its power generation.
Furthermore, DTE Energy Company (NYSE:DTE) is investing in smart grid technology and new substations that will improve electric reliability and reduce costs in the long run. This operational efficiency will enable the company to maintain a competitive edge in the market.
7. Brookfield Renewable Partners (NYSE:BEP)
Upside Potential: 14.98%
Brookfield Renewable Partners (NYSE:BEP) is a global leader in renewable energy and sustainable solutions, operating one of the world’s largest publicly traded platforms for clean energy. The company owns a diverse portfolio of hydroelectric, wind, solar, and storage facilities spanning four continents, including North America, South America, Europe, and Asia with an operating capacity of over 34,000 megawatts. It also owns a 51% stake in Westinghouse Electric Company, which is a leading global nuclear services business that supplies nuclear fuel for various nuclear reactor types, including Pressurized Water Reactor (PWR), Boiling Water Reactor (BWR), Advanced Gas-cooled Reactor (AGR) and Water-water Energy Reactor (VVER).
On November 4, Westinghouse Electric Company, in partnership with Hyundai Engineering & Construction and Bulgaria’s Kozloduy NPP – New Build EAD, signed a significant Engineering Services Contract for the construction of two AP1000 reactors at the Kozloduy site in Bulgaria along with support for licensing and permitting, project planning, and operations and maintenance development.
The AP1000 reactor is the most advanced Generation III+ nuclear reactor available today, and the contract marks a significant step forward in the development of the project. The work outlined in the 12-month contract will begin immediately and is expected to pave the way for the construction of the reactors.
6. NextEra Energy, Inc. (NYSE:NEE)
Upside Potential: 16.04%
NextEra Energy, Inc. (NYSE:NEE) is one of the largest producers of renewable energy and a leading player in the nuclear energy industry, operating one of the largest nuclear power fleets in the United States. NextEra Energy, Inc.’s (NYSE:NEE) nuclear facilities in Wisconsin and New Hampshire, include the Point Beach Nuclear Energy Center and Seabrook Station.
The company’s Point Beach facility in Wisconsin produces about 1,200 megawatts of power, which is around one-sixth of Florida’s electricity. Whereas, Seabrook Station generates over 1,250 megawatts of electricity. NextEra Energy, Inc.’s (NYSE:NEE) Duane Arnold Energy Center, Iowa’s only nuclear power plant, located northeast of Palo, Iowa ceased operations in August 2020 after serving for 45 years. In Q3, NextEra Energy, Inc. (NYSE:NEE) announced that the company is considering restarting Duane Arnold nuclear plant in response to increasing demand from data centers.
During the Q3 earnings call, John Ketchum, Chairman, President, and CEO of NextEra Energy, Inc. (NYSE:NEE), noted that Duane Arnold, a 601 MW boiling water reactor (BWR), is generally less complex and costly to recommission than pressurized water reactors (PWRs). The company expects to pursue this project at an attractive cost with minimal risk. NextEra Energy, Inc. (NYSE:NEE) is currently conducting engineering assessments and coordinating with the U.S. Nuclear Regulatory Commission on a possible restart due to significant interest from data center clients.
5. Constellation Energy Corporation (NASDAQ:CEG)
Upside Potential: 17.08%
Constellation Energy Corporation (NASDAQ:CEG) is one of the largest producers of carbon-free energy in the United States. The company powers more than 20 million homes and businesses with more than 32,400 megawatts of capacity. Around 90% of Constellation Energy Corporation’s (NASDAQ:CEG) annual output is carbon-free. Constellation Energy Corporation (NASDAQ:CEG) is a key player in nuclear power and operates one of the largest fleets of nuclear plants in the United States.
On September 20, Constellation Energy Corporation (NASDAQ:CEG) signed a 20-year power purchase agreement with Microsoft that will pave the way for the restart of Three Mile Island Unit 1, a nuclear power plant that was shut down in 2019 due to economic reasons. The Three Mile Island plant is being renamed as Crane Clean Energy Center.
The agreement is Constellation Energy Corporation’s (NASDAQ:CEG) largest-ever power purchase agreement and will add approximately 835 megawatts of carbon-free energy to the grid. The project is expected to be online in 2028 and will operate for at least 20 years.
On October 16, Reuters reported that Constellation Energy Corporation (NASDAQ:CEG) has ordered a main power transformer for the Three Mile Island nuclear reactor, the transformer is expected to cost around $100 million and is the largest single piece of equipment that needs to be replaced for the plant’s revival.
The restart of this nuclear power plant has received strong public support, according to a recent statewide poll conducted by Susquehanna Polling & Research, 70% of Pennsylvanians favor the continued use of nuclear energy as a source of reliable, carbon-free energy.
4. NexGen Energy Ltd. (NYSE:NXE)
Upside Potential: 25.46%
NexGen Energy Ltd. (NYSE:NXE) is a uranium development company that explores, develops, and acquires uranium properties for nuclear power. The company is focused on high-grade deposits in Canada. The company’s flagship project, the Rook I, located in Southwestern Saskatchewan is the largest development-stage uranium project in Canada and is known for the largest low-cost uranium mine globally.
On November 12, NexGen Energy Ltd. (NYSE:NXE) announced the successful completion of its 2024 drilling campaign on Rook I at Patterson Corridor East (PCE). The campaign consisted of 46 drill holes and over 34,000 meters of drilling, however, upon the initial discovery of intense uranium mineralization, the company directed all drilling activity to focus exclusively on 30 holes in PCE.
NexGen Energy Ltd. (NYSE:NXE) reported that 19 of the 30 holes intersected mineralization, with 10 holes containing multiple intervals of high-grade uranium. Notably, drill hole RK-24-222, a 17-meter wide vein returned the highest-grade results, with multiple occurrences of off-scale high-intensity uranium intervals exceeding 61,000 counts per second (cps). Additionally, RK-24-220 and -223 intersected mineralization of up to 41,000 cps and 40,000 cps, respectively.
The program has confirmed a high-grade sub-domain within the mineralized zone. This concentrated effort on PCE has significantly expanded the company’s exploration portfolio, adding substantial potential to the company’s assets. Further drilling and assays are expected to be reported in Q4 2024 and Q1 2025, with an even larger program planned for January 2025 to explore additional high-grade potential at PCE.
3. Centrus Energy Corp (NYSEAMERICAN:LEU)
Upside Potential: 26.26%
Centrus Energy Corp (NYSEAMERICAN:LEU) provides nuclear fuel and related services to utility companies worldwide. Since 1998, Centrus Energy Corp (NYSEAMERICAN:LEU) has delivered more than 1,750 reactor years of fuel, which is equivalent to 7 billion tons of coal.
On October 17, Centrus Energy Corp (NYSEAMERICAN:LEU) announced that its subsidiary, American Centrifuge Operating, LLC, (ACO) has been awarded a contract by the U.S. Department of Energy to expand domestic commercial production of HALEU. This award is part of a larger effort to restore a robust, American-owned uranium enrichment capability to power the future of nuclear energy.
ACO is one of four awardees being awarded the contract, which has a minimum value of $2 million and a maximum value of $2.7 billion over a ten-year period, although the ultimate dollar amount will depend on subsequent task orders issued by the Department of Energy. ACO will manufacture the necessary centrifuges and equipment in the United States, relying on a domestic supply chain.
This award is significant because HALEU is a critical component of many next-generation nuclear reactor designs currently under development. By expanding domestic production of HALEU, Centrus Energy Corp (NYSEAMERICAN:LEU) is helping to meet the needs of the advanced nuclear industry and support the growth of nuclear energy in the United States.
On October 8, ACO was also selected by the U.S. Department of Energy to support the deployment of technology and equipment to deconvert HALEU from uranium hexafluoride (UF6) to uranium oxide and/or uranium metal forms. ACO was one of six awardees announced for deconversion, with a minimum contract value of $2 million and a maximum value for all awardees of $800 million.
2. Energy Fuels Inc. (NYSEAMERICAN:UUUU)
Upside Potential: 41.59%
Energy Fuels Inc. (NYSEAMERICAN:UUUU) is a leading uranium mining company that provides nuclear fuel for power plants around the world. The company operates several uranium mines in Colorado, Utah, and Wyoming. Energy Fuels Inc. (NYSEAMERICAN:UUUU) also operates a milling facility that processes the uranium ore.
On October 31, Energy Fuels Inc. (NYSEAMERICAN:UUUU) reported its financial results for the quarter ended September 30. The company’s uranium sales generated $4 million in revenue, with a gross profit of $2.15 million and a gross margin of 54%. As of September 30, Energy Fuels Inc. (NYSEAMERICAN:UUUU) has a total of 1,040,000 pounds of U3O8 in inventory, including 235,000 pounds of finished U3O8 and 805,000 pounds of U3O8 in ore and raw materials. The increase in inventory resulted from production from the Pinyon Plain, La Sal, and Pandora mines, as well as additional alternate feed materials.
Energy Fuels Inc. (NYSEAMERICAN:UUUU) is expecting to ramp up production to 1.1 to 1.4 million pounds of U3O8 per year by late 2024 and expects to produce a total of 150,000 to 200,000 pounds of finished U3O8 during 2024, using from stockpiled feed materials and newly mined ore.
Mining continues at the Pinyon Plain mine, with mined ore being stockpiled at the mine site, containing approximately 180,000 pounds of U3O8 on September 30, 2024, which is expected to be processed at the Mill later in 2024 or in early 2025.
Energy Fuels Inc. (NYSEAMERICAN:UUUU) is also advancing its permitting and pre-development activities on its Roca Honda, Bullfrog, and Sheep Mountain uranium projects, which have the potential to expand the company’s uranium production to a run-rate of up to five million pounds of U3O8 per year in the coming years.
1. Uranium Energy Corp. (NYSEAMERICAN:UEC)
Upside Potential: 41.84%
Uranium Energy Corp. (NYSEAMERICAN:UEC) is one of the largest and fastest-growing uranium mining and exploration companies, with operations focused on the United States. Uranium Energy Corp. (NYSEAMERICAN:UEC) is a debt-free company with a significant inventory of uranium.
On October 17, Uranium Energy Corp. (NYSEAMERICAN:UEC) announced a significant milestone in its growth strategy, receiving approval to increase the licensed production capacity at its Irigaray Central Processing Plant to 4 million pounds of U3O8 annually. The Irigaray Plant is a critical component of Uranium Energy Corp.’s (NYSEAMERICAN:UEC) hub-and-spoke production strategy in the Powder River Basin of Wyoming, supporting four of the company’s fully permitted uranium in-situ recovery (ISR) satellite projects in the area.
Earlier on September 23, Uranium Energy Corp. (NYSEAMERICAN:UEC) also announced that it has reached an agreement with Rio Tinto America Inc. to acquire 100% of Rio Tinto’s Wyoming assets. The acquisition includes the fully licensed Sweetwater Plant, which is a major uranium processing facility, as well as a portfolio of uranium mining projects that contain approximately 175 million pounds of resources.
With the acquisition of Rio Tinto’s Wyoming assets expected to close soon, Uranium Energy Corp. (NYSEAMERICAN:UEC) will have a combined licensed production capacity of 12.1 million pounds of U3O8 per year.
Uranium Energy Corp.’s (NYSEAMERICAN:UEC) growth strategy is well-timed, given the increasing demand for uranium from stable domestic sources. The company’s CEO, Amir Adnani, notes that big tech companies such as Amazon, Google, Microsoft, and Oracle are making significant financial commitments to nuclear energy to power their data centers, reflecting the realization that nuclear energy provides safe, highly reliable, economic, and clean energy. This trend is expected to drive up demand for uranium, and Uranium Energy Corp. (NYSEAMERICAN:UEC) is well-positioned to benefit from this trend.
While we acknowledge the potential of Uranium Energy Corp. (NYSEAMERICAN:UEC) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than UEC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
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