In this article, we will discuss the 10 nuclear energy stocks that billionaires are loading up on. To skip the details about the nuclear energy industry and upcoming technologies, you can skip to the 5 Nuclear Energy Stocks Billionaires Are Loading Up On.
Nuclear energy accounts for 10% of the global electricity generation. Nuclear energy is a much cleaner source of energy and it has helped avoid over 60 gigatons or 20% of the global carbon emissions in the last 50 years. Despite being relatively environmentally friendly, energy production through nuclear fission is costly. Recently, scientists have made a breakthrough in nuclear fusion. Nuclear fusion is the process of joining lighter atoms to form a heavier one. The process creates more energy than a nuclear fission reaction and costs significantly less.
Fusion Industry Association believes that the first fusion power plant will be operational by 2030. On the other hand, a notable nuclear fusion startup, Helion Energy, claims that it will commercialize the first nuclear power plant by 2028. On May 10, the company announced its power purchase agreement with Microsoft Corporation (NASDAQ:MSFT) for the world’s first commercial fusion generator, which is expected to provide at least 50 megawatts of power.
China has also started to take an interest in nuclear fusion start-ups. The Chinese auto manufacturer, NIO Inc. (NYSE:NIO) has invested in a nuclear fusion start-up, Neo Fusion, for research and development of nuclear fusion for commercial uses. In 2022, the nuclear fusion start-ups collected more than $2.8 billion in new private investment, bringing the total to $4.7 billion. Alphabet Inc. (NASDAQ:GOOG) and Chevron Corporation (NYSE:CVX) were also some of the names that invested in the research and development of this new technology. Both were part of a $250 million funding raise for TAE Technologies in July 2022.
On May 31, the Department of Energy also announced $46 million in funding to eight fusion development companies. The US Secretary of Energy, Jennifer Granholm said:
“We have generated energy by drawing power from the sun above us. Fusion offers the potential to create the power of the sun right here on Earth […] The Biden-Harris Administration is committed to partnering with innovative researchers and companies across the country to take fusion energy past the lab and toward the grid.”
Two big names in oil and gas industry, Shell plc (NYSE:SHEL) and Equinor ASA (NYSE:EQNR), have backed up Commonwealth Fusion Systems and Zap Energy, respectively. Shell Ventures’ venture principal, Liliia Chechel, said that these investments are quite high-risk but also have the potential to bring a high-reward long term.
Nuclear Fission Energy Industry
Currently, nuclear fission energy is used all over the world. According to the Energy Information Administration, it accounted for 18.9% of the total electricity generation in the United States in 2021. The United States is the top nuclear energy producer in the world and the industry contributes $60 billion to the US GDP annually.
S&P Global reports that around 355 gigawatts will be added to the global nuclear capacity between 2022 and 2025, mostly in mainland China. However, the increase in nuclear capacity will be significantly offset by the retirements in North America and Europe. Between the forecasted period, the global nuclear capacity is expected to increase from 415 gigawatts to 555 gigawatts. The International Atomic Energy Agency (IAEA) predicts that by 2050, the nuclear generating capacity will increase to 873 gigawatts net electrical. By the end of the forecasted period, the IAEA believes that nuclear energy will account for 14% of global electricity generation.
In the first quarter of 2023, some billionaires were quite bullish on nuclear energy stocks.
Billionaire Ken Griffin’s Citadel Investment Group increased its stake in Equinor ASA (NYSE:EQNR) by 63986% and became the top hedge fund holder in the company while Steve Cohen’s Point72 Asset Management initiated a position in Equinor ASA (NYSE:EQNR) and was the second biggest stakeholder in the company. Ken Griffin’s and Steve Cohen’s firms have also been the most common names on our list as the former has made additional purchases or bought into six of these companies on the list while Steve Cohen’s firm has done the same in five of these companies.
Some of the most prominent nuclear energy companies that billionaires are loading up on are NextEra Energy, Inc. (NYSE:NEE), Constellation Energy Corporation (NASDAQ:CEG), and Cameco Corporation (NYSE:CCJ).
Our Methodology
For this article, we used Insider Monkey’s database of billionaire hedge fund managers and chose 10 nuclear energy companies they were buying into. These companies are directly involved in the nuclear energy industry and have ongoing operations, including operating nuclear reactors and mining uranium. We excluded the companies that still have nuclear projects under development. We listed the companies in ascending order of their hedge fund sentiment. The hedge fund data has been taken from Insider Monkey’s database of 943 elite hedge funds.
The mentioned companies in this article are ones that have ongoing nuclear operations. It does not include the ones that only have investments in nuclear fusion start-ups or any other kind of nuclear future. Hence, we did not mention companies like Equinor ASA (NYSE:EQNR) that billionaire-owned hedge funds are going crazy over.
Nuclear Energy Stocks Billionaires Are Loading Up On
10. Energy Fuels Inc. (NYSE:UUUU)
Number of Hedge Fund Holders: 11
Number of Billionaire Investors: 3
Energy Fuels Inc. (NYSE:UUUU) is a conventional uranium mining company. The company also engages in the production of vanadium and rare earth elements.
Billionaire Ken Griffin’s Citadel Investment Group added 30% to its previous quarter’s stake in Energy Fuels Inc. (NYSE:UUUU) and held 1.9 million shares worth $10.679 million in Q1 2023. Ken Griffin’s firm was also the largest stakeholder in the company in the first quarter. Israel Englander’s Millennium Management also initiated a small position in Energy Fuels Inc. (NYSE:UUUU) with 41,419 shares worth $231,000.
Energy Fuels Inc. (NYSE:UUUU) is also one of the most promising energy stocks according to analysts.
Along with Energy Fuels Inc. (NYSE:UUUU) , NextEra Energy, Inc. (NYSE:NEE), Constellation Energy Corporation (NASDAQ:CEG), and Cameco Corporation (NYSE:CCJ) are some of the noteworthy stocks that billionaires are loading up on.
9. Uranium Energy Corp. (NYSE:UEC)
Number of Hedge Fund Holders: 16
Number of Billionaire Investors: 5
Uranium Energy Corp. (NYSE:UEC) explores, extracts, and processes uranium and titanium concentrates. It operates in the United States, Canada, and Paraguay and has headquarters in Texas, USA.
In Q1 2023, Citadel Investment Group increased its holdings in Uranium Energy Corp. (NYSE:UEC) by 146% to 717,157 shares worth $2.065 million. Millennium Management and billionaire Paul Tudor Jones’ Tudor Investment Corp also initiated positions in the company with shares worth $1.166 million and $1.025 million, respectively.
8. Denison Mines Corp. (NYSE:DNN)
Number of Hedge Fund Holders: 16
Number of Billionaire Investors: 5
Denison Mines Corp. (NYSE:DNN) is a uranium mining company headquartered in Ontario, Canada. Steve Cohen’s firm Point72 Asset Management added the company to its portfolio in the first quarter of 2022. The firm bought over 6.22 million shares of Denison Mines Corp. (NYSE:DNN) worth $6.78 million, making it the most prominent hedge fund holder of the company.
Jim Simons’ Renaissance Technologies also upped its stake in the Denison Mines Corp. (NYSE:DNN) by 66% in the first quarter and held 650,760 shares of the company which is worth $741,866 at the time of writing. In the first quarter of 2023, 16 hedge funds held a stake in Denison Mines Corp. (NYSE:DNN) at a combined value of $24.3 million, compared to 14 worth $17.215 million in the previous quarter.
7. Public Service Enterprise Group Incorporated (NYSE:PEG)
Number of Hedge Fund Holders: 23
Number of Billionaire Investors: 9
Public Service Enterprise Group Incorporated (NYSE:PEG) is an energy company with a diversified portfolio that includes natural gas, oil, coal, solar, and nuclear power plants. The company fully operates three nuclear power plants and has a small stake in two others.
Point72 Asset Management and Element Capital Management initiated a position in Public Service Enterprise Group Incorporated (NYSE:PEG) in Q1 2023 with shares worth $41.081 million and $3.8 million, respectively. Furthermore, Matthew Hulsizer’s PEAK6 Capital Management increased its holdings in Public Service Enterprise Group Incorporated (NYSE:PEG) by 36% compared to Q4 2022.
Public Service Enterprise Group Incorporated (NYSE:PEG) was held by 23 hedge funds in Q1 2023.
6. Entergy Corporation (NYSE:ETR)
Number of Hedge Fund Holders: 25
Number of Billionaire Investors: 9
Entergy Corporation (NYSE:ETR) is a Louisiana-based electric power production company that operates in the Lower South of the United States. The company has a generation capacity of 24,000 megawatts which includes 5,000 megawatts from its five nuclear power plants.
Entergy Corporation’s (NYSE:ETR) stake was raised by 557% by Steve Cohen’s Point72 Asset Management and 2820% by D E Shaw in Q1. By the end of the first quarter, Cohen’s firm held 1.395 million shares of the company worth $150.308 million while D E Shaw owned 244,456 shares worth approximately $26.34 million. Cliff Asness’ AQR Capital Management also increased its holdings in Entergy Corporation (NYSE:ETR) by 181% to 137,653 shares worth $14.774 million. It is important to note that even though D E Shaw was founded and run by billionaire David E. Shaw, he no longer manages the firm. He remains involved in higher-level strategic decisions, but the firm’s day-to-day decisions are made by its executive committee.
Entergy Corporation (NYSE:ETR) is one of the nuclear energy stocks that billionaires are going crazy about along with NextEra Energy, Inc. (NYSE:NEE), Constellation Energy Corporation (NASDAQ:CEG), and Cameco Corporation (NYSE:CCJ).
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Disclosure. None. 10 Nuclear Energy Stocks Billionaires Are Loading Up On is originally published on Insider Monkey.
