Best Nuclear Stocks to Power AI, According to This Portfolio Manager

The demand for electricity is slated to grow in the U.S. for the first time in decades, partly due to the electrification of transportation and the proliferation of AI data centers, TCW portfolio manager Eli Horton said recently. Indeed, power demand may double over the next 25 years, he reported.

Amid this rising use of electricity and a desire to reduce carbon emissions, nuclear power has become very desirable, while the demand for nuclear power should continue to be strong in upcoming years, the analyst stated.

An aerial view of a nuclear plant, its domes casting a unique shadow.

Horton’s firm owns the shares of Vistra (VST) and Constellation (CEG) which are two of the largest producers of nuclear power in the U.S., he reported. TCW also owns GE Vernova (GEV) whose joint venture with Hitachi, GE Hitachit Nuclear Energy, provides nuclear reactors and fuel. GE Vernova also markets services and equipment for other types of power generation, Horton stated.

Because few nuclear plants have been added in recent decades, the supply of nuclear power is low, Horton explained. Moreover, few new plants are likely to be added anytime soon in the U.S., he stated.

While we acknowledge the potential of VST, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than VST but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ ALSO 10 Best Nuclear Energy Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

Disclosure: None. This article is originally published at Insider Monkey.