AI's Nuclear Energy Surge: 3 Stocks for Long-Term Gains

Ever since the term "GPT" started making waves, tech giants have been gobbling up electricity at an unprecedented rate to power their AI ambitions. Microsoft, Amazon, and Meta have all made significant investments in clean energy, recognizing the importance of nuclear power in meeting their growing energy demands. But how can retail investors get in on the action? Here are three energy stocks poised to benefit from AI's nuclear energy surge.



1. Constellation Energy (CEG)
As the largest clean-energy producer in the U.S., Constellation Energy generates 86% of its output from nuclear, supplying about 10% of the nation's clean energy. With the growing demand for carbon-free nuclear power, CEG is one solid stock to own to capitalize on this trend. Microsoft recently signed a 20-year power purchase agreement with CEG, which includes the prospect of restarting Three Mile Island Unit 1. This strategic partnership ensures a consistent revenue stream for CEG, making it a stable and predictable investment.

2. Cameco (CCJ)
Cameco is one of the largest publicly traded companies in the uranium industry, with significant mining operations in Saskatchewan and the United States. It also holds a 40% interest in a joint venture with Kazatomprom in Kazakhstan and a 49% stake in Westinghouse Electric with Brookfield Renewable Partners. As uranium prices continue to rise, driven by increasing demand and tight supplies, CCJ is well-positioned to benefit from this trend. The company is set to produce 23.1 million pounds of uranium this year, further securing its position as a leading uranium supplier.



3. NuScale Power (SMR)
One of the most promising developments in nuclear energy is small modular reactors (SMRs). NuScale Power is the only company to secure Standard Design Approval from the U.S. Nuclear Regulatory Commission for its 50-megawatt SMR. This innovative technology offers a modular and scalable approach to nuclear energy, making it an ideal choice to meet the power needs of remote areas or high-demand industrial and data center facilities. Although the deployment of SMR technology is still years away, NuScale's innovative solution positions it for long-term growth in the AI-driven data center market.

So, why should you invest in these nuclear energy stocks? AI's energy demands are surging, making nuclear power an attractive option. These stocks not only contribute to a balanced portfolio but also address external factors like geopolitical tensions and labor market dynamics. By diversifying energy sources and investing in technologies that enhance efficiency and reliability, these companies can mitigate risks and maximize returns. As an experienced English essay writing consultant, I encourage you to consider these under-owned sectors and strategic acquisitions for organic growth.