Nuclear Energy Stocks Surge Amid AI Demand and Trump's Push for Deployment

Nuclear energy stocks have gained interest due to increasing electricity demand from data centers and the Trump administration's push for faster deployment and licensing of reactors. The renewed interest has led to an uptick in nuclear stock prices.

Nuclear energy stocks have been gaining attention in recent months, driven by a combination of factors including increasing electricity demand from data centers and the Trump administration's push to expedite the deployment and licensing of reactors. This renewed interest has led to an uptick in the prices of nuclear stocks.

The demand for electricity is projected to see a significant increase in the coming decades, with a 55% growth expected over the next 20 years [2]. This growth is primarily driven by artificial intelligence (AI) and data centers, which are projected to see a 300% increase in demand over the next decade, and electric vehicles (EVs), which are expected to increase electricity demand by 9,000% by 2050 [2]. This surge in demand is set to benefit utility stocks, which have traditionally been considered safe and boring investments, but now present under-the-radar opportunities for growth [2].

Among the nuclear energy stocks, NextEra Energy (NYSE: NEE) stands out. NextEra owns the largest utility in the state of Florida and has increased its dividend at a rapid 10% annualized clip over the past decade. The company also owns solar and wind power assets, providing a growth platform alongside its regulated utility business [2]. Other notable nuclear energy companies include The Southern Company (NYSE: SO), Duke Energy (NYSE: DUK), and Dominion Energy (NYSE: D), all of which have shown potential for growth due to their focus on nuclear power and clean energy [2].

Investors looking to diversify their portfolios with utility stocks should consider the Vanguard Utilities Index Fund ETF (NYSEMKT: VPU), which offers exposure to the entire utility sector in a diversified manner [2]. Additionally, companies like Black Hills Corporation (NYSE: BKH) and Constellation Energy Corporation (NASDAQ: CEG) offer attractive dividend yields and growth potential [2].

In conclusion, the renewed interest in nuclear energy stocks is a result of the increasing electricity demand from data centers and the government's push for faster deployment of reactors. Investors should consider these factors when evaluating potential investments in the nuclear energy sector.

References:
[1] https://seekingalpha.com/news/4466373-sa-sentiment-nuclear-energy-stocks
[2] https://www.mitrade.com/insights/news/live-news/article-8-942373-20250708