Nuclear Energy Stocks to Watch: Cameco, Oklo, and NuScale Power

The US focus on onshoring AI capacity and footprint is driving investment in chipmaking and semiconductors. The surge in electricity demand from data centers may pave the way for alternative energy sources, fueling a long-term bull run for nuclear energy players like Cameco Corp., Oklo Inc., and NuScale Power Corp. Cameco stock has seen significant price action, trading at 96% of its 52-week high, and is expected to benefit from the growing importance of nuclear energy in the coming years.

The United States' focus on onshoring artificial intelligence (AI) capacity and footprint is driving significant investment in the chipmaking and semiconductor industries. This shift is creating a surge in electricity demand from data centers, which may pave the way for alternative energy sources, particularly nuclear energy. Companies like Cameco Corp (NYSE:CCJ), Oklo Inc (NYSE:OKLO), and NuScale Power Corp (NYSE:SMR) are poised to benefit from this trend, as they are major players in the nuclear energy sector.

Cameco stock has seen substantial price action, trading at 96% of its 52-week high, and is expected to benefit from the growing importance of nuclear energy in the coming years. According to the latest quarterly earnings results, Cameco reported EPS of $0.51, beating Wall Street expectations of $0.29. Analysts rate Cameco stock as a Buy, with a consensus price target of $82.6, representing roughly 6.6% upside from current prices. However, Royal Bank of Canada analyst Andrew Wong has an Outperform rating with an implied 42% upside in his $110 target [1].

Oklo Inc is another stock that has caught the attention of investors. While the company has not reported net income yet, its valuation multiples are significantly higher than its peers. Oklo's price-to-book (P/B) multiple of 35.9x is much higher than the average valuation of 4.0x for the energy sector. This premium reflects Oklo's focus on providing fusion power solutions, aligning with the U.S. administration's national security and domestic production objectives. Short interest in Oklo has also declined, indicating a potential shift in market sentiment [1].

NuScale Power Corp is another company that stands to benefit from the growing demand for nuclear energy. The company has developed designs and measures to secure new government and infrastructure contracts, which will be crucial as data centers increase their energy demands. NuScale's price-to-sales (P/S) ratio of 229.6x is significantly higher than its peers, indicating market optimism for future sales growth [1].

The NYSEARCA:NLR ETF has surged in 2025, driven by rising electricity demand from AI data centers, targeted U.S. government nuclear expansion policies, and renewed investment in uranium supply chains. The ETF has returned 47.89% year-to-date, boosted by $541 million in net inflows over the last three months. The ETF offers balanced exposure to uranium miners and nuclear operators, with Constellation Energy (CEG) as a key holding. CEG's acquisition of Calpine Corporation and its long-term contract with Microsoft to restart the Three Mile Island plant by 2027 are key drivers of the ETF's performance [2].

The intersection of AI-driven energy needs, aggressive U.S. nuclear expansion, and small modular reactor (SMR) adoption gives the nuclear sector a multi-year growth runway. The U.S. government's policy acceleration is removing key barriers to capacity expansion, positioning the country alongside pro-nuclear leaders like France and Japan. However, investors should be aware of risks such as capital intensity and interest rate sensitivity, which could pressure financing costs [2].

References:
[1] https://www.investing.com/analysis/data-centers-create-a-bull-case-for-these-nuclear-stocks-200665328
[2] https://www.tradingnews.com/news/nlr-etf-powers-47-89-percent-higher-on-ai-energy-demand-and-is-nuclear-expansion