Nuclear energy is emerging as a critical solution due to a surge in global energy demand and the push for cleaner alternatives. While solar, wind and hydrogen have merits, they struggle to fully replace fossil fuels due to scalability challenges. Nuclear power, on the other hand, offers a reliable, high-capacity solution that could bridge the supply-demand gap and drive the transition to a greener future.
This growing importance of nuclear energy has also made it an attractive theme for investors seeking long-term opportunities. Stocks like Constellation Energy Corporation CEG, Dominion Energy D and NexGen Energy Ltd. NXE are gaining traction, making them strong contenders for any investment portfolio. But before diving into these picks, let’s take a closer look at why nuclear energy is becoming an essential part of the global energy mix.
Nuclear energy generates electricity through atomic reactions, offering a steady, emission-free power source. Unlike solar and wind, which are weather-dependent, nuclear plants operate at near-full capacity, making them indispensable for critical sectors like hospitals, data centers and energy-intensive technologies such as artificial intelligence and Blockchain. As countries worldwide work toward achieving ambitious net-zero goals, nuclear energy is increasingly seen as a cornerstone of the transition.
The global nuclear power market was valued at $38.84 billion in 2024 and is projected to reach $44.71 billion by 2029, fueled by significant investments, including $7 billion in nuclear fusion in 2024. The International Atomic Energy Agency (IAEA) forecasts a potential 2.5x increase in global nuclear capacity by 2050, highlighting its importance as energy demand is expected to keep rising. With renewables facing scalability challenges, nuclear energy provides a reliable solution for energy security amid geopolitical and environmental uncertainties.
Recent technological advancements, increasing demand from sectors like AI and electric vehicles, and supportive policies are accelerating nuclear energy’s growth. Government incentives, such as U.S. tax credits for nuclear plants producing clean hydrogen, are accelerating growth. High-profile investments by leaders like Microsoft MSFT and Nvidia NVDA highlight nuclear energy's potential to power next-generation technologies. Projections from the International Energy Agency (IEA) suggest that nuclear investments need to exceed $150 billion by 2030 to align with net-zero goals, reinforcing the sector's bright future.
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3 Nuclear Energy Stocks to Buy Now
Constellation Energy is the largest nuclear power plant operator in the United States, producing about 10% of the nation’s total clean energy. With a fleet of over 20 nuclear reactors spread across the Midwest, Mid-Atlantic, and Northeast, the company plays a crucial role in providing stable, carbon-free electricity. Its extensive nuclear capacity makes it a key player in meeting rising energy demands, particularly for data centers and other high-consumption industries. As the largest operator of merchant nuclear plants, Constellation’s geographic reach and operational scale give it a competitive edge that is difficult to replicate.
Beyond power generation, Constellation Energy has taken proactive steps to secure long-term access to nuclear fuel. The company has established multiple uranium supply contracts extending into the 2030s, ensuring continued fuel availability amid geopolitical uncertainties. Additionally, Constellation is actively retrofitting its existing nuclear plants, allowing them to operate efficiently for decades to come. With a fleetwide capacity factor exceeding 94% — significantly above the industry average — the company has demonstrated consistent reliability. As demand for clean energy accelerates, Constellation’s ability to provide uninterrupted, zero-carbon electricity further strengthens its position in the nuclear sector.
Looking ahead, Constellation Energy is investing in expanding its nuclear capacity to meet the growing energy needs. The Zacks Rank #2 (Buy) company plans to upgrade its existing plants, potentially adding up to one gigawatt of new clean energy capacity over the next decade. Additionally, it is exploring next-generation nuclear technologies, which could enhance efficiency and sustainability.
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Dominion Energy is a leading player in the U.S. nuclear power sector, operating one of the five largest nuclear portfolios in the country. Its key nuclear assets include North Anna and Surry in Virginia, as well as VC Summer in South Carolina, all operating within a regulated framework. Additionally, the company owns Millstone Power Station in Connecticut, a nearly 2-gigawatt unregulated facility that supplies over 90% of the state’s carbon-free electricity. With over 50 years of safe nuclear operations, Dominion continues to expand its nuclear capabilities to meet growing energy demands while ensuring long-term reliability and stability.
The company is actively investing in the future of nuclear energy, particularly through the exploration of Small Modular Reactor (SMR) technology. In October 2024, Dominion signed a memorandum of understanding (MOU) with Amazon AMZN to assess the feasibility of deploying SMRs at its North Anna facility in Virginia. As AI-driven data centers rapidly increase electricity consumption, Dominion’s nuclear power assets offer a scalable, around-the-clock, zero-carbon solution to support this surge in demand. The company is also in discussions with other major energy consumers to expand SMR adoption, further positioning itself as a key enabler of next-generation nuclear energy solutions.
Virginia’s emergence as the world’s largest data center hub presents a major growth opportunity for Dominion. The #2 Ranked company is currently evaluating around 8 gigawatts of new data center demand in engineering stages, with an additional 6 gigawatts already in construction. This surging need for stable, emissions-free power makes Dominion’s nuclear assets a crucial part of the region’s energy landscape. Meanwhile, long-term fixed-price contracts, such as those securing Millstone’s output through 2029, provide Dominion with predictable revenues and financial stability.
NexGen Energy is a Canadian uranium development company focused on advancing its flagship Rook I Project in Saskatchewan. Recognized as the largest development-stage uranium deposit in Canada, Rook I is positioned to become the world’s most cost-efficient uranium mine. With nuclear energy gaining traction as a reliable and low-carbon power source, NexGen is well-placed to meet rising demand. The company’s focus on high-grade uranium deposits and sustainable mining practices underscores its strategic importance in the global energy transition.
In a major milestone, NexGen secured its first uranium offtake agreements, committing to supply 1 million pounds annually from 2029 to 2033. These contracts, incorporating market-based pricing, validate confidence in the Rook I Project and provide financial stability while allowing the company to benefit from rising uranium prices. With global nuclear energy expansion driving demand, NexGen is positioned as a key supplier of secure, Western-based uranium. Its agreements with multiple U.S. utilities reinforce its role in diversifying nuclear fuel supply chains amid shifting geopolitical dynamics.
Once fully operational, NexGen’s Arrow Deposit within Rook I is projected to produce nearly 30 million pounds of uranium per year—around 25% of today’s global supply. This massive output could triple Canada’s uranium production, elevating NexGen to a dominant position in the nuclear fuel market. Given Western nations’ push to reduce dependence on Russian uranium, the Zacks Rank #2 company’s Canadian assets provide a stable and geopolitically secure supply source.
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