AI Demand Sparks Opportunities for These 3 Nuclear Energy Leaders

Key Points

• Nuclear energy demand is skyrocketing thanks to AI needs and interest in clean energy, among other factors.
• Companies positioned to benefit include both established players like Cameco as well as riskier up-and-comers like Oklo and NANO Nuclear Energy.
• Trends to watch for in the space include the advent of modular microreactors and ongoing geopolitical tensions with Russia, which is traditionally a major provider of enriched uranium.

2025 appears poised to be a banner year for nuclear energy companies. Demand for energy has never been higher—the U.S. Energy Information Administration estimated that the United States' total power demand for 2024 was 4.1 trillion kilowatt-hours (kWh), a record, and estimates for 2025 are even larger. Beyond that, demand is especially high for clean energy sources that have a minimal negative impact on the climate, and nuclear energy fits that bill well.

There are even more reasons to be excited about nuclear stocks in 2025: companies finally have clarity on clean hydrogen production tax credits outlined in the Inflation Reduction Act of 2022, and nuclear companies stand to benefit; Congress banned in 2024 enriched uranium imports from Russia, a major supplier, further incentivizing domestic companies; and microreactor technology is thriving, potentially shortening the runway to clean energy solutions for remote areas and other underserved populations.

Amid all of this, the AI boom is a major driver of interest in nuclear energy. AI energy demands are skyrocketing and could require 14 gigawatts of new power by 2030; in some cases AI energy demands are projected to reach a third of a country's total energy requirements by as early as next year. Though investors could certainly search for a targeted nuclear-themed ETF like the VanEck Uranium and Nuclear ETF NYSEARCA: NLR, three companies in particular may be worth watching at this time.

Oklo: Catering to Data Center Clientele, With Agreements to Prove It

If it seems that Oklo Inc. NYSE: OKLO is tailor-made to the needs of AI companies, it may be no surprise that the board chair of this nuclear firm is OpenAI leader Sam Altman. Oklo's modular reactors specialize in producing low-carbon, continuous energy that exactly matches the needs of AI firms looking to power data centers. The company is on track to be among the very first nuclear outfits to bring its small modular reactors to market.

Data center providers are listening. In December 2024, Oklo announced that it had signed a non-binding agreement to provide a total capacity of 12 gigawatts of power to Las Vegas data center operator Switch through 2044.

Oklo remains small, with a market capitalization of just $3.0 billion as of January 16, 2025. Still, shares have already risen rapidly, climbing by more than 128% in the year leading to that date. Should deals like the one with Switch continue to come through, that could help to push Oklo shares even higher.

Cameco: Advantageous Position and Investments

Cameco Corp. NYSE: CCJ is the largest publicly-traded uranium company at a market capitalization of more than $21.5 billion as of January 16, 2025. With the recent movement toward increased uranium enrichment capacity in the United States by the Department of Energy, Cameco stands poised to benefit.

It is unclear how the U.S. government's policies toward nuclear energy may change with a new administration, but Cameco's substantial reserves and significant production capacity should ensure that it remains competitive regardless. The company also has strategic investments including a 49% stake in nuclear plant technology company Westinghouse, allowing it a clear path to help streamline operations and potentially boost revenue.

Analysts are optimistic about Cameco, with all seven analyst ratings of the firm recorded as Buy and upside potential of nearly 35% as of January 16, 2025.

NANO Nuclear Energy: Up-and-Comer With Microreactor Focus

NANO Nuclear Energy Inc. NASDAQ: NNE is a small up-and-coming nuclear firm founded just three years ago. With a market capitalization of about $857 million, it is substantially smaller than many other players in the field. A pre-revenue firm, it is a riskier bet than an established nuclear company like Vistra Corp. NYSE: VST.

However, NANO's developments in the microreactor space, mentioned above, may warrant a closer look for investors with a higher risk tolerance. Further, NANO is strengthening its position in this subindustry, having in mid-January completed a purchase of undisclosed assets related to the modular nuclear reactor business of Ultra Safe Nuclear Corp. Two analysts have rated NANO a Buy and assigned it a consensus price target of $58.00, nearly 148% above current levels as of January 16.