3 Stocks to Buy to Ride the Nuclear Power Renaissance

A recent executive order from President Trump aims to revitalize the nuclear energy sector by streamlining regulations and promoting new reactor development, potentially benefiting companies like NuScale Power (SMR), Constellation Energy (CEG), and Cameco (CCJ). NuScale Power anticipates a decision on a major SMR deal in 2025, while Constellation Energy is expanding its clean energy operations, including nuclear, with long-term power purchase agreements. Cameco, a leading uranium producer, stands to gain from increased uranium demand as nuclear capacity expands, already noting increased long-term contracting activity.

Analysis

President Trump's recent executive order aimed at streamlining the Nuclear Regulatory Commission and accelerating the development of new nuclear power reactors signals a significant potential catalyst for the U.S. nuclear energy sector, with a stated goal to quadruple nuclear capacity by 2050. This policy shift could foster a renaissance for companies including NuScale Power (SMR), Constellation Energy (CEG), and Cameco (CCJ). NuScale Power, whose stock reached all-time highs following the announcement, is developing small modular reactors (SMRs) touted as cheaper and quicker to deploy; however, the company faces considerable execution risk as it has yet to commercialize its product, with a pivotal decision from Romanian utility RoPower on a six-SMR order anticipated in late 2025. Constellation Energy, the nation's leading nuclear power producer with 22.1 GW of capacity, stands to benefit from increased demand and its strategy of long-term, fixed-rate power purchase agreements. The company is actively expanding its clean energy portfolio, evidenced by its deal with Microsoft to support the restart of its Three Mile Island Unit 1 nuclear plant by 2028 and its ongoing acquisition of Calpine, projecting over 13% compound annual growth in adjusted operating earnings through 2030 on a standalone basis. On the supply side, uranium producer Cameco (CCJ) is poised to capitalize on rising uranium demand, with the company estimating that approximately 70% of global uranium fuel requirements through 2045 remain uncovered. Cameco's outlook is further bolstered by an observed uptick in long-term uranium contracting activity and its 49% stake in Westinghouse Electric, a key supplier of nuclear technology and services; the company also maintains a consistent dividend, which was increased by 33% last year.

Key Decisions for Investors

• Given the supportive executive order, investors should consider evaluating established nuclear operators like Constellation Energy (CEG) and key uranium suppliers such as Cameco (CCJ), which exhibit strong fundamentals and clear growth trajectories within the revitalized sector.
• For speculative, pre-commercial entities like NuScale Power (SMR), it is prudent to closely monitor upcoming catalysts, such as the RoPower SMR contract decision in late 2025, and weigh the significant execution risks against the potential for high returns.
• Investors should track the materialization of increased uranium demand into long-term contracts for Cameco (CCJ) and the successful execution of Constellation Energy's (CEG) clean energy expansion projects, including the Three Mile Island restart and Calpine integration, to validate their growth narratives.