Watch 5 Nuclear Energy Stocks Set to Surge on Huge Data Center Growth

Driven by surging energy demand from AI data centers, nuclear energy stocks are gaining momentum, with the U.S. Department of Energy projecting a doubling or tripling of data center energy usage by 2028. Recent executive orders aim to increase U.S. nuclear capacity to 400 GW by 2050, prioritizing domestic uranium supply and encouraging reactor construction near military installations and AI hubs. Zacks highlights five stocks poised to benefit: CEG, which has secured deals with Microsoft and Meta; VST, which is expanding its nuclear operations; MIR, which provides critical radiation safety technologies; BWXT, which manufactures nuclear components; and CCJ, a major uranium producer.

Analysis

The nuclear energy sector is experiencing a significant resurgence, primarily fueled by the escalating energy demands of artificial intelligence (AI) data centers; the article cites a U.S. Department of Energy report from December 2024 projecting data center energy usage to potentially double or triple by 2028. This demand is further supported by U.S. policy initiatives, as the article reports that executive orders signed on May 23 by President Donald Trump aim to expand domestic nuclear capacity from 100 GW to 400 GW by 2050, prioritizing domestic uranium supply and reactor construction near AI hubs and military installations. Five nuclear-centric stocks are identified as key beneficiaries: Constellation Energy (CEG), a Zacks Rank #3 (Hold), is leveraging its leading position through a $5.1 billion capital expenditure program, the acquisition of a 2,645 MW nuclear plant stake, and significant long-term deals, including a $1.6 billion investment with Microsoft to revive the Three Mile Island plant (dormant since 2019) and another with Meta for its Illinois data centers starting in 2027; CEG anticipates 8.8% earnings growth despite a minor -0.3% revenue dip for the current year. Vistra Corp. (VST), also Zacks Rank #3 (Hold), is set to capitalize on its diversified clean energy portfolio and streamlined regulatory approvals for nuclear projects, projecting substantial 34% revenue growth, though current-year earnings are expected to decline by -15.4%. Mirion Technologies (MIR), rated Zacks Rank #2 (Buy), provides critical radiation detection and safety technology essential for the nuclear lifecycle and is expanding into the small modular reactor (SMR) market, with expected revenue and earnings growth of 5.3% and 14.6%, respectively. BWX Technologies (BWXT), a Zacks Rank #3 (Hold), manufactures nuclear components for government and commercial operations, including SMRs and micro-nuclear reactors for defense, forecasting 12.9% revenue and 6.6% earnings growth. Cameco Corp. (CCJ), a major uranium producer and Zacks Rank #3 (Hold), is poised for exceptional 91.8% earnings growth on a 7.5% revenue increase, driven by heightened global uranium demand. Consensus earnings estimates for these companies have seen upward revisions, reflecting positive market sentiment.

Key Decisions for Investors

• Given the synergistic impact of surging AI-driven energy demand and supportive government policies targeting a fourfold increase in U.S. nuclear capacity by 2050, investors should consider the highlighted nuclear stocks for long-term capital appreciation, treating market pullbacks as potential buying opportunities as suggested by the source material.
• Diversify exposure across the nuclear value chain by evaluating: energy producers like Constellation Energy (CEG) and Vistra (VST) securing large offtake agreements with tech giants; Mirion Technologies (MIR), a Zacks Rank #2 (Buy), for its critical safety systems and SMR growth potential with 14.6% expected earnings growth; BWX Technologies (BWXT) for its role in nuclear component manufacturing and defense applications; and uranium supplier Cameco (CCJ), which projects a significant 91.8% earnings increase.
• While the sector outlook is positive, exercise due diligence by noting the 'Hold' (Zacks Rank #3) ratings for CEG, VST, BWXT, and CCJ, and closely monitor individual company performance regarding project execution (e.g., CEG's plant upgrades and VST's project timelines), earnings delivery against projections (such as VST's current-year -15.4% earnings forecast despite strong revenue growth), and any shifts in the regulatory or policy environment for nuclear energy.