2 Cheap Nuclear Energy Stocks to Buy Now to Ride AI-Boosted Growth

Driven by the energy demands of AI and a desire to reduce reliance on fossil fuels, both the U.S. government and Big Tech are increasing their investments in nuclear energy, aiming to triple capacity by 2050. Companies like Meta, Microsoft, and Amazon are entering nuclear energy deals, projecting a combined $325 billion in AI capital expenditures in 2025, contributing to an expected $2.5 trillion global investment in clean energy technologies. Mirion Technologies (MIR), specializing in radiation safety, and Rolls-Royce (RYCEY), leveraging nuclear propulsion expertise for small modular reactors, are highlighted as stocks poised to benefit from this expansion, with RYCEY reporting a 55% operating profit increase and reinstating shareholder dividends.

Analysis

The U.S. government and major technology firms are significantly increasing their commitment to nuclear energy, driven by the escalating power demands of artificial intelligence and a strategic shift away from fossil fuels. Governmental initiatives aim to triple U.S. nuclear capacity by 2050, further supported by a late May executive order designed to accelerate nuclear power expansion. Concurrently, tech giants like Meta, Microsoft, and Amazon are pursuing nuclear energy deals, with projected combined AI capital expenditures reaching $325 billion in 2025, contributing to an anticipated $2.5 trillion global investment in clean energy technologies that year. Meta's recent 20-year nuclear power agreement with Constellation Energy underscores this trend. Mirion Technologies (MIR), specializing in radiation safety critical for nuclear operations and next-generation reactors, derives approximately 40% of its 2024 revenue from nuclear power and has seen its stock surge 95% in the past year, hitting new all-time highs. Mirion projects over 5% sales growth in 2025 to $906.5 million and a 15% increase in adjusted EPS to $0.47. Rolls-Royce (RYCEY) is also capitalizing on this trend, leveraging its nuclear propulsion expertise to develop small modular reactors (SMRs). Under new leadership since January 2023, Rolls-Royce reported a 55% increase in operating profit on 16% higher sales in its 2024 results, reinstated dividends, announced a £1 billion share buyback, and is progressing ahead of its goal to quadruple profits by 2028. RYCEY's stock has risen over 900% in the past three years and is projected for 31% adjusted earnings growth in FY25, though it currently trades 45% below its all-time highs.

Key Decisions for Investors

• Investors should consider allocating to the nuclear energy sector, given strong secular tailwinds from AI-driven energy demand and governmental decarbonization efforts.
• Mirion Technologies (MIR) offers direct exposure to critical nuclear safety and operational technologies; its strong financial outlook and market position are compelling, though its recent stock appreciation to all-time highs warrants careful consideration of entry points.
• Rolls-Royce (RYCEY) presents a turnaround and growth opportunity with its SMR development and robust financial recovery, including dividend reinstatement and buybacks; however, investors should be mindful of potential short-term stock consolidation after its significant rally and monitor its progress towards long-term strategic goals.
• Monitor ongoing policy developments and the pace of AI infrastructure build-out, as these are key catalysts for sustained growth in the nuclear energy value chain.