2 AI Nuclear Energy Stocks to Buy Now Before they Soar like GEV

GE Vernova (GEV) jumped to an all-time high after issuing AI-boosted guidance, doubling its dividend and increasing buybacks, with management saying its electrification backlog will double in three years and the stock has risen roughly 400% since its April 2024 IPO; Zacks frames this as evidence of an AI-driven surge in power demand. The piece cites the broader thesis that generative AI and hyperscaler capex (about $400 billion in 2025 and an estimated $7 trillion of data‑center capex by 2030) will require large-scale grid expansion and nuclear capacity, creating a multi‑year addressable market for power suppliers. It spotlights Constellation Energy (CEG) — whose $27 billion Calpine acquisition cleared DOJ approval Dec. 5, has recently raised dividends and is modeled to grow adjusted EPS ~8% in 2025 and ~22% in 2026 — and NextEra Energy (NEE) — targeting 15–30 GW of data‑center supply by 2035 with projected revenue growth of ~13–14% and EPS growth of ~7–8% — as other best‑in‑class AI‑energy investment candidates.

Analysis

GE Vernova (GEV) jumped to an all‑time high after an investor update that included AI‑boosted guidance, a doubled dividend and expanded buybacks; the spinoff has rallied roughly 400% since its April 2024 IPO and management says its electrification backlog will double over the next three years, supporting the recent breakout from a trading range that began in August. The market reaction reflects high confidence in power suppliers as beneficiaries of AI-driven load growth and corporate buybacks/dividend actions that reframe capital return policies.

The article frames the secular demand case with specific capex figures: hyperscalers plan roughly $400 billion of capex in 2025 (a >300% increase vs. 2018) and an estimated $7 trillion of data‑center infrastructure capex through 2030, while generative AI workloads can consume an order of magnitude more electricity than typical web activity; the U.S. government’s push to expand nuclear capacity and tax credits is cited as a policy enabler.

Individual names present distinct risk/reward vectors: Constellation Energy (CEG) cleared DOJ approval for its $27 billion Calpine deal on Dec. 5, has raised dividends (25% in 2024, 10% in 2025) and forecasts adjusted EPS growth of ~8% in 2025 and ~22% in 2026; NextEra (NEE) targets 15–30 GW for data centers by 2035, projects ~13–14% revenue growth and ~7–8% EPS growth with a 2.8% yield and currently trades about 15% below recent highs. Execution on large M&A, timeline risk for AI capex, and policy dependence remain key risks to monitor.

Key Decisions for Investors

• Consider adding GEV to long‑term exposure to AI‑driven power demand given the doubled dividend, buybacks and management’s backlog outlook, but size positions conservatively because the stock is trading at record levels after a ~400% post‑IPO run
• Favor CEG as a core pick ahead of Calpine integration and attractive near‑term EPS growth (≈8% in 2025, ≈22% in 2026), while monitoring SMR execution, integration risk and realization of Nuclear Production Tax Credit benefits
• Accumulate or add to NEE on weakness given its 15–30 GW data‑center pipeline, double‑digit revenue guidance and 2.8% yield, but watch interest‑rate moves and the timelines for project execution that will determine utility returns
• Watch hyperscaler capex announcements, DOE/nuclear policy moves and large contract wins as primary catalysts and use staggered entries or modest hedges to manage the risk that demand, policy or execution timelines slip