Surging Clean Energy Demand Sparks Renewed Focus on Nuclear Stocks

An updated edition of the May 16, 2025, article.

Nuclear energy is emerging as a crucial solution for meeting the growing global demand for electricity while supporting the transition to cleaner energy sources. Unlike solar and wind, which are dependent on weather conditions, nuclear power offers a steady and reliable supply of clean energy around the clock.

On May 23, 2025, the U.S. President issued four executive orders designed to strengthen the nation's nuclear energy sector. These directives outline initiatives to modernize regulatory frameworks, accelerate the testing and approval of nuclear reactors, utilize nuclear technology for national security purposes, and grow the domestic nuclear industrial base. The goal is to scale up America’s nuclear energy capacity from nearly 100 gigawatts (“GW”) in 2024 to 400 GW by 2050.

With this increasing importance, nuclear energy-related stocks, such as Entergy Corporation ETR, Dominion Energy D and Constellation Energy Corporation CEG, are becoming attractive investment options. Unlike other clean energy sources that struggle with intermittency, nuclear power plants deliver a steady output, operating continuously except during scheduled maintenance periods.

According to the International Energy Agency (IEA), with strong government support and alignment with the Net Zero Emissions by 2050 Scenario, annual investment in nuclear energy is projected to surpass $150 billion by 2030, up from the current $65 billion. Installed nuclear capacity could exceed 1,000 gigawatts by 2050. The IEA also notes that large nuclear reactors will account for most of the production, while small modular reactors (SMRs) are expected to see substantial growth as well.

The demand for clean electricity is rapidly increasing, driven by factors such as industrial expansion, urbanization, rising global temperatures that boost air conditioner use, the development of large artificial intelligence-powered data centers, and the growing adoption of electric vehicles. Compared to other clean energy sources, nuclear power plants require significantly less land to generate the same amount of electricity. While all conventional energy sources produce waste during electricity generation, nuclear energy stands out as the only one that systematically manages and safely stores its waste.

Electricity is produced from nuclear power plants through nuclear fission. Nuclear fuel, primarily uranium, undergoes fission, a process where atoms split, releasing a tremendous amount of heat energy. A continuous supply of uranium is quite essential for the production of electricity from nuclear power plants. Companies like Cameco Corporation CCJ and BHP Group Limited BHP produce large volumes of uranium needed for power plants.

Nuclear Energy stocks have huge potential in the energy space and can offer significant growth opportunities for investors. Our Nuclear Energy Screen makes it easier for investors to locate high-potential stocks at any given time. Apart from the stocks mentioned above, investors can also explore stocks like Duke Energy DUK and NextEra Energy NEE for further growth in the nuclear energy space.

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3 Nuclear Energy Stocks to Watch Now

Entergy Corporation’s nuclear energy portfolio is supporting its long-term growth strategy and transition to cleaner energy. As of 2024, the company’s four major nuclear plants generate nearly 8 GW, accounting for around 27% of its total power capacity. Entergy is actively pursuing license extensions and system upgrades at these facilities, targeting an additional 275 MW through uprates. These enhancements not only increase generation but also highlight Entergy’s ongoing commitment to delivering stable, carbon-free baseload electricity.

Entergy is advancing its exploration of next-generation nuclear technologies to further reduce emissions. The company has secured a permit in Mississippi for a potential new reactor site and is trying to engage with industrial clients and technology firms, particularly those in the AI and data sectors, on potential partnerships for deploying small modular reactors (SMRs). These collaborations are aimed at jointly addressing the financial and regulatory challenges of next-gen nuclear projects.

Entergy’s nuclear expansion is gaining traction amid rising electricity demand from AI-driven industries and large-scale data centers. Tech giants like Meta and Amazon are increasingly turning to nuclear as a reliable, low-emission power source and have entered into long-term energy supply agreements with Entergy. Backed by strong market demand and a forward-looking strategy, Entergy’s nuclear efforts are well-positioned to support both regional energy reliability and the broader push toward U.S. decarbonization targets.

This Zacks Rank #2 (Buy) company intends to invest $37 billion during the 2025-2029 period to fund the company's generation fleet transition and grid modernization, and expand its zero-carbon generation portfolio.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Dominion Energy remains dedicated to delivering reliable, affordable, and increasingly clean electricity to its customers. The company operates four nuclear power stations, which collectively produce nearly 40% of its total energy output. These plants form a key part of Dominion’s generation portfolio, offering a stable, carbon-free source of baseload power that helps maintain grid reliability while reducing emissions.

Beyond maintaining its current nuclear assets, D is also exploring next-generation technologies to support future growth. A major focus is on small modular reactors (SMRs), which provide several benefits over traditional nuclear facilities, including enhanced safety, lower capital costs, and faster deployment. As demand for electricity rises — driven by trends such as electric vehicle adoption and data center expansion — SMRs could offer a scalable, clean energy solution aligned with Dominion's long-term environmental objectives.

Dominion Energy advances toward its 2050 net-zero carbon target, and nuclear power provides a consistent, emission-free foundation that complements the intermittent nature of renewable sources like solar and wind. Through continued investment in both current and future nuclear technologies, the company is positioning itself to lead in the transition to a more sustainable energy future. By modernizing current facilities and this Zacks Rank #3 (Hold) company is investing in innovative technologies, Dominion Energy is working to ensure a resilient and low-carbon energy system for the future.

Constellation Energy is the largest nuclear power plant operator in the United States, accounting for around 10% of the nation’s total clean energy production. With a fleet of more than 20 reactors across the Midwest, Mid-Atlantic, and Northeast, the company plays a critical role in supplying dependable, carbon-free electricity. Its robust nuclear infrastructure allows Constellation Energy to meet rising demand from power-intensive sectors like data centers. As the top operator of merchant nuclear facilities, Constellation Energy benefits from broad geographic coverage and operational scale that few competitors can rival.

Beyond electricity generation, the company has taken proactive measures to ensure long-term nuclear fuel security. It has locked in multiple uranium supply contracts that extend through the 2030s, helping to mitigate risks from global geopolitical uncertainties. Constellation Energy continues to modernize its nuclear plants, improving performance and extending their operational life. With a fleetwide capacity factor exceeding 94% — significantly above industry averages — the company consistently demonstrates high levels of reliability and efficiency.

Constellation Energy is continuously investing to expand its nuclear capacity in response to accelerating demand for clean energy. Currently carrying a Zacks Rank #3, the company is upgrading its existing facilities and evaluating the addition of up to one gigawatt of new carbon-free energy capacity over the next 10 years. It is also actively pursuing next-generation nuclear technologies that could drive even greater efficiency and sustainability in the years to come.

 

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