Nuclear Energy Stocks Rise on Surging Demand for Reliable Clean Power

The outlook for the nuclear industry is also improving, supported by license extensions for existing reactors, advances in small modular reactor (“SMR”) technology, approvals for new facilities, and plans to restart previously retired nuclear plants in the United States. Growing investment from major technology companies in SMR development further reflects rising confidence in nuclear energy’s long-term role and growth prospects.

The U.S. Department of Energy has awarded over $94 million in cost-shared funding to eight companies to accelerate the deployment of advanced Generation III+ SMRs. The funding will help overcome key barriers in licensing, supply chains and site readiness while strengthening the domestic nuclear ecosystem. The initiative is intended to support new SMR projects in the 2030s and aligns with the administration's strategy to expand nuclear energy, enhance U.S. energy security and reinforce the nation's energy leadership.

The United States is pursuing an ambitious expansion of its nuclear power capacity, aiming to increase generation from roughly 100 gigawatts (“GW”) in 2024 to nearly 400 GW by 2050. Nuclear energy currently accounts for about 20% of the nation's electricity generation, and ongoing license renewals by the U.S. Nuclear Regulatory Commission are extending the operational lives of existing reactors, reinforcing the country's supply of reliable, carbon-free electricity.

The industry is further supported by favorable government policies, continued advancements in SMR technology and initiatives to strengthen the domestic nuclear fuel supply chain. Meanwhile, surging electricity demand driven by AI-powered data centers, manufacturing reshoring and the growing adoption of electric vehicles is accelerating the need for dependable, round-the-clock clean energy, positioning nuclear power providers for long-term growth.

With this increasing importance, nuclear energy-related stocks, such as Ameren Corporation AEE, Energy Fuels UUUU and Vistra Corp. VST, are becoming attractive investment options. Unlike other clean energy sources affected by intermittency, nuclear power plants provide a consistent and stable energy output, operating around the clock except during planned maintenance intervals.

Nuclear power offers a significant advantage over other clean energy sources by generating large amounts of electricity with a much smaller land footprint. Although all traditional energy sources produce waste, the nuclear industry benefits from stringent regulations and well-established systems for the safe handling, storage and management of nuclear waste. Additionally, rising electricity demand, driven by the growing adoption of electric vehicles, increasing grid requirements, and the rapid expansion of artificial intelligence-powered data centers, is reinforcing the critical role of nuclear energy in providing reliable, large-scale power generation.

As the production of clean energy is expected to rise from nuclear plants, a continuous supply of high-quality uranium is essential to keep the nuclear units running. Companies like Uranium Energy UEC and BHP Group Limited BHP produce uranium and can benefit from the surging demand from nuclear power plants.

Nuclear Energy stocks have huge potential 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.

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Ameren Corporation's expanding focus on nuclear energy enhances its long-term investment appeal by strengthening generation reliability and supporting its clean-energy transition. The company plans to extend the operating license of its existing nuclear facility beyond 2044, ensuring a dependable source of carbon-free baseload power while improving fuel diversity and meeting rising electricity demand.

In addition, Ameren's preferred resource plan calls for nearly 1,500 MW of new nuclear capacity by 2040. This investment is expected to complement its renewable energy portfolio with reliable, around-the-clock generation, supporting grid stability, regulated rate-base growth and long-term earnings. As power demand accelerates due to data centers, manufacturing expansion and electrification, Ameren's nuclear strategy positions it for sustainable long-term growth.

Furthermore, this Zacks Rank #2 (Buy) stock plans to invest nearly $31.8 billion between 2026 and 2030 to modernize and strengthen its utility infrastructure, supporting long-term operational and financial growth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Energy Fuels offers compelling upside as one of the best-positioned U.S. beneficiaries of the nuclear energy and critical minerals boom. Its White Mesa Mill provides a major competitive advantage as the country’s only operating conventional uranium mill and only commercial facility capable of producing separated rare earth elements. Strong execution, including expected first-half 2026 uranium production of roughly 1.6 million pounds, highlights the company’s ability to scale rapidly into a tightening uranium market.

With a deep pipeline of restart-ready and development-stage assets, Energy Fuels has substantial production growth potential as uranium prices and nuclear demand rise. Increasing electricity consumption, data-center growth, decarbonization and energy-security priorities should support a sustained nuclear expansion, positioning UUUU for stronger volumes, improved margins and long-term value creation. Its rare earth exposure adds another powerful growth driver, making the stock a differentiated and increasingly attractive play on U.S. strategic resource independence.

This Zacks Rank #2 stock has six long-term contracts with U.S. nuclear utilities covering deliveries from 2026 to 2032. Amid surging uranium demand from the utilities, Energy Fuels expects to reduce uranium production costs throughout 2026, which can further boost its topline.

Vistra Corp. offers a strong long-term investment case, supported by its diversified generation portfolio and expanding leadership in nuclear energy. Long-term power purchase agreements (“PPAs”) remain a key component of Vistra’s strategy to expand the contracted share of earnings while retaining exposure to upside in merchant markets. Management reaffirmed that recently executed nuclear PPAs, including the Meta agreements covering its PJM nuclear facilities and the Amazon Web Services agreement at Comanche Peak, are expected to increase contracted and retail-linked revenues as they take effect, with a portion of the Meta-related contribution beginning in 2027.

Demand for clean energy is rising in Vistra’s service territories. The company’s six nuclear reactors have received a license extension, ensuring continued reliable generation of emission-free electricity in key markets. These six nuclear reactors have the capacity to generate more than 6,500 MW of emission-free energy, enough to power about 3.25 million homes.

This Zacks Rank #3 (Hold) stock has a comprehensive hedging program, which lessens the impact of short-term price fluctuations.

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