Nuclear stocks erupted higher last Friday after President Donald Trump signed new executive orders aimed at hastening the development of nuclear energy sites. The orders contain decrees to reduce the licensing approval process to 18 months and allow new construction on federal land. Is this a sell-the-news moment, or does the nuclear rally have legs? Read on to learn why investors should remain bullish on nuclear stocks in 2025.
Don’t Call It a Comeback: Nuclear Revival Being Shaped by Key Tailwinds
Long considered non-viable after several high-profile disasters, nuclear energy is receiving renewed focus thanks to rapidly increasing demand, government emphasis on clean energy, and underlying tech improvements. Nuclear energy offers incentives for both businesses and regulators as a stabilizing source for power grids that is also clean and efficient.
High Demand From Tech Companies
AI data centers require tremendous electricity, creating strain on traditional power sources. Nuclear power can lessen AI's burden on the power grid, and big tech firms are already making deals to add atomic sources. Google’s agreement with Elementl Power would open up three new nuclear sites by 2035, and Microsoft announced a 20-year partnership with Constellation Energy that includes plans to reopen Three Mile Island. The International Energy Agency projects record nuclear output in 2025, and with megacap tech firms standing to add 30 gigawatts of nuclear power to the grid in the coming decade, plenty of opportunities abound for energy investors.
Friendly Regulatory and Policy Landscape
The United States isn’t the only nation spurring nuclear development. The atomic initiative has a global reach as dozens of countries seek new clean, sustainable energy sources. In 2023, the United Nations held its Climate Change Conference (COP28) and announced its goal to eliminate fossil fuels by 2050. Part of this plan includes tripling nuclear energy output, and countries like South Korea, China, and the U.K. also have individual policies on tap to increase production.
Improved Nuclear Technology
President Trump mentioned tech improvements in Friday’s executive orders, including the advancement of small modular reactors (SMRs). Traditional nuclear power plants are massive facilities, but SMRs represent a safe, reliable, and (most importantly) scalable alternative. SMRs can be used in remote locations or as complements to intermittent energy sources like solar or wind. SMRs also require less capital expenditure, making them attractive to companies that otherwise couldn’t afford a nuclear transition.
3 Nuclear Stocks Primed for Ignition
Nuclear energy stocks are starting to look enticing thanks to ever-expanding power demand and growing regulatory support across continents. While many of these projects are still a decade away from completion, the process of finding the winners starts now. Here are three stocks that could benefit most from a nuclear energy transition.
NuScale Power: The Pioneer of SMR Technology
[content-module:CompanyOverview|NYSE: SMR]One of the biggest beneficiaries of Trump’s announcement on Friday was NuScale Power Corp. (NYSE: SMR), which shot up more than 19% by the close of trading. Part of the reason was Trump mentioning SMRs by name, as NuScale’s VOYGR power module is still the only one approved by the Nuclear Regulatory Commission in the US.
SMRs remove the biggest hurdle in nuclear development by significantly reducing the upfront cost (in both capital and time) required to open a new facility.
NuScale has an agreement with Standard Power to provide two gigawatts of energy to data centers across Pennsylvania and Ohio, and the stock is already up more than 60% year-to-date (YTD). But there’s more room to rally as the company posted an impressive top and bottom-line earnings beat on May 12, and the stock is closing in on the all-time high set last November.
Cameco Corp: Skip Right to the Source
[content-module:CompanyOverview|NYSE: CCJ]Nuclear power requires enriched uranium to activate, and Canada’s Cameco Corp. (NYSE: CCJ) is the largest uranium miner and refiner in the world with over $3 billion in annual sales.
CCJ shares reacted positively to Trump’s announcement, jumping more than 10% on Friday following the executive order release. Like NuScale, the stock has bullish technicals, breaking above the 50-day and 200-day moving averages as it approaches the all-time high set back in December.
Analysts shrugged off Cameco’s May 1 earnings miss, likely anticipating increasing nuclear demand. Goldman Sachs initiated coverage on the stock on May 20 with a Buy rating, and the average price target on CCJ shares is $70.53, representing upside of more than 20%.
BWX Technologies: A Picks and Shovels Nuclear Power Play
[content-module:CompanyOverview|NYSE: BWXT]Nuclear facilities require unique materials and components for construction, and BWX Technologies Inc. (NYSE: BWXT) is one of the primary providers of these parts for both commercial and government operations.
BWX reported $2.78 billion in annual sales last year, and the stock’s recent rally has been driven by a strong start to earnings in 2025. The Q1 report featured a top and bottom-line beat, including double-digit year-over-year revenue growth and a 14% increase in government operation revenue.
On the technical side, BWXT shares recently crossed the 200-day moving average for the first time since January. Based on 10 analyst reports, the stock has a consensus Buy rating. Maxim Group's most recent price target of $136 came from May 8.
Where Should You Invest $1,000 Right Now?
Before you make your next trade, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.
Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.
They believe these five stocks are the five best companies for investors to buy now...
