Artificial intelligence (AI)-powered data centers are a booming industry now. The energy-hungry AI space has made nuclear energy one of the hottest industries on Wall Street over the past year. At this stage, investors should focus on nuclear energy producers or equipment manufacturers or input suppliers. 

In December 2024, the US Department of Energy reported that data center energy usage will “double or triple by 2028,” after doubling over the past decade. On May 23, President Donald Trump signed four executive orders to deploy new nuclear reactors and strengthen the supply chain.

These orders aim to increase the U.S. nuclear energy capacity from 100 gigawatt (GW) to 400 GW by 2050. In addition to encouraging the construction of reactors close to military installations and AI-based data center hubs, which need enormous amounts of power to run, the executive orders give priority to domestic uranium supply.

At this stage, we recommend closely watching five nuclear power-centric stocks that have surged in the past month and are expected to provide solid returns in the long term. Every dip in these stocks should be a good buying opportunity from a long-term perspective. 

These stocks are: Constellation Energy Corp. (CEG Quick QuoteCEG - Free Report) , Vistra Corp. (VST Quick QuoteVST - Free Report) , Mirion Technologies Inc. (MIR Quick QuoteMIR - Free Report) , BWX Technologies Inc. (BWXT Quick QuoteBWXT - Free Report) and Cameco Corp. (CCJ Quick QuoteCCJ - Free Report) . 

The chart below shows the price performance of the five above-mentioned stocks in the past month.

Image Source: Zacks Investment Research

Constellation Energy Corp.

Constellation Energy is a leading energy company in the United States with a significant thrust on clean energy, especially nuclear energy. CEG’s strategic $5.1 billion capital expenditure through 2025 should help acquire nuclear fuel and increase inventory levels. CEG aims to eliminate 100% of greenhouse gas emissions by leveraging innovative technology. 

Constellation Energy is an industry leader in operating nuclear plants safely, efficiently and reliably. Its acquisition of NRG Energy’s 44% ownership stake in the South Texas Project Electric Generating Station has added a 2,645 MW, dual-unit nuclear plant to its portfolio. This plant is located about 90 miles southwest of Houston and should further help CEG to expand operations in Texas.

In late 2024, Microsoft entered into a 20-year agreement with CEG to revive the Three Mile Island nuclear plant in Pennsylvania. The $1.6 billion investment aims to restart the reactor, which has been dormant since 2019, to provide carbon-free electricity for Microsoft’s expanding data centers. CEG expects to increase nuclear output by 160 MW at Byron and Braidwood, with investments of $800 million through 2029 for required low-pressure turbine replacements.

Recently, Meta Platforms signed a 20-year energy deal with CEG to supply nuclear power to its growing AI data centers in Illinois. Beginning in 2027, this agreement will ensure a steady supply of clean energy. This will help Meta grow its AI operations and cut carbon emissions. CEG currently carries a Zacks Rank #3 (Hold). 

Constellation Energy has an expected revenue and earnings growth rate of -0.3% and 8.8%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.4% in the last 60 days.

Vistra Corp. 

Vistra operates as an integrated retail electricity and power generation company. VST has a diversified clean energy generation portfolio that includes nuclear assets. VST is well-equipped to expand or modernize its nuclear operations more efficiently and cost-effectively. 

The Nuclear Regulatory Commission’s shortened approval timelines could fast-track projects that once faced years of delays, providing Vistra with a strategic advantage in delivering reliable, clean power from its nuclear power station to customers.

Vistra could benefit from government contracts or public-private partnerships tied to these initiatives, especially as AI infrastructure and grid reliability become national priorities. VST’s plan to invest in its nuclear fleet and the new executive power is in sync with its long-term objectives.

VST, with its existing nuclear assets and strong presence in high-growth electricity markets, is well-positioned to capture long-term upside from this aggressive nuclear push, both in terms of earnings growth and strategic relevance in the clean energy transition. VST currently carries a Zacks Rank #3. 

Vistra has an expected revenue and earnings growth rate of 34% and -15.4%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.2% in the last seven days.

Mirion Technologies Inc.

Mirion Technologies provides radiation detection, measurement, analysis, and monitoring products and services in North America, Europe, and the Asia Pacific. It operates in two segments, Medical, and Nuclear & Safety.

MIR’s Nuclear & Safety group provides radiation safety technologies that are critical for operational nuclear facilities, R&D, next-gen nuclear reactors, and beyond. MIR’s nuclear-focused technologies are essential throughout the entire nuclear energy lifecycle. Many of MIR’s solutions are also mandatory for customers in highly regulated industries such as nuclear energy.

Mirion is committed to expanding its reach in the next generation of nuclear energy by working with small modular reactor (SMR) developers to “solve essential nuclear measurement, safety and security challenges.” MIR currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Mirion Technologies has an expected revenue and earnings growth rate of 5.3% and 14.6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2.2% in the last 60 days.

BWX Technologies Inc.

Zacks Rank #3 BWX Technologies manufactures and sells nuclear components in the United States, Canada, and internationally. BWXT operates through two segments, Government Operations and Commercial Operations.

BWXT supplies precision-manufactured components and services to the commercial nuclear power industry. BWXT offers technical, management and site services to governments in complex facilities and environmental remediation activities.

BWXT is expanding its commercial power segment and gaining ground at the cutting edge of small modular and micro nuclear reactors. BWXT is working alongside the U.S. government and other cutting-edge nuclear energy companies.

BWXT has landed deals and partnerships with the U.S. Department of Defense to help build a cutting-edge micro-nuclear reactor. It is also working alongside key commercial nuclear energy companies such as GE Vernova and SMR standout TerraPower.

Higher manufacturing volume of nuclear components for U.S. Government programs, along with growth in design and engineering work executed by the company’s advanced technologies business, particularly in the defense market, is likely to bolster BWXT’s top line in the future.  

BWX Technologies has an expected revenue and earnings growth rate of 12.9% and 6.6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.1% in the last 30 days.

Cameco Corp.

Cameco is one of the world's largest uranium producers, a significant supplier of conversion services and one of two CANDU fuel manufacturers in Canada. CCJ’s uranium products are used to generate clean electricity in nuclear power plants around the world. CCJ also explores for uranium in the Americas, Australia and Asia.

CCJ operates through three segments: Uranium, Fuel Services, and Westinghouse. The Uranium segment engages in the exploration for, mining, milling, purchase, and sale of uranium concentrate.

CCJ also provides outage and maintenance, engineering support, instrumentation and control equipment, and plant modification services, as well as components and parts to nuclear reactors. CCJ currently carries a Zacks Rank #3. 

Cameco has an expected revenue and earnings growth rate of 7.5% and 91.8%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.1% in the last 30 days.