As the growth of artificial intelligence (AI) continues unabated, the demand for nuclear energy is also set to rise. This is because the power demand from data centers is projected to surge by over 160% by 2030 compared to 2023 levels, reflecting the escalating energy requirements of the digital economy. To meet this substantial growth, an estimated 85-90 gigawatts (GW) of additional nuclear capacity will be needed, underscoring the crucial role of reliable and sustainable energy sources in supporting the data-driven infrastructure of the future.
A recent report by the International Energy Agency (IEA) suggests that global electricity generation from nuclear power is set to reach a high this year of 70 gigawatts (GW) of nuclear capacity under construction worldwide. The IEA highlighted that this renewed focus on nuclear energy could herald a “new era for the secure and clean power source,” reflecting its growing role in meeting the dual challenges of energy security and decarbonization.
With these bullish undertones, two stocks from the sector have witnessed noteworthy movements in recent times. Further, analysts are predicting that there is more upside left. Let’s have a closer look at them.
Nuclear Energy Stock #1: NuScale Power
Founded in 2007, NuScale Power (SMR) is an energy company specializing in the development of small modular nuclear reactors (SMRs). The company was established to develop innovative nuclear technology to provide safe, reliable, and cost-effective energy solutions for a sustainable future.
Valued at a market capitalization of $7.1 billion, SMR stock has rallied by 12% in 2025.
Yet to be consistently profitable, the company reported a narrowing of losses in the most recent quarter. The loss per share came in at $0.18 compared to $0.26 in the previous year. Revenues slipped drastically to $475,00 from about $7 million in the year-ago as the cancellation of the Carbon Free Power Project in Idaho continued to hurt its top line. However, the company plans to receive additional revenue from Fluor (FLR) related to the Doicesti project in Romania.
Net cash used in operating activities for the first nine months of 2024 came in at $82.2 million, lower than the previous year’s figure of $110 million. Overall, the company closed the quarter with a healthy cash position of $111.6 million which was much higher than its short-term debt levels of about $18 million.
A pertinent point of interest for the company in the recent nuclear energy report by IEA was the agency’s bullish assertions about SMRs stating they “particular[ly] offer exciting growth potential.” This bodes well for NuScale in the long term.
Further, NuScale Power’s SMRs present a scalable, low-footprint nuclear energy solution, aligning with the surging power demands of AI-driven data centers and the broader climate goals of major tech companies. Players like Google (GOOG), Amazon (AMZN), and Microsoft (MSFT) are increasingly exploring nuclear options, finding SMRs particularly appealing for their easier deployment and maintenance.
This rising demand places NuScale in a strong position, as it currently holds a significant competitive advantage. NuScale remains the only company with regulatory approval from the United States Nuclear Regulatory Commission to build SMRs. This exclusivity effectively grants the company a monopoly on approved SMR projects, highlighting its leadership in the field. The company’s proactive approach to regulatory compliance not only underscores its innovative edge, but also positions it to maintain a first-mover advantage as demand accelerates.
Additionally, the upcoming Standard Power project, scheduled to launch in 2029, is poised to be a transformative milestone. With a projected capacity of 2 GW, this initiative is expected to become a significant value driver for NuScale, further solidifying its position as a leader in next-generation nuclear energy solutions.
Lastly, the Standard Power project, set to go live in 2029, is expected to be a massive value driver for the company with forecasts of producing 2 GW of power.
Thus, analysts remain cautiously optimistic about the stock, attributing to it a rating of “Moderate Buy” with a target price that has already been surpassed.
Nuclear Energy Stock #2: Cameco
Founded in 1988 by the merger between Crown Corporation Saskatchewan Mining and Development Corporation and Canadian Uranium Resources, Cameco Corp (CCJ) is the world’s largest publicly traded uranium company. Its primary focus is on exploration, mining, milling, and conversion of uranium into fuel for nuclear power plants, with additional focus on refining, fuel manufacturing, and investments across the nuclear fuel cycle.
Currently commanding a market cap of $24.38 billion, Cameco stock is up 2.75% over the past year. The stock also offers a modest dividend yield of 0.2%.
Cameco’s results for the most recent quarter were a mixed bag with revenues rising but the company reporting an adjusted loss per share. Revenue increased by 25% on a year-over-year basis to $721 million as a rise in uranium production in the key McArthur River/Key Lake and Cigar Lake regions aided the growth in overall revenue.
Net cash from operating activities for the first nine months of 2024 witnessed a yearly fall of 22.9% to come in at $376 million as the company closed the quarter with a cash balance of $197.1 million. Although, the cash balance was a decline from the beginning of the year, it was above the company's short-term debt levels of $63.1 million.
Cameco’s strategic investments and robust asset base underscore its position as a pivotal player in the nuclear energy market. Among its most notable moves is the acquisition of a 49% stake in Westinghouse, one of the world’s largest nuclear power plant manufacturers. This investment not only deepens Cameco’s presence across the nuclear energy supply chain, but also aligns seamlessly with its uranium production capabilities, creating a vertically integrated advantage.
Cameco currently generates roughly 32 million pounds of tier-one uranium annually, supported by reserves totaling more than 1 billion pounds, which ensures a secure production base for the next two decades. These reserves, valued at tens of billions of dollars, highlight the company’s ability to reliably sustain operations and cash flow without requiring significant investments in exploration. This operational efficiency positions Cameco favorably in a market that is increasingly grappling with uranium supply shortages. These shortages are expected to drive sustained price increases, which Cameco is well-equipped to benefit from, given its strong asset base and market-leading position.
Furthermore, the company’s ability to secure highly favorable long-term contracts adds another layer of resilience to its business model. Between September and November, contracted volumes increased from just over 50 million pounds to approximately 90 million pounds. These contracts, structured to align with production capabilities, ensure Cameco capitalizes on rising uranium prices while providing stability to its revenue streams.
Analysts have deemed CCJ stock a “Strong Buy,” with a mean target price of $62.20, indicating upside potential of about 11.1% from current levels.
