Rising Clean Energy Demand Fuels Renewed Interest in Nuclear Stocks

An updated edition of the Aug 13, 2025 article.

Nuclear energy is gaining recognition as a vital solution to meet the world’s increasing electricity needs while supporting the transition to cleaner energy sources. Unlike solar and wind, which depend on weather conditions, nuclear power offers a stable and reliable supply of carbon-free energy throughout the year. The restart of a previously shuttered U.S. nuclear plant underscores the technology’s renewed momentum and the rising investor interest in nuclear energy stocks.

The Nuclear industry is benefiting from the new regulatory reforms, ongoing research and development work, leading to the development of microreactors and small modular reactors. The 24x7 immense clean power requirements from the AI-based new data centers and the reshoring of some industries are creating fresh demand. The government is also working to increase the domestic supply of uranium, a fuel essential to power the nuclear plants.

With this increasing importance, nuclear energy-related stocks, such as BWX Technologies (BWXT), Dominion Energy (D) and Duke Energy (DUK), 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.

Demand for clean energy is rising, and as per the International Energy Agency (“IEA”), energy supply from nuclear power is expected to nearly double between 2020 and 2050, helping utilities meet the rising demand for clean energy. The IEA also highlights that while large nuclear reactors will dominate overall power generation, small modular reactors (SMRs) are projected to experience significant expansion.

Compared with other clean energy sources, nuclear power plants use far less land to produce an equivalent amount of clean electricity. Moreover, while all conventional energy sources generate waste, nuclear energy is unique in its systematic and secure management and storage of that waste. Increasing adoption of electric vehicles, rising demand from the power grids and development of large artificial intelligence-powered data centers.

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 large volumes of uranium and can benefit from the surging demand from nuclear power plants.

Nuclear Energy stocks have a 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 The Southern Company (SO) and NextEra Energy (NEE) for further growth in the nuclear energy space.

Ready to uncover more transformative thematic investment ideas? Explore 36 cutting-edge investment themes with Zacks Thematic Investing Screens and discover your next big opportunity.

BWX Technologies, through its operating segment, BWXT Nuclear Operations Group, Inc., delivers a comprehensive range of nuclear components and services, including the production of reactor components for U.S. Navy submarines and aircraft carriers, as well as various nuclear and non-nuclear R&D and component manufacturing. BWXT also plays a key role in advancing the efficiency of nuclear energy as a carbon-free power source for communities.

By acquiring Kinectrics, BWXT can now offer a broad suite of nuclear power plant lifecycle support services, including for CANDU reactors, and lifecycle management services for the global nuclear power industry, transmission and distribution markets and in the production and supply of isotopes for the radiopharmaceutical industry.

This Zacks Rank #2 (Buy) company has been supporting the U.S. Navy’s mission for more than 70 years. Last month, the company secured a 10-year, $1.6 billion contract from the Department of Energy’s National Nuclear Security Administration to support the national security mission of developing a reliable supply of high-purity depleted uranium. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Dominion Energy is committed to providing reliable, affordable and increasingly clean energy. It owns four nuclear power stations, which generate nearly 40% of its total production.

Dominion Energy remains dedicated to operating its current nuclear facilities while actively exploring next-generation nuclear technologies. A key focus area is SMRs, which offer notable benefits over traditional nuclear plants, such as enhanced safety, lower construction costs and faster deployment timelines. These advanced systems could be instrumental in helping Dominion Energy meet its environmental objectives by delivering a reliable and clean power supply to support growing electricity demand from sectors like electric vehicles and data-driven industries.

Nuclear energy remains a cornerstone of Dominion Energy’s strategy to deliver power that is dependable, affordable and environmentally responsible. As the company moves toward its goal of achieving net-zero carbon emissions by 2050, nuclear power provides a steady, carbon-free foundation that complements renewable energy sources such as wind and solar. This Zacks Rank #2 company is investing in innovative technologies and is working to ensure a resilient and low-carbon energy system for the future.

Duke Energy operates 11 nuclear units across six sites in North Carolina and South Carolina, collectively capable of producing nearly 10,700 megawatts (MW) of clean electricity. Nuclear power plays a critical role in Duke Energy’s generation mix, accounting for 27.5% of the company’s total electricity output in 2024. It is also the only clean energy source that provides continuous, around-the-clock availability. Duke Energy is also exploring the idea of using SMR technology to produce electricity.

Duke Energy recently received approval from the U.S. Nuclear Regulatory Commission to operate its 2,500 MW Oconee Nuclear Station for another 20 years. The company has also submitted a license renewal application for the 759 MW Robinson Nuclear Plant and intends to pursue subsequent license renewals for all its reactors to ensure continued long-term operation. Duke Energy is also actively pursuing nuclear energy expansion as part of its long-term clean energy strategy, particularly in the Carolinas.

This Zacks Rank #2 company intends to invest $87 billion during the 2025-2029 period to fund the company's generation fleet transition and grid modernization, and expand its zero-carbon generation portfolio.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research