Rising Demand for Clean Power Drives Interest in Nuclear Energy Stocks

An updated edition of the March 26, 2025, article.

Nuclear energy is becoming a vital solution for meeting the world's increasing electricity needs and supporting the ongoing shift to cleaner power sources. Unlike solar and wind, which rely on weather conditions, nuclear power plants provide a constant and reliable supply of clean energy, operating 24/7.

With this increasing importance, nuclear energy-related stocks, such as Duke Energy Corporation DUK, Dominion Energy D and Constellation Energy Corporation CEG, are becoming attractive investment options. Unlike other clean energy sources that struggle with intermittency, nuclear power plants deliver a steady output, operating continuously except during scheduled maintenance periods.

According to the International Energy Agency (IEA), with strong government support and alignment with the Net Zero Emissions by 2050 Scenario, annual investment in nuclear energy is projected to surpass $150 billion by 2030, up from the current $65 billion. Installed nuclear capacity could exceed 1,000 gigawatts by 2050. The IEA also notes that large nuclear reactors will account for most of the production, while small modular reactors (SMRs) are expected to see substantial growth as well.

The demand for clean electricity is rapidly increasing, driven by factors such as industrial expansion, urbanization, rising global temperatures that boost air conditioner use, the development of large artificial intelligence-powered data centers, and the growing adoption of electric vehicles. Compared to other clean energy sources, nuclear power plants require significantly less land to generate the same amount of electricity. While all conventional energy sources produce waste during electricity generation, nuclear energy stands out as the only one that systematically manages and safely stores its waste.

Electricity is produced from nuclear power plants through nuclear fission. Nuclear fuel, primarily uranium, undergoes fission, a process where atoms split, releasing a tremendous amount of heat energy. A continuous supply of uranium is quite essential for the production of electricity from nuclear power plants. Companies like Uranium Energy UEC and BHP Group Limited BHP produce large volumes of uranium needed for power plants.

Nuclear Energy stocks have 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 NextEra Energy NEE and Entergy Corporation ETR for further growth in the nuclear energy space.

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3 Nuclear Energy Stocks to Watch Now

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.

The company plans to expand its nuclear capacity by nearly 250 MW by 2031. In 2025, Duke Energy secured agreements to monetize more than $500 million in nuclear production tax credits, further enhancing its financial strength.

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.

This Zacks Rank #3 (Hold) company intends to invest $83 billion during the 2025-2029 period to fund the company's generation fleet transition and grid modernization, and expand its zero-carbon generation portfolio.

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

Dominion Energy is not only committed to operating its existing nuclear facilities but is also actively evaluating the potential of next-generation nuclear technologies. One area of particular interest is SMRs, which offer several advantages over conventional nuclear plants, including improved safety features, reduced construction costs, and shorter development timelines. These advanced systems could play a crucial role in helping Dominion Energy achieve its environmental goals by providing a stable and clean energy source amid rising electricity demand, driven by the growth of electric vehicles and data-intensive industries.

Nuclear energy continues to be a critical pillar of Dominion Energy’s broader strategy to provide power that is reliable, cost-effective, and environmentally sustainable. As the company progresses toward its ambition of achieving net-zero carbon emissions by 2050, nuclear power serves as a consistent, carbon-free solution that supports the integration of renewable sources like wind and solar. By modernizing current facilities and this Zacks Rank #3 company is investing in innovative technologies, Dominion Energy is working to ensure a resilient and low-carbon energy system for the future.

Constellation Energy is the largest nuclear power plant operator in the United States, accounting for around 10% of the nation’s total clean energy production. With a fleet of more than 20 reactors across the Midwest, Mid-Atlantic, and Northeast, the company plays a critical role in supplying dependable, carbon-free electricity. Its robust nuclear infrastructure allows Constellation Energy to meet rising demand from power-intensive sectors like data centers. As the top operator of merchant nuclear facilities, Constellation Energy benefits from broad geographic coverage and operational scale that few competitors can rival.

Beyond electricity generation, the company has taken proactive measures to ensure long-term nuclear fuel security. It has locked in multiple uranium supply contracts that extend through the 2030s, helping to mitigate risks from global geopolitical uncertainties. Constellation Energy continues to modernize its nuclear plants, improving performance and extending their operational life. With a fleetwide capacity factor exceeding 94% — significantly above industry averages — the company consistently demonstrates high levels of reliability and efficiency.

Constellation Energy is continuously investing to expand its nuclear capacity in response to accelerating demand for clean energy. Currently carrying a Zacks Rank #3, the company is upgrading its existing facilities and evaluating the addition of up to one gigawatt of new carbon-free energy capacity over the next 10 years. It is also actively pursuing next-generation nuclear technologies that could drive even greater efficiency and sustainability in the years to come.

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