3 Nuclear Stocks Powering the AI Revolution

Globe and Mail

6 hours ago

Key Points
The artificial intelligence (AI) revolution's insatiable energy appetite is forcing tech giants to embrace nuclear power as the only scalable clean energy solution.
Countries are already planning special economic zones with dedicated nuclear reactors for data centers, creating unprecedented uranium demand.
These three companies offer exposure to different parts of the nuclear renaissance.
10 stocks we like better than Oklo ›
The artificial intelligence (AI) boom has a dirty little secret: The technology is an energy hog of epic proportions. Training an advanced frontier large language model can consume as much electricity as 1,000 U.S. homes use in a year, depending on model size and run time. As Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), and Alphabet (NASDAQ: GOOGL) race to build ever-larger AI systems, they're hitting a wall that has nothing to do with computing power -- it's the electrical grid.
The math is brutal. Data centers already consume 2% of global electricity. With AI workloads growing exponentially, that could hit 8% by 2030, according to the International Energy Agency. Wind and solar can't scale fast enough. Natural gas would derail climate commitments. That leaves one option tech companies once shunned: nuclear fission. Until fusion becomes reality -- still decades away despite recent breakthroughs -- splitting atoms is the only proven technology that can deliver massive, reliable, carbon-free baseload power.
The nuclear solution goes beyond retrofitting old plants
According to recent government announcements and feasibility studies, Singapore is planning special economic zones where data centers will be powered by dedicated small modular reactors (SMRs). Poland is exploring similar "nuclear valleys" for AI infrastructure. Even California, which spent decades shuttering nuclear plants, is now extending the life of the Diablo Canyon nuclear power plant to meet surging demand.
This isn't your grandparents' nuclear industry. Next-generation reactors are smaller, safer, and can be deployed faster than traditional plants. More importantly, tech companies are willing to pay premium prices for guaranteed clean power. Amazon recently acquired a 960-megawatt data center campus adjacent to a Pennsylvania nuclear plant through Talen Energy. Microsoft is hiring nuclear engineers and exploring SMR partnerships. The nuclear renaissance is here, and these three energy stocks offer the best ways to profit.
1. The disruptor
Oklo (NYSE: OKLO) is developing fast-spectrum microreactors that aim to redefine how nuclear power is deployed. Founded by MIT-trained nuclear engineers, Oklo's Aurora reactor uses HALEU fuel (high-assay low-enriched uranium) and passive safety systems, meaning it can operate without active cooling or traditional water-based containment. The company went public via a special purpose acquisition company in 2024 and the stock has traded with high volatility, but the underlying technology is attracting serious attention.
Early prototypes envisioned compact systems, but the current Aurora design targets up to 75 megawatts of electric output (MWe). This is enough to power tens of thousands of homes and can run for about 10 years without refueling. While not truly shipping-container-sized, the Aurora still represents a dramatic leap forward in reactor modularity and deployment speed.
What makes Oklo unique is its business model. Rather than selling reactors, the company plans to sell power directly via long-term contracts. Think of it as nuclear-power-as-a-service. Oklo has signed letters of intent covering more than 2,100 megawatts with data center operators and industrial clients.
The company is targeting first deployment by 2027, pending approval from the Nuclear Regulatory Commission (NRC). While regulatory uncertainty remains a key risk, Oklo could bring its first commercial units online just as AI-driven energy demand enters a new phase of exponential growth.
Oklo remains pre-revenue (not yet making sales), highly speculative, and contingent on both regulatory success and long-term fuel availability. But if successful, it could mark one of the most transformative nuclear breakthroughs of the modern era.
2. The supplier
If nuclear power is experiencing a renaissance, you can't overlook Cameco Corporation (NYSE: CCJ), which is responsible for a significant share of global uranium supply through its high-grade Canadian operations and joint ventures.
Since 2020, uranium spot prices have roughly tripled, rising from around $30 per pound to over $80, with a brief spike above $100 in early 2024. Yet even at today's elevated prices, global uranium production still only meets about 80% of reactor demand, according to the World Nuclear Association. The shortfall has been covered by strategic stockpiles, which are now being rapidly depleted. At the same time, more than 60 new nuclear reactors are under construction globally, with dozens more in the pipeline.
Cameco is capitalizing on this tightening market. It recently signed long-term supply contracts with utilities at prices well above the spot market, signaling that institutional buyers are preparing for sustained scarcity. With production costs averaging around $30 per pound, the company enjoys operating margins above 20%, and those margins are likely to expand as higher-priced contracts come online.
What's the bottom line? Cameco offers direct exposure to uranium's structural bull market, backed by premium contracts, low-cost production, and growing geopolitical importance. Still, investors should note that uranium remains a volatile commodity, influenced by regulatory policy, supply chain fragility, and geopolitical events.
3. The big dog
Constellation Energy (NASDAQ: CEG) operates the largest nuclear fleet in the U.S., with 23 reactors generating roughly 10% of the country's carbon-free electricity. Since its 2022 spinoff from Exelon, its share price has increased nearly fivefold as investors increasingly prize dependable, emissions-free baseload power amid AI-driven demand growth.
But the opportunity could be far from tapped. Hyperscalers are actively searching for secure, large-scale clean energy sources to power AI workloads, and Constellation is stepping into that role. The company is currently negotiating co-location and direct power agreements with data center operators, sidestepping the extended permitting and construction timelines of new-generation plants.
With an existing nuclear fleet, robust transmission infrastructure, and regulatory approvals already secured, Constellation can deliver power years faster than greenfield contenders. That ability is priced into the stock: Constellation trades at a forward price-to-earnings ratio of approximately 34, a premium justified by its unique access to clean energy demand and the strategic value it offers.
Constellation is cash-rich, infrastructure-ready, and well-positioned at the nexus of AI's power demands. While the valuation assumes successful deal execution, the company stands out among incumbents as uniquely capable of capitalizing early on the nuclear-based clean-energy transition.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. George Budwell has positions in Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, Constellation Energy, and Microsoft. The Motley Fool recommends Cameco and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.