Nuclear energy stocks surging on AI datacenter power demand recognition; utilities now pricing in long-term PPA contracts.

Nuclear energy stocks sit at the crossroads of energy security, inflation concerns, and the search for reliable long-term power sources. With global growth expectations steady but shaped by geopolitics, energy prices, and mixed inflation signals from the United States, Europe, and Asia, many investors are reassessing their exposure to the broader energy complex. The nuclear sector offers uranium producers, enrichment facilities, and reactor operators that provide steady, low-carbon baseload power.

**NuScale Power**

NuScale Power develops small modular nuclear reactors, with each NuScale Power Module producing up to 77 megawatts of electricity. The company packages this technology with comprehensive licensing, engineering, operations, and maintenance services, enabling utilities and industrial customers to build and operate compact nuclear plants. NuScale also supports customers with fuel management, outage planning, workforce training, and regulatory compliance to advance projects from design through commissioning and long-term operation.

Currently, NuScale generates US$18.7 million in revenue from electric utilities in the United States, reflecting its focus on nuclear power plant design and related support services. The company already holds US Nuclear Regulatory Commission approval for its small modular reactor design, positioning it as an early mover in the sector. Projects like the RoPower plant in Romania and the ENTRA1 Energy partnership with TVA demonstrate global deployment potential for compact reactors serving grids and data centers. However, NuScale remains loss-making with negative return on equity, relies on higher-risk external funding, and faces delays, cost pressures, and the need for binding power purchase agreements before large-scale revenue generation. For investors tolerant of volatility, this combination of regulatory leadership and execution risk presents a compelling research opportunity within nuclear energy.

**Constellation Energy**

Constellation Energy is a major US power producer selling electricity, natural gas, and sustainability solutions across multiple regions. Its diversified fleet—comprising nuclear, wind, solar, gas, and hydro plants—supplies utilities, businesses, and households. The company positions itself as a key partner for data centers, corporates, and municipalities seeking reliable, carbon-free power through long-term contracts.

Constellation Energy's Generation segment generates US$29.9 billion in revenue from output sold across the Midwest, Mid Atlantic, New York, ERCOT, and other power markets. Its 31,676-megawatt fleet is strategically aligned with growing demand for carbon-free power from AI data centers and large corporates. Recent deals with hyperscalers and Walmart, combined with federal production and zero-emission credits, provide contracted revenue, tax support, and earnings growth potential that pure-play utilities typically lack. High leverage, reliance on regulated nuclear assets, and customer concentration among a handful of large buyers introduce regulatory and execution risks that merit careful assessment.

**GE Vernova**

GE Vernova is an energy infrastructure company supplying the hardware and software needed to generate, transmit, store, and manage electricity worldwide. Its offerings span gas and nuclear turbines, wind farms, and grid control systems serving utilities, industrial plants, and data centers requiring highly reliable power. The company operates through three segments: Power, Wind, and Electrification.

GE Vernova generates revenue primarily from its Power segment at US$20.3 billion, followed by Electrification at US$10.8 billion and Wind at US$8.7 billion. The company sits at the convergence of surging AI data center power demand, grid upgrades, and nuclear deployment. It trades at a P/E below the wider Electrical Equipment industry despite strong fundamentals: a 62.2% return on equity and sharply improved margins. The Power and Electrification segments benefit from a large installed turbine base and substantial service backlog supporting recurring revenue. New orders tied to AI infrastructure and projects like Project Kilby and small modular reactor work at Darlington highlight the company's central role in future electricity supply. The weak Wind business, high non-cash earnings, insider selling, and external borrowing dependence present material risks to the durability of cash generation that warrant close examination.