5 Nuclear Energy Stocks in Focus Amid AI-Powered Data Center Growth

Industry Overview - The AI-powered data center industry is experiencing significant growth, leading to increased demand for nuclear energy as a power source [1][4] - Major tech companies like Microsoft, Alphabet Inc., Meta Platforms Inc., and Amazon.com are collaborating with nuclear energy producers to meet the high electricity needs of data centers [2] Nuclear Energy Stocks - Five nuclear energy stocks with favorable Zacks Rank are highlighted: Constellation Energy Corp. (CEG), BWX Technologies Inc. (BWXT), Dominion Energy Inc. (D), American Electric Power Co. Inc. (AEP), and NextEra Energy Inc. (NEE) [3] Constellation Energy Corp. (CEG) - CEG is focusing on clean energy, particularly nuclear, with a strategic capital expenditure of $5.1 billion through 2025 to acquire nuclear fuel and increase inventory [8] - The company aims to eliminate 100% of greenhouse gas emissions and has a nuclear fleet capacity factor of 94.6% in 2024, showing strong production [9] - CEG has entered a 20-year agreement with Microsoft to revive the Three Mile Island nuclear plant, with a $1.6 billion investment to provide carbon-free electricity [11] - Expected revenue and earnings growth rates for CEG are -9.7% and 8.3%, respectively, for the current year [12] BWX Technologies Inc. (BWXT) - BWXT manufactures nuclear components and has a Zacks Rank of 2, with expected revenue and earnings growth rates of 11.6% and 5.1%, respectively, for the current year [13][14] - The company has secured partnerships with the U.S. Department of Defense and commercial nuclear energy companies to develop advanced nuclear technologies [14] PG&E Corp. (PCG) - PG&E is involved in the sale and delivery of electricity and natural gas in California, generating power from various sources including nuclear [15][16] - The expected revenue and earnings growth rates for PCG are 7.3% and 10.3%, respectively, for the current year [17] American Electric Power Co. Inc. (AEP) - AEP owns the largest electricity transmission system in the U.S. and plans to invest $54 billion from 2025 to 2029 to strengthen its grid [18] - Approximately 22% of AEP's power is generated from nuclear energy, with expected revenue and earnings growth rates of 6.9% and 4.5%, respectively, for the current year [19] NextEra Energy Inc. (NEE) - NEE is expanding its operations through organic projects and acquisitions, with a net generation and storage capacity of approximately 72 gigawatts as of December 31, 2024 [20] - The company expects to add 36.5-46.5 GW of new renewables from 2024 to 2027, with an expected revenue growth rate of 20.2% for the current year [21]