Nuclear Power Is Back! 3 Simple Ways to Invest in the Nuclear Renaissance.

Industry Overview - Nuclear energy is experiencing a resurgence due to increasing power demand driven by factors such as artificial intelligence data centers and a shift towards cleaner energy sources. Countries are planning to triple their nuclear power capacity by 2050 according to Goldman Sachs [1][2]. Company Analysis: NuScale Energy - NuScale Power is innovating with small modular nuclear reactors (SMRs), which are factory-built, potentially making them easier, cheaper, and safer to construct compared to traditional nuclear plants. The company has two SMR technologies approved by the U.S. Nuclear Regulatory Commission, giving it a competitive edge [4][6]. - NuScale has a potential customer, RoPower, a Romanian utility, which is considering six of its reactors for a large power plant. A final decision is expected within the next year [5]. - Despite being a money-losing startup, NuScale represents a long-term investment opportunity in the nuclear sector [7]. Company Analysis: Constellation Energy - Constellation Energy is the leading producer of clean electricity in the U.S., operating the largest fleet of nuclear power plants and also managing wind, solar, and hydropower facilities [8]. - The company has secured long-term power supply agreements with major tech companies like Microsoft and Meta Platforms, which are expected to significantly boost earnings. Constellation anticipates a compound annual growth rate of over 13% in adjusted operating earnings through 2030 [9][10][11]. - Constellation is planning a $16.4 billion acquisition of Calpine, which will enhance its position in the clean energy market and is expected to increase earnings per share by 20% next year [12][13]. Company Analysis: Cameco - Cameco is one of the largest uranium miners globally, benefiting from the increasing demand for low-carbon electricity sources. The company's uranium segment reported a 46% increase in pre-tax net income in Q2 due to higher sales volumes and prices [15]. - Cameco also holds a 49% stake in Westinghouse Electric, contributing significantly to its profits. The company reported a pre-tax profit of $126 million from Westinghouse, marking a turnaround from a loss the previous year [16]. - With commitments to deliver an average of 28 million pounds of uranium per year through 2029, Cameco is well-positioned to capitalize on the nuclear energy resurgence while maintaining a strong balance sheet [17].