ETFs to Play the Potential $10 Trillion Nuclear Surge

Core Insights - Nuclear power is becoming increasingly important due to rising demand for AI and reliable energy generation, particularly for data centers that support AI applications [1][5] - A Bank of America report estimates that nuclear power represents a $10 trillion opportunity to address global energy shortages, driven by strong demand, government support, and a positive public outlook [2] - Goldman Sachs projects a significant increase in nuclear energy supply in the coming years, driven by the need for cleaner energy and reliable electricity [3] Industry Trends - The Trump administration is prioritizing nuclear power over wind and solar, offering support through loan guarantees and tax incentives [4] - The global AI market is expected to exceed $1 trillion by 2031, increasing the demand for nuclear power as tech companies invest in data centers [6] - Nuclear capacity needs to triple by 2050 to support global electrification, with over $3 trillion in investments projected over the next 25 years [7] Technological Developments - Small modular reactors (SMRs) are emerging as a solution to the challenges faced by large nuclear plants, potentially speeding up the deployment of new facilities [9] - SMRs are considered one of the most consequential energy technologies for the next 25 years, crucial for meeting rising energy demands [9] Investment Opportunities - Nuclear-focused ETFs are gaining momentum, reflecting a bullish outlook from investors [10] - Notable performance of nuclear ETFs includes: - VanEck Uranium+Nuclear Energy ETF (NLR): +22.02% over the past three months, +58.34% over the past year [10] - Range Nuclear Renaissance Index ETF (NUKZ): +16.17% over the past three months, +78.76% over the past year [11] - Themes Uranium & Nuclear ETF (URAN): +15.8% over the past three months, +37.54% year to date [11] - Global X Uranium ETF (URA): +27.07% over the past three months, +62.28% over the past year [11] - Sprott Junior Uranium Miners ETF (URNJ): +34.10% over the past three months, +26.76% over the past year [11]