Nuclear Energy Stocks Face Stagnation Amid AI Demand

Despite growing interest in nuclear power to support AI data centers, stocks like NuScale Power and Oklo have seen significant declines. The Global X Uranium ETF (URA) has dropped over 20% in a year, while the Energy Select Sector SPDR Fund (XLE) has gained more than 40%. Concerns over valuations, financing, and lengthy development timelines have led to harsh market treatment of companies yet to generate revenue. NuScale, for instance, has lost 82% of its value, even after securing regulatory approval for its SMR technology. Meanwhile, Meta and Oklo have partnered on a nuclear campus in Ohio, aiming for initial generation by 2030. Uranium miners and suppliers have also faced losses, highlighting the sector's broader challenges. For investors seeking exposure without betting on distant commercialization, established utilities offer a more stable alternative. These companies already generate revenue from nuclear power and are securing long-term contracts with tech giants. NextEra Energy, Constellation Energy, and Vistra Corp are among the top choices, with NextEra leading in market cap and diversifying its energy portfolio to include SMR technology. Constellation has signed major PPAs with Google, Microsoft, and Amazon, while Vistra recently secured a $4.2 billion loan to modernize its nuclear fleet.