Nuclear Energy Sector Poised for Long-Term Growth Amid AI Power Demand

The intersection of artificial intelligence infrastructure and energy security is fueling a renewed interest in nuclear power, with several key companies emerging as strategic long-term plays. The surge in data center energy needs is creating a structural demand for reliable, carbon-free baseload power, positioning nuclear energy as a strategically critical resource. Cameco (CCJ), the world's second-largest uranium producer, accounted for 17% of global production in 2024. The company's financial trajectory remains strong, with 2025 revenue growing 11% to $3.48 billion and adjusted EBITDA increasing by 26%. While the stock trades at a significant premium with P/E ratios above 120, its extensive backlog of uranium commitments provides substantial revenue visibility. Constellation Energy (CEG), which operates the largest nuclear fleet in the United States, is targeting earnings-per-share growth of more than 20% through 2029. To support this growth, the company is investing nearly $4 billion in growth capital expenditures. Shareholders are seeing direct benefits through a $5 billion share buyback program for 2026 and consecutive 10% dividend increases in 2025 and 2026. In the speculative segment, Oklo (OKLO) is developing small nuclear reactors. Although currently a pre-revenue company awaiting full licensing from the Nuclear Regulatory Commission, Oklo has gained significant credibility through a collaboration with Nvidia and the Los Alamos National Laboratory to support the federal government's Genesis Mission. The company anticipates generating real revenue by 2027.