If you’re paying close attention to global trends, it’s clear that artificial intelligence, robotics, data centers, and electric vehicles (EVs) are radically transforming global energy demands. The rapid expansion of this technological infrastructure means we are poised to consume an unprecedented amount of electricity.
To meet this surging demand sustainably, we need a reliable, consistent, and carbon-free energy source.
Nuclear power stands out as the ideal solution.
Why Nuclear? Recent Global Events Prove the Point.
To illustrate this, consider the contrasting approaches of Germany and France in recent years:
In 2023, Germany shut down its remaining nuclear reactors, fulfilling a long-term objective of the Green Party to rely primarily on solar and wind energy. Unfortunately, this decision quickly turned problematic. Electricity prices surged dramatically, exceeding €200 per megawatt-hour, due largely to "Dunkelflaute", extended periods of low wind and minimal sunlight. Germany’s famously gray skies unsurprisingly hindered solar power generation, forcing the country to restart coal plants and become a net importer of electricity. The transition was disastrous and contributed to economic strain, highlighting Germany’s troubling trend of energy mismanagement, alongside previous decisions such as relying heavily on Russian gas and controversial immigration policies.
In stark contrast, France doubled down on nuclear power in 2023. The result? France now boasts the lowest electricity costs in the European Union and has even started exporting electricity to Germany to help alleviate its neighbor’s shortages.
Recognizing this reliable supply of clean and affordable nuclear energy, NVIDIA has announced plans to construct Europe's largest data center in France by 2028.
Additionally, the World Bank recently lifted its ban on nuclear energy funding, further validating nuclear power’s pivotal role in the future energy landscape. Other nations have noticed France’s success: Denmark and Belgium have both removed bans on nuclear energy, signaling a shift towards embracing nuclear power. Similarly, Poland has partnered with the American firm Westinghouse, partly owned by uranium giant Cameco, to develop its nuclear energy capabilities.
Firmly believe that nuclear energy represents one of the strongest investment opportunities today. Global power demands will inevitably drive governments and corporations toward nuclear solutions, making this a high-conviction play for forward-thinking investors.
Here’s how you can tap into the nuclear energy trend through carefully selected stocks and ETFs:
1. $CCJ - Cameco Corp.
Cameco Corporation, headquartered in Canada, is the largest publicly traded uranium producer in the world. The company engages in the exploration, mining, refining, conversion, and sale of uranium. With strategic long-term supply contracts and vertically integrated operations spanning multiple continents, Cameco is ideally positioned to benefit from rising uranium prices and increased global nuclear energy demand.
Constellation Energy is a premier American energy provider and operates the largest fleet of nuclear power plants in the United States. It specializes in carbon-free power generation, primarily nuclear, and also provides clean energy solutions across wind, solar, and hydroelectric sectors. Constellation’s extensive nuclear fleet and stable energy contracts make it a leading player in the transition to a low-carbon economy.
Centrus Energy Corporation is an American company specializing in uranium enrichment and the development of advanced nuclear fuels critical for next-generation reactors. It plays a pivotal role in supplying enriched uranium products and services to commercial nuclear power plants and government clients. Centrus is strategically positioned to benefit from rising demand for advanced reactor fuels and new nuclear technologies, particularly small modular reactors (SMRs).
4. $SMR - Nuscale Power Corp
NuScale Power Corporation is a pioneering American firm specializing in the design and commercialization of Small Modular Reactors (SMRs). NuScale’s SMRs offer significant advantages over traditional nuclear reactors, including enhanced safety, lower initial capital requirements, scalability, and simplified construction and operation. As the first company to receive U.S. Nuclear Regulatory Commission certification for an SMR design, NuScale is strategically positioned to benefit significantly as countries and utilities look to adopt flexible nuclear solutions for cleaner energy production.
Growth & Risk Considerations:
Cameco ($CCJ) and Centrus ($LEU) provide direct exposure to uranium and nuclear fuel markets, aligning closely with commodity price movements. Cameco is lower-risk due to its size and market position, whereas Centrus is more specialized but offers substantial upside potential.
Constellation ($CEG) provides stability through regulated markets, regular cash flows, and dividend potential, appealing to more conservative investors seeking consistent returns. Meta’s investment and agreement with Constellation ($CEG) underscores increasing corporate validation of nuclear energy as a clean power solution.
NuScale ($SMR) represents the highest risk-reward scenario, as it focuses on a new and potentially revolutionary technology, providing substantial upside but also higher uncertainty. NuScale’s regulatory milestones position it strongly to benefit from future government and corporate adoption of innovative nuclear technologies.
Global X Uranium ETF ($URA)
The Global X Uranium ETF offers investors targeted exposure to uranium mining, exploration, and nuclear energy companies worldwide. Designed to leverage rising uranium prices and increasing nuclear energy adoption, URA provides comprehensive coverage of the uranium sector with an international focus.
Key Holdings:
- Cameco Corp. (CCJ) – World's largest publicly traded uranium producer.
- NAC Kazatomprom (KAP.LI) – World's largest uranium producer based in Kazakhstan.
- NexGen Energy Ltd. (NXE) – Major Canadian uranium exploration and development company.
- Denison Mines Corp. (DNN) – Prominent Canadian uranium mining firm.
- Energy Fuels Inc. (UUUU) – Leading U.S.-based uranium miner and processor.
VanEck Uranium+Nuclear Energy ETF ($NLR)
VanEck’s Uranium+Nuclear Energy ETF provides balanced exposure to the broader nuclear energy sector, including uranium miners, nuclear power plant operators, and supporting infrastructure providers. NLR aims to deliver stability and dividend potential through diversified investments, making it suitable for investors looking to tap into nuclear energy with moderated risk.
Key Holdings:
- Constellation Energy Corp. (CEG) – Largest U.S. nuclear power plant operator.
- Cameco Corp. (CCJ) – Leading global uranium producer.
- Public Service Enterprise Group (PEG) – Prominent U.S. utility company with significant nuclear generation assets.
- Dominion Energy Inc. (D) – Major utility company with nuclear facilities in the United States.
- Kansai Electric Power Co. (9503.JP) – Leading Japanese utility and nuclear operator.
Which ETF is right for you?
The Global X Uranium ETF (URA) is more concentrated in uranium mining and exploration companies, offering higher potential upside but also greater volatility, especially tied to uranium prices. In contrast, the VanEck Uranium+Nuclear Energy ETF (NLR) takes a more diversified approach by including nuclear utilities and infrastructure providers, resulting in lower volatility and more stable dividend yields.
From a cost perspective, URA has a higher expense ratio of 0.69%, while NLR is slightly more cost-efficient at 0.61%. Over the past 5 years, URA has generally outperformed NLR during periods of rising uranium prices, but NLR has provided more consistent returns and income due to its exposure to regulated utilities. Investors seeking growth may prefer URA, while those looking for stability and income may lean toward NLR..
The surge in AI, cloud computing, and data centers guarantees that global electricity demand will rise sharply in the coming years. Recognizing this, tech giants including Amazon, Google, and Meta have publicly supported a recent pledge, led by the World Nuclear Association, calling for nuclear energy capacity worldwide to triple by 2050.
Of course, I'm fully aware of the historical concerns around nuclear power. Born in Eastern Europe in 1986 (the very year of the Chernobyl disaster), I understand firsthand the lingering fears and stigma associated with nuclear energy. Events like Chernobyl and Fukushima have understandably created caution around nuclear technology.
However, the nuclear landscape today is vastly different. Significant technological advancements and rigorous safety standards have dramatically improved the safety and reliability of nuclear reactors. Modern designs, such as Small Modular Reactors (SMRs), promise unprecedented levels of safety, efficiency, and scalability.
As stigmas begin to fade with growing awareness of these improvements, nuclear power is increasingly viewed as an essential, safe, and sustainable part of the world's energy future. For forward-looking investors, positioning in nuclear energy now presents an extraordinary opportunity.
Ultimately, nuclear isn't just another investment, it's a strategic opportunity to capitalize on a transformative global shift driven by technology, policy, and climate considerations.
