Nuclear Power Stocks Lead Global Renaissance

Nuclear power is experiencing a global renaissance driven by rising data center and artificial intelligence demand. The industry needs stable, consistent energy to meet this growing need. In response, dozens of nations have committed to tripling global nuclear capacity by 2050.

Constellation Energy (NASDAQ: CEG) and Cameco Corporation (NYSE: CCJ) are leading the charge in the US nuclear market. Constellation operates the largest nuclear fleet in the country, producing over 180 terawatt hours of annual nuclear generation. The company has signed long-term power purchase agreements with major corporate buyers like Microsoft and Walmart.

Constellation's revenue grew by 22.9% in the second quarter to $7.5 billion, while adjusted earnings per share were up 33.5%. The company benefits from the Nuclear Production Tax Credit (PTC) under the Inflation Reduction Act, which creates a statutory revenue floor for nuclear power output.

Cameco, on the other hand, is one of the largest providers of nuclear fuel. It has 433 million pounds of proven and probable uranium reserves, including high-grade deposits in Saskatchewan's Athabasca Basin. The company also owns a mine in Kazakhstan and has a joint venture with Westinghouse Electric Company.

Cameco's revenue was $814 million in the second quarter, down 7% year over year, but its uranium segment reported a 15% increase in revenue to $712 million. The company expects average realized prices for uranium to be between $91 and $96 per pound in 2026.