Nuclear energy is emerging as a crucial player in meeting the surging electricity demands driven by artificial intelligence and data centers. With projections indicating that data centers will consume nearly as much power as a quarter of U.S. homes by 2028, major tech companies like Microsoft and Alphabet are partnering with nuclear firms such as Constellation Energy and NextEra Energy to revive decommissioned plants. Small modular reactors (SMRs) are particularly promising, offering localized power solutions that could support clusters of AI data centers.

BWX Technologies (BWXT) stands out in the SMR landscape due to its extensive experience in nuclear reactor design and manufacturing. Unlike many competitors reliant on investor funding, BWX generates consistent revenue, reporting $3.1 billion in 2025, a significant 18% increase from the previous year. This financial stability positions BWX as a safer investment in the nascent SMR market, which has substantial growth potential as demand for nuclear-powered solutions expands.

For market professionals, BWX represents a compelling opportunity to capitalize on the intersection of nuclear technology and the evolving energy needs of the tech sector, making it a noteworthy stock to watch as SMR developments progress.

Source: fool.com