The U.S. nuclear energy sector is gaining traction as data centers drive electricity demand, prompting renewed interest in nuclear stocks. President Trump’s executive orders aim to quadruple the country’s nuclear capacity to 400 gigawatts by 2050, spotlighting companies like NuScale Power and Constellation Energy. While both firms are positioned to benefit from this nuclear boom, they represent different investment profiles.
Constellation Energy, with a market cap of $88 billion, is the largest U.S. nuclear operator, boasting a diversified portfolio and established revenue streams. Its recent agreements with tech giants Microsoft and Meta for long-term electricity supply further solidify its growth trajectory, with analysts projecting a 15% annual earnings increase. In contrast, NuScale, valued at under $4 billion, is focused on developing small modular reactors (SMRs) but faces significant operational and regulatory hurdles, delaying revenue generation.
For investors, Constellation Energy presents a more stable option, offering a growing dividend and established market presence, while NuScale’s potential upside comes with considerable risks and uncertainty.
Source: fool.com