The surge in demand for nuclear energy, particularly small modular reactors (SMRs), is being fueled by the growing energy needs of artificial intelligence (AI) data centers. Companies like BWX Technologies and Rolls-Royce are positioned to capitalize on this trend, leveraging their established revenue streams to develop SMR technology. BWX’s Advanced Nuclear Reactor (BANR) is designed to generate 75 megawatts, while Rolls-Royce’s prototype can produce up to 470 megawatts, making both viable solutions for powering data centers and potentially entire neighborhoods.

For investors, the financial stability of BWX and Rolls-Royce sets them apart from cash-strapped start-ups in the SMR sector. BWX reported an 18% revenue increase in 2025, reaching $3.19 billion, while Rolls-Royce saw a 12.15% rise to $21.21 billion. Their solid profit margins—10.31% for BWX and 27.52% for Rolls-Royce—underscore their capacity to fund innovative projects without the risks associated with newer entrants.

As the nuclear energy landscape evolves, BWX Technologies and Rolls-Royce represent lower-risk investment opportunities in the burgeoning SMR market, making them attractive options for portfolio diversification in the energy sector.

Source: fool.com