3 Nuclear Power Stocks to Buy in 2025 for an AI Gold Rush

The rise of artificial intelligence (AI) technologies is sending shockwaves through the energy sector, leading to an unprecedented demand for reliable electricity to power the data centers central to this technological revolution. As AI systems become integral across many industries, including automotive and consumer applications, the push for secure and sustainable power sources intensifies. In this context, nuclear power is regaining considerable attention due to its dual advantages of reliability and zero emissions. Here, we discuss three key companies in the nuclear power sector that are well-positioned to benefit from this trend by 2025: Vistra Energy (VST), Oklo (OKLO), and Constellation Energy (CEG).

Nuclear Energy Stock #1: Vistra Energy

With a market cap of $56.7 billion, Vistra Energy (VST) is one of the U.S.’s leading retail energy producers. The company operates a robust capacity of approximately 41 gigawatts, which is derived from a diverse portfolio that includes nuclear, natural gas, coal, and solar energy, along with hosting one of the world’s largest utility-scale battery projects. Recent legislative changes, particularly the new tax credits under President Biden’s climate law, favor nuclear plants, benefitting companies like Vistra.

On December 17, Vistra announced that two utility-scale solar projects in Illinois have gone live, signaling its commitment to renewable energy. Additionally, the company has updated its retirement plans for the Baldwin Power Plant in Illinois, now extending operations to 2027 in response to reliability concerns within the MISO market.

In its Q3 earnings report on November 7, Vistra reported a staggering 53.9% increase in operating revenues year-over-year, totaling $6.28 billion. The GAAP EPS reached $5.25, significantly surpassing analyst estimates. Notably, the integration of Harbor Energy is contributing positively to both revenue and profits. The company also generated a robust cash flow of $1.7 billion from operations and announced a $1 billion share repurchase plan. Looking ahead, Vistra’s guidance for FY24 adjusted EBITDA ranges between $5 billion and $5.2 billion, reflecting a promising growth trajectory.

Nuclear Energy Stock #2: Oklo

Oklo (OKLO) stands out in the nuclear landscape as a startup backed by OpenAI’s Sam Altman, focusing on advanced nuclear technology that generates clean and reliable energy. The company’s unique business model revolves around constructing and operating small, scalable reactors known as “powerhouses,” which provide continuous low-carbon electricity. Currently valued at $3.1 billion, Oklo’s small modular reactors (SMRs) have garnered significant attention, particularly from large tech companies seeking dependable energy for their data centers.

However, Oklo is still in the developmental stage and will not generate revenue for some time. In its most recent quarterly earnings on November 14, the company posted operating expenses of $12.28 million as it ramps up R&D efforts to bring its SMRs to market by late 2027. Despite this, Oklo’s future looks secure with $288.5 million in cash and short-term investments. Additionally, the company’s customer pipeline has grown from 1,350 MW to 2,100 MW, reflecting its increasing market confidence.

Nuclear Energy Stock #3: Constellation Energy

Constellation Energy (CEG) is a Maryland-based electricity provider that generates and sells energy across the U.S. With a capacity of approximately 33,100 MW—67% of which comes from nuclear power—Constellation is poised to tackle the rising energy demand sparked by the AI boom. In early January, shares soared over 25% following the announcement of a cash-and-stock deal to acquire Calpine, valued at $26.6 billion. This merger positions Constellation as the leading independent power provider in the country, extending its footprint across various clean energy sources.

In its Q3 earnings report released on November 4, Constellation Energy reported 7.2% year-over-year revenue growth, resulting in $6.55 billion, significantly beating analysts’ expectations. Moreover, the company maintains a robust balance sheet with an investment-grade rating of BBB+ and a leverage ratio around 2.0x. Constellation aims for a minimum of 13% annual base earnings growth by 2030, driven by the increasing demand for reliable, carbon-free power. A partnership with Microsoft enables the restart of the Three Mile Island Unit 1, showcasing the company’s commitment to advancing clean energy initiatives.

As these nuclear power companies adapt to the growing energy needs propelled by the AI revolution, they emerge as potential beneficiaries in an increasingly electrified future.