Those with the inclination and willingness to invest in making it happen have several options from which they can pick, each having an advantage and disadvantage.
The status of investment today
President Donald Trump, in his January 20, 2025 inaugural speech, invoked a “national energy emergency” to move forward with expedited clearance of energy infrastructure for energy projects, including nuclear power. That was echoed by Energy Secretary Chris Wright, who said, “The long-awaited American nuclear renaissance must start under President Trump’s administration.”
Such political momentum is driven by increasing power demand due to the AI revolution and electrification trends. The nuclear sector, though, is in tatters, if the latest market instability is any guide. Bids that Microsoft had canceled its data center lease for digital infrastructure sent stocks of nuclear power utilities such as Constellation Energy and Vistra Corp plummeting. The reaction in the markets was too bearish, says analyst Paul Dotson, since it had been driven by recent momentum and investor speculation.
Investment possibilities in nuclear power
There are numerous opportunities through which an investor can put money into the nuclear power industry:
- Uranium miners: Nuclear power reactors utilize uranium as a fuel. Uranium miners like Cameco (CCJ), the world’s largest uranium miner, are right at the top of the supply chain. Cameco’s dominant market share provides investors with pure exposure to the raw material that is being consumed to produce power in nuclear power reactors.
- Operators of nuclear generating plants: Companies owning and operating nuclear reactors are one of the leading sources of electricity production. Constellation Energy (CEG), for example, owns and operates 21 reactors in the United States which represent some 19,400 MW of generation capacity that is enough to power some 20 million homes. As massive as that generating capacity is, Constellation has a market.
- Exchange-traded funds (ETFs): ETFs like the VanEck Uranium+Nuclear Energy ETF (NLR) for diversification maintain a basket of uranium mining and nuclear energy stocks. NLR has enormous positions in Constellation Energy and Cameco, providing investors with exposure to the sector with diversification.
Global challenges and perspectives
Nuclear investment is also driven by global trends. Romania, for example, is striving to acquire American-funded nuclear growth, including the development of two 700 MW reactors and a small modular reactor facility. The leadership does not care about political disillusionment as Romanian Energy Minister Sebastian Burduja reaffirmed the importance of the projects and further reported that high-level American company participation and United States investment should guarantee their advancement.
While Germany is clinging to nuclear opposition. Vice-Chancellor and Energy Minister Robert Habeck reaffirmed that Germany was not reconsidering nuclear in citing the reasons of lengthy building times, risk capital, and technological hurdle to remove radioactive waste. Germany is looking at green energy and wants them to produce 80% of electricity by the end of the decade.
Considerations for investors
Although the nuclear power sector has bright prospects, potential investors must remember the following:
- Market volatility: The recent market volatility due to innovation in the AI industry has gone to highlight the fact that shares in the nuclear power sector are under greater technological if not economic pressures.
- Regulatory environment: Political cronyism in itself with the current US government policy could be a very strong force within the regulatory environment. Policy or leadership changes, however, shift the investment climate.
- International competition: Global rivalry by countries such as Russia and China to boost their nuclear capabilities drives world uranium availability and technology development.
