3 Nuclear Names to Watch as Power-Hungry AI Continues to Drive Demand

The quest for energy is never ending, and the rise of artificial intelligence has brought with it a new sense of urgency to this matter. Mega-cap corporations like Microsoft MSFT, Meta Platforms META, and Alphabet GOOGL are at the forefront of this power-hungry quest.

Microsoft plans to reopen the Three Mile Island plant in Middletown PA, the site of the nation’s worst nuclear disaster. Supporters of nuclear energy claim it’s clean and convenient, while opponents say nuclear plants are prone to accidents and vulnerable to terrorist attacks.

According to the MIT Technology Review, many new AI-focused data centers will require 500 megawatts or more of power. That’s great news for companies that are involved in the construction and operation of nuclear plants.

Late last year, we made several recommendations in that sector. Now that nuclear power is picking up steam, I’d like to revisit those calls — what did we get right, where did we go wrong, and what’s our next move? 

GE Vernova 

GE Vernova GEV is a standalone energy company that emerged when the old General Electric was split into three independent entities — GE Vernova, GE Healthcare GEHC, and GE Aerospace GE.

When we recommended GE Vernova in November of last year, the stock was trading near $350. Since then, the stock has gained 45%. On Tuesday, GE Vernova jumped 2% to reach a new all-time closing high of $510.

Because this stock is already trading at all-time highs, it’s difficult to predict how high GE Vernova will rise. Investors can take comfort in the knowledge that this stock has gained 273% since it started trading in March of 2024. Based on the stock’s trajectory, I see no reason to sell GE Vernova.

BWX Technologies 

Have you ever bought the right stock at the wrong price? That’s what I did with BWX Technologies BWXT, a Lynchburg, Virginia-based supplier of nuclear components.

This stock has been solid, gaining 27% year-to-date. However, because I fumbled the entry, I’m only up by 7% since I recommended this stock last November. 

That’s no reason to turn sour on BWX Technologies. Despite my terrible entry, I’m staying long this stock.

NuScale Power

This one hurts. I graded this stock B+ six months ago, but NuScale Power's SMR outrageous returns — including a 643% gain last year — caused me to hold off on buying.

That means I missed out on NuScale’s additional year-to-date gain of 144%. Ouch.

This week, analysts at Citi started coverage of this stock, giving it a hold rating and a $46 target price. Oregon-based NuScale responded by roaring higher by 18.4% on Tuesday. Imagine if Citi had actually given it a buy rating.

While this stock still has potential, I can’t chase NuScale. I have strict rules against chasing stocks, so for now, NuScale will have to be the one that got away.

Bottom Line

While I enjoy picking individual stocks, in this case, exposure to the sector is of the utmost importance. This is a speculative sector, so it makes sense to spread the risk across a basket of names. 

If you’re like me and you hate to chase stocks, be patient — these are volatile names. Nuclear stocks can soar, but they can pull back with just as much force. 

At the time of publication, Ponsi was long GEV and BWXT.