2 Best Nuclear Power Stocks Right Now
Key Points
Constellation has several long-term service agreements to provide nuclear power to hyperscalers.
Cameco Corporation benefits from the U.S. ban on Russian uranium.
Constellation is close to restarting the Crane Clean Energy Center.
- 10 stocks we like better than Constellation Energy ›
Nuclear power is experiencing a structural global renaissance, driven by rising data center and artificial intelligence (AI) demand, with companies needing stable, consistent energy.
Dozens of nations have committed to tripling global nuclear capacity by 2050, and nuclear power supply remains severely constrained relative to this long-term demand curve.
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Constellation Energy (NASDAQ: CEG) and Cameco Corporation (NYSE: CCJ) are great ways to play the rising use of nuclear energy in the U.S., but for different reasons. Constellation is one of the largest providers of nuclear energy, while Cameco is one of the biggest providers of nuclear fuel.
Here's why each stock is a solid long-term purchase.
Image source: Getty Images.
Constellation is a pure-play way to play AI and data center growth
Constellation operates the largest nuclear fleet in the United States, producing more than 180 terawatt hours (TWh) of annual nuclear generation. Unlike solar or wind, nuclear provides nonstop carbon-free baseload power. Tech hyperscalers such as Microsoft, Meta Platforms, Amazon, and Alphabet, that are building AI-driven data centers, face strict zero-emissions targets and require constant, uninterrupted power.
Constellation commands a distinct scarcity premium here, as evidenced by major multidecade agreements, including its landmark 20-year power purchase agreement (PPA) with Microsoft to restart the Crane Clean Energy Center (Three Mile Island Unit 1), and long-term nuclear PPAs with major corporate buyers such as Walmart.
The company recently received an important fuel license approval from the Nuclear Regulatory Commission for the Crane Clean Energy Center, and the Federal Energy Regulatory Commission (FERC) approved a waiver to transfer existing capacity interconnection rights (CIR) from its Eddystone Natural Gas Power Plant to Crane.
Constellation is seeing revenue growth
Nuclear power forms the absolute bedrock of Constellation's financial performance. In the second quarter, the company reported $7.5 billion in revenue, up 22.9% from the same quarter a year ago, while adjusted earnings per share (EPS) were $2.55, up 33.5% year over year.
The company signed an additional 920 megawatts (MW) of long-term power purchase agreements for nuclear generation with a diverse set of customers, providing transparent long-term revenue visibility.
Under the Inflation Reduction Act (IRA), Constellation benefits from the Nuclear Production Tax Credit (PTC). This creates a statutory revenue floor for nuclear power output, protecting top-line margins if wholesale power prices plunge, while leaving upside uncapped when market power prices (or premium data center PPAs) rally.
Cameco provides Western nations with dependable uranium
Cameco has 433 million pounds of proven and probable uranium reserves, including the world's highest-grade and lowest-cost uranium deposits in Saskatchewan's Athabasca Basin, mainly Cigar Lake and McArthur River/Key Lake. It also owns a mine in Kazakhstan.
The mines' high ore grades mean Cameco can extract significantly more uranium per metric ton of rock than competitors, insulating its profit margins even during cyclical pullbacks. As Western nations aggressively phase out dependence on Russian nuclear fuel and processing, Cameco stands out as a safe, Western-aligned supplier with Tier-1 sovereign risk profiles. It has sales of 28 million pounds of uranium per year, contracted through 2030.
The company isn't just a uranium miner
Through its 49% joint venture ownership of Westinghouse Electric Company, alongside Brookfield Renewable Partners (NYSE: BEP), Cameco transformed from a commodity miner into a fully integrated nuclear services giant. Westinghouse tech is utilized in roughly 57% of operating nuclear reactors worldwide, providing recurring, high-margin revenue from maintenance, refueling, software, and replacement parts.
Westinghouse also provides direct exposure to the construction of new large-scale reactors, which gives Cameco cash flow streams across every phase of the nuclear lifecycle, including mining, fuel fabrication, and reactor servicing.
Uranium sales are lifting the company's finances
In some ways, Cameco's ownership of Westinghouse stock dragged down the company in the second quarter. Overall, EPS was $0.18, down 75% year over year. Revenue was $814 million, down 7% over the same period last year. However, much of that is due to the timing of customer requirements, which increase in the winter months.
However, the company's uranium segment reported revenue of $712 million, up 15% year over year, and adjusted EBITDA of $423 million, up 48% year over year. The company released encouraging guidance for 2026.
It said it expects the average realized price per pound for uranium to be between $91 and $96 per pound, up from $85 to $89, and expects uranium revenue to be between $2.7 billion and $2.91 billion, up from $2.54 billion to $2.73 billion. Cameco also increased its forecast for fuel services revenue to $610 million to $630 million, up from $590 million to $630 million. The company also predicts overall revenue to be between $3.32 billion and $3.75 billion, up from $3.13 billion to $3.37 billion.
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James Halley has positions in Alphabet, Brookfield Renewable Partners, and Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, Cameco, Constellation Energy, Meta Platforms, Microsoft, and Walmart. The Motley Fool recommends Brookfield Renewable Partners. The Motley Fool has a disclosure policy.
