This One Shocking Nuclear Energy Stock Could Make You a Millionaire—Will You Miss Out?

As we look toward 2026, the question arises: Can nuclear energy companies continue their upswing as the demand for electricity rises, particularly driven by the burgeoning field of artificial intelligence (AI)? The answer seems increasingly clear—nuclear energy is making a significant comeback.

After years of stagnation, nuclear firms are reigniting interest and investment, largely due to their ability to provide carbon-free electricity consistently. This reliability is crucial as the world grapples with increasing energy needs. Unlike solar and wind energy, which depend on weather conditions, nuclear power offers a steady output, making it an attractive option for powering the data centers that AI technologies require.

Several nuclear start-ups have recently piqued investor interest, showcasing innovative concepts. Companies like NuScale Power, known for its small modular reactor designs, Oklo, and Nano Nuclear Energy are at the forefront of this innovation. However, none can compare in scale or profitability to the established giant, Constellation Energy, which is emerging as a key player in this renewed nuclear landscape.

As of now, Constellation Energy's stock is trading at about $288.96, with a market capitalization of approximately $90 billion. The company's trailing twelve-month revenue has shown robust growth, reflecting the rising demand for power, particularly as AI continues to expand. In comparison, the revenue forecasts for newer entrants like Oklo, Nano, and NuScale still lag significantly behind.

Established Leader in Nuclear Energy

While the aforementioned start-ups are still in their infancy—none have generated substantial revenue, and only NuScale has received approval from the Nuclear Regulatory Commission (NRC) for its reactor design—Constellation Energy operates the largest fleet of nuclear power plants in the United States. This extensive infrastructure positions Constellation uniquely in a market that demands both reliability and sustainability.

Additionally, Constellation has secured pivotal contracts with major technology firms. Notably, it has a 20-year agreement with Meta Platforms that guarantees the full output of the Clinton nuclear plant, and has involvement from Microsoft in the restoration of the aging Three Mile Island reactor. These contracts underscore the growing collaboration between tech giants and nuclear energy producers to meet escalating electricity demands.

In terms of profitability, Constellation has demonstrated impressive earnings growth. The company not only benefits from a favorable market landscape but also operates under a business model that allows it to sell electricity at market rates rather than being confined to government-set prices like many regulated utilities. This flexibility can lead to greater financial upside when electricity prices are high, although it does introduce some volatility and associated risks, particularly in regional markets.

However, potential political risks loom over Constellation, especially concerning price caps on existing power sources in the mid-Atlantic area, where the company operates. Former President Donald Trump and regional governors appear aligned on a plan that could limit pricing power, which may restrict Constellation's growth in that region.

The company's stock trades at around 35 times trailing earnings and over 7.5 times book value, indicators of a company that carries high expectations from investors. While the opportunity for future growth remains—especially with forecasts suggesting that AI-related electricity demands will escalate—investors must weigh these opportunities against the inherent risks.

For those seeking nuclear energy exposure without the volatility associated with individual stocks, nuclear energy exchange-traded funds (ETFs) may be a less risky alternative. These funds can provide diversified access to the nuclear sector, mitigating some of the uncertainties presented by investing in start-up companies.

In conclusion, as nuclear energy experiences a resurgence, companies like Constellation Energy stand at the helm, poised to not only meet but potentially exceed the rising energy demands of the future. With its established operations, strategic partnerships, and innovative technologies, Constellation is positioned to lead in a market that increasingly recognizes the value of reliable, carbon-free energy.