2025 looks set to be a banner year for nuclear energy companies. Energy demand has never been higher: The US Energy Information Administration estimates that total electricity demand in the United States will be 4.1 trillion kilowatt-hours (kWh) in 2024, a record, and estimates for 2025 are even higher. In addition, demand is particularly high for clean energy sources that have minimal negative impact on the climate, and nuclear power meets this need well.
There are even more reasons to be excited about nuclear stocks in 2025: Companies finally have clarity on the tax breaks for clean hydrogen production outlined in the Inflation Relief Act of 2022, and nuclear companies could benefit from it; Congress banned imports of enriched uranium from Russia, a major supplier, in 2024, further incentivizing domestic companies; and microreactor technology is thriving, potentially shortening the path to clean energy solutions for remote areas and other underserved populations.
Amid all this, the boom in artificial intelligence is a major driver of interest in nuclear power. AI energy needs are growing rapidly, and 14 gigawatts of new energy could be required by 2030; in some cases, AI energy needs are projected to reach a third of the country’s total energy needs as early as next year. Although investors can certainly look for a targeted nuclear ETF such as the VanEck Uranium and Nuclear ETF. NYSEARCA:NLRThere are three companies that may be worth paying attention to at the moment.
Oklo: serving data center clients with agreements to back it up
Oklo today
- 52 week range
- $5.35
▼
$31.91
- Target price
- $22.33
If it seems that Oklo Inc. New York Stock Exchange: OKLO created specifically for the needs of artificial intelligence companies, it is not surprising that OpenAI leader Sam Altman is the chairman of the board of directors of this nuclear company. Oklo’s modular reactors specialize in producing low-carbon, continuous power that precisely meets the needs of artificial intelligence companies that want to power data centers with electricity. The company is on track to become one of the first nuclear companies to bring its small modular reactors to market.
Data center providers are listening. In December 2024, Oklo announced that it had signed a non-binding agreement to provide a total of 12 gigawatts of power to data center operator Switch in Las Vegas until 2044.
Oklo remains small, with a market capitalization of just $3.0 billion as of January 16, 2025. However, the stock has already grown rapidly, rising more than 128% in the year leading up to that date. If deals like the Switch deal continue, it could help push Oklo shares even higher.
Oklo Inc. price chart (OKLO) on Friday, January 17, 2025
Cameco: advantageous position and investment
Kameko today
- 52 week range
- $35.43
▼
$62.55
- Dividend yield
- 0.23%
- P/E ratio
- 274.44
- Target price
- $66.56
Kameko company. New York Stock Exchange: CCJ is the largest publicly traded uranium company with a market capitalization of over $21.5 billion as of January 16, 2025. With recent moves by the U.S. Department of Energy to increase uranium enrichment capacity, Cameco is poised to benefit.
It’s unclear how the U.S. government’s nuclear energy policy might change with the new administration, but Cameco’s significant reserves and significant production capacity should ensure it remains competitive no matter what. The company also has strategic investments, including a 49% stake in nuclear power plant technology company Westinghouse, giving it a clear path to streamline operations and potentially increase revenue.
Analysts are bullish on Cameco, with all seven analyst ratings on the company at Buy as of January 16, 2025, with upside potential of nearly 35%.
Cameco Co price chart (CCJ) on Friday, January 17, 2025
NANO-nuclear energy: a promising direction with microreactors
Nanonuclear energy today
Nanonuclear energy
- 52 week range
- US$3.25
▼
$37.51
- Target price
- $58.00
NANO Nuclear Energy Inc. NASDAQ: NNE is a small, promising nuclear company founded just three years ago. The company’s market capitalization is about $857 million, which is significantly less than many other players in the space. It’s a no-revenue firm, but it’s a riskier bet than an established nuclear company like Vistra Corp. New York Stock Exchange: VST.
However, NANO’s microreactor developments mentioned above may require closer attention from investors with a higher risk tolerance. In addition, NANO is strengthening its position in this sub-industry by completing the purchase of undisclosed assets related to Ultra Safe Nuclear Corp.’s modular nuclear reactor business in mid-January. Two analysts have rated NANO a Buy and set a consensus price target of $58.00, up nearly 148% from its current level as of January 16th.
Cameco Co price chart (CCJ) on Friday, January 17, 2025
Before you consider Oklo, you should hear this.
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