Three distinct approaches to nuclear power — from small reactors to established utilities to advanced fuel tech — could help power big tech’s AI ambitions.
The artificial intelligence (AI) revolution is creating an unprecedented surge in energy demand. The International Energy Agency projects that data centers may account for up to one-third of the anticipated increase in U.S. electricity demand from 2024 through 2026.
Major tech companies are making bold moves into nuclear power to meet their growing energy needs. Microsoft (MSFT 0.80%) recently signed a 20-year deal with Constellation Energy (CEG -0.03%) to power its data centers, while Amazon has strategically positioned a $650 million data center near Pennsylvania’s Susquehanna nuclear plant. Alphabet, the parent company of Google, has joined this nuclear renaissance by investing in advanced nuclear technologies, including fusion power.
Image source: Getty Images.
These strategic investments signal that nuclear power has become the preferred solution for tech giants’ massive energy requirements. Armed with this background, let’s explore three nuclear power stocks that could fuel the AI revolution.
The small reactor pioneer
Oklo (OKLO 5.81%), backed by OpenAI CEO Sam Altman, has emerged as a front-runner in the next generation of nuclear technology. The company’s stock has delivered a remarkable 113% return year to date since its public debut last May, significantly outperforming the benchmark S&P 500.
The company specializes in developing advanced small modular reactors (SMRs), which promise enhanced safety features and operational flexibility in a compact design. Oklo’s innovative Aurora powerhouses are scheduled to begin operations in 2027, positioning the company to meet the surging demand for reliable clean energy from tech companies expanding their AI operations.
Early investors have shown strong confidence in Oklo’s potential, despite meaningful revenue being several years away. As with most pre-revenue nuclear technology companies, though, investors should expect significant price swings along the path to commercialization.
A proven nuclear partner
As mentioned, Constellation Energy recently secured a groundbreaking 20-year agreement with Microsoft to restart a reactor at Three Mile Island. This landmark deal signals growing confidence in nuclear power’s role in the AI revolution.
The market has responded enthusiastically to Constellation’s strategic moves in the nuclear space, driving its shares up more than 126% this year, vastly outperforming the S&P 500. The company’s position as the largest nuclear operator in the U.S. gives it a significant advantage in partnering with tech giants seeking stable, carbon-free power.
With its extensive nuclear infrastructure already in place and proven operational expertise, Constellation stands out as a natural partner for tech companies racing to secure reliable power sources for their AI operations. This unique market position, combined with growing demand from the tech sector, creates a compelling growth trajectory for the company and its shareholders.
Innovation in nuclear fuel
Lightbridge (LTBR 23.95%) is revolutionizing nuclear fuel technology with its metallic fuel design. The company’s innovative approach could significantly improve the efficiency and safety of existing and future nuclear reactors.
This advanced fuel technology could prove particularly valuable as data centers drive unprecedented demand for reliable power. Lightbridge’s next-generation fuel design promises to increase power output in existing reactors while enhancing safety margins, making it an attractive solution for utilities serving tech companies’ growing energy needs.
The stock has surged alongside other nuclear technology companies as investors recognize the sector’s critical role in meeting the escalating power demands of AI data centers. While Lightbridge shares have significantly outperformed the S&P 500 this year, the company represents a unique approach to nuclear innovation through enhanced fuel efficiency that should keep its shares racing higher.
Powering the future
These three companies represent different aspects of the nuclear power renaissance, from Oklo’s innovative reactor designs to Lightbridge’s enhanced fuel technology and Constellation’s established infrastructure. Each stock offers investors a unique way to participate in nuclear power’s resurgence, making them worth considering as part of a well-diversified portfolio.
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. George Budwell has positions in Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, Constellation Energy, and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
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