You see, the FAANG companies (Facebook, Apple, Amazon, Netflix, and Google — the five letters I mentioned) are all investing heavily in nuclear because its the only energy source that can meet the enormous demands of artificial intelligence. So, as big tech continues to pour money into AI, I expect the three stocks below to do quite well. This report will also be sent to your email for future reference.
Stock #1: GE VERNOVA (NYSE: GEV)
General Electric has completed its long-awaited restructuring, marking the end of a decade-long transformation. The company has been split into separate standalone entities, with GE Aerospace retaining the original stock ticker and CEO Larry Culp, while its energy division now operates independently as GE Vernova. So far, this new energy-focused spinoff has delivered solid returns for shareholders, making it an attractive option for investors interested in nuclear energy. With roots in the nuclear power industry dating back to the 1950s, GE Vernova is among the few companies with a substantial market share in nuclear reactors.
Several factors make GE Vernova a compelling investment for those looking to tap into the nuclear energy sector. As a standalone, energy-dedicated company, Vernova’s focused capital allocation is poised to yield improved results. In addition to GE Hitachi Nuclear Energy, the division specializing in nuclear reactors and services, investors also gain exposure to GE’s expertise in gas, hydroelectric, and steam power technologies, along with its leading onshore and offshore wind energy business. Altogether, this gives GE Vernova access to a global market valued at over $265 billion.
A key area of growth for GE Vernova is small modular reactors (SMRs), which are expected to play a vital role in developing a more decentralized and flexible electric grid. The company’s diversified energy portfolio aims to meet both current and future energy demands. The spinoff includes GE’s nuclear operations, previously part of its Power segment, along with its gas, steam, hydroelectric, wind, and electrification businesses, positioning GE Vernova as a leader in the evolving energy landscape.
Stock #2: Brookfield Energy Partners (NYSE: BEP)
Like GE, Brookfield Renewable (BEPC 2.25%) is not a pure-play nuclear energy stock. The company currently owns, operates, and invests in a diverse range of energy assets, including hydroelectric, wind, solar, and energy storage facilities. However, alongside a group of institutional investor partners, it has recently acquired a 10% stake in Westinghouse, one of the world’s leading nuclear services companies.
Brookfield Renewable is purchasing this stake from Brookfield Business Partners (BBU -1.08%)—and yes, the similar names are no coincidence. Brookfield Business Partners had acquired Westinghouse out of bankruptcy several years ago and is now divesting, while Brookfield Renewable, with its long history in renewable energy operations, sees an opportunity to expand its portfolio.
This marks Brookfield Renewable’s first venture into the nuclear sector, though it’s not the company’s first time diversifying its investments. Originally focused on hydroelectric power, it expanded significantly into wind and solar in the mid-2010s and more recently has been investing in energy storage. Now, with nuclear added to its portfolio, Brookfield continues its track record of moving into emerging or previously undervalued technologies when there is a clear path to profitability. The investment in Westinghouse appears to be a continuation of this strategy.
Additionally, Brookfield has a major player on its side: the other 49% of Westinghouse is being acquired by Cameco.
Stock #3: Constellation Energy (NASDAQ: CEG)
Constellation Energy Corporation (CEG) is a leading energy provider that generates and distributes electricity, with a strong emphasis on carbon-free power. As one of the largest producers of clean energy in the U.S., Constellation operates a substantial fleet of nuclear power plants and delivers energy products and services to millions of customers.
Recently, Constellation announced a 20-year power purchase agreement with Microsoft to restart Three Mile Island Unit 1, which will become the Crane Clean Energy Center. This initiative will add 835 megawatts of carbon-free energy to the grid. The company plans to carry out major upgrades to the facility and will pursue regulatory approvals to restart operations, aiming to have it fully operational by 2028, with possible license extensions through 2054. This project aligns with Constellation’s commitment to providing dependable, carbon-free energy and supports Microsoft’s goal of matching its data center energy consumption with clean, sustainable sources.