Energy has taken center stage amid the artificial intelligence (AI) data center boom. Nuclear energy is experiencing a massive resurgence worldwide, and the U.S. wants to quadruple its nuclear capacity by 2050. With the U.S. focused on domestic energy production, this initiative presents a long-term opportunity for investors in U.S.-based Centrus Energy (NYSE: LEU) and Uranium Energy (NYSEMKT: UEC).
Here's why these two companies could be top nuclear stocks to buy -- and what must go right for them in the coming years for them to be quality investments. This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia.
For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » Next-generation nuclear reactors need fuel, and Centrus Energy is positioning itself as a leading domestic provider of that fuel. The company is the only publicly traded U.S. company authorized to procure enriched uranium for national defense and military purposes.
It is also the only licensed U.S. facility to produce high-assay, low-enriched uranium (HALEU), the specialized nuclear fuel used by nearly all next-generation small modular reactors. It has become a vital asset for the U.S. In 2024, Congress signed the Prohibiting Russian Uranium Imports Act.
This act bans imports of unirradiated, low-enriched uranium (LEU) produced in the Russian Federation or by a Russian entity through the end of 2040. Companies have received waivers to purchase Russian-sourced LEU if no viable sources are available, but those expire Jan. 1, 2028. The opportunity is there for Centrus, but for the stock to deliver for investors, it must transition from a nuclear fuel supplier to a nuclear fuel manufacturer.
To do so, the company must expand its American Centrifuge Plant in Piketon, Ohio. This multibillion-dollar project is backed by federal funding, including a $900 million task order from the Department of Energy. The company produces HALEU in small amounts and looks to produce commercial quantities for next-generation nuclear companies.
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