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| Two massive cooling towers are being rehabilitated for nuclear power generation under Microsoft at Crane Clean Energy Center, previously known as Three Mile Island. The Washington Post/The Washington Post via Getty Images |
Nuclear energy stocks are powering ahead in 2025, leaving the broader energy sector in the dust.
Shares of companies in the nuclear space surged again this week following a high-profile announcement from U.S. Transportation Secretary and interim NASA administrator Sean Duffy. His remarks about fast-tracking the development of a nuclear reactor on the moon sent names like Oklo, Nucor, and Nano Nuclear Energy soaring and the momentum carried into Wednesday’s trading.
But the enthusiasm for nuclear stocks goes far beyond a single headline. In fact, nuclear power has become the breakout story in the energy market this year, emerging as the hottest trade in the sector.
Interest in nuclear energy has been steadily building, with endorsements from figures like Tesla CEO Elon Musk and, more recently, support from the Trump White House. And now, it’s clear: 2025 has become nuclear’s breakout moment.
A glance at the numbers confirms it. The VanEck Uranium and Nuclear ETF (NLR) is up nearly 50% year-to-date. That dwarfs the Utilities Select Sector SPDR ETF (XLU), which has climbed just 13%, and the Energy Select Sector SPDR ETF (XLE), which is actually down about 1% this year.
Nuclear Stocks Are Outperforming the Energy Sector in 2025
Across the energy landscape, nuclear stocks are in a league of their own. While traditional energy sectors like oil, gas, and utilities are delivering mixed or modest returns, nuclear-focused equities have significantly outpaced their peers.
Investors are taking note, and for good reason. Beyond speculative momentum, nuclear is receiving strong tailwinds from both technological shifts and federal policy. It's not just an energy story it's an AI story, too.
Nuclear Power Is Fueling the AI Boom
The meteoric rise of nuclear stocks in 2025 is deeply intertwined with the AI explosion.
As artificial intelligence continues to dominate corporate investment strategies, data centers are being built at an unprecedented rate. These facilities consume massive amounts of electricity and the industry is scrambling for clean, reliable, scalable power.
Goldman Sachs projects that data center electricity demand will grow by 165% by 2030, a figure that underscores the urgency for new energy solutions.
That’s where nuclear fits in.
“It was easy and fast to reactivate nuclear reactors to meet the growing demand for clean energy from data centers,” said Alexander Lis, chief investment officer at Social Discovery Ventures. “Other energy sources were either less clean, like coal, or slower to build, like wind or solar.”
Lis added that the demand isn’t just a short-term spike. “Many big tech companies have already committed to using nuclear energy to power their data centers.”
One of the most notable examples came last fall, when Constellation Energy announced it would restart operations at the Three Mile Island site, with Microsoft set to purchase its power output.
Eric Schiffer, chairman and CEO of The Patriarch Organization, agrees. As both a nuclear investor and an AI advocate, he emphasized the strategic importance of nuclear energy in America’s bid for AI dominance.
“Right now, China is far ahead in terms of energy infrastructure,” Schiffer said. “Nuclear is essential to help the U.S. keep pace. We can’t afford to fall behind because of an energy shortfall.”
Nuclear Energy Has Become an Unlikely Trump Trade
While much of the attention around nuclear has focused on its clean energy potential, there's also a political dimension at play.
Analysts say the Trump administration’s policy platform has turned nuclear into a clear beneficiary of its energy strategy. Unlike the Biden-era push toward wind and solar, the current administration is taking a more aggressive, deregulation-focused approach to nuclear development.
Jeff Le, managing principal at consulting firm 100 Mile Strategies, pointed to a bold White House goal: quadrupling U.S. nuclear capacity to 500 gigawatts by 2050.
According to Le, the administration has placed nuclear “at the top of its Energy Dominance agenda,” backed by executive orders that prioritize reactor licensing, fuel reprocessing, and domestic uranium production.
This shift away from traditional renewables and toward a tech-and-nuclear-focused approach is creating strong momentum in the markets. The combination of exploding AI demand and government backing has turned nuclear into 2025’s most surprising and resilient energy trade.
And for investors, there could be more upside to come.
Schiffer believes that nuclear stocks are just getting started. “This momentum isn’t short-term noise,” he said. “We see another 12 to 18 months of strong performance ahead.”
