- Nuclear power demand is rising, benefitting industrial and utilities stocks. Despite criticisms, stocks stand to gain from the expanding nuclear power sector due to increased electricity prices and consumption, especially in the US driven by data centers and AI.
- Rolls-Royce may become a nuclear champion with government backing to build small modular reactors. The company secured a deal with the Czech Republic, positioning itself as a key player in the nascent sector, potentially becoming Europe’s supplier of nuclear technology.
- Centrica, the UK energy supplier, could see growth in nuclear power with a potential stake in the Sizewell C nuclear project. The company already has a stake in Électricité de France, and a new investment could double its exposure to the nuclear sector.
- Spain’s Iberdrola and Endesa are key players in nuclear power, with the government aiming to switch completely to renewable energy by 2035. Both companies produce a significant amount of nuclear energy, making them essential to Spain’s energy mix.
- Demand for uranium is increasing as nuclear power grows, with concerns about Western countries facing shortages. Canadian uranium miner Cameco is a preferred choice due to its exposure to the raw material, benefiting from higher uranium prices and production expansion.
- Yellow Cake, a holding company for uranium, offers investors exposure to the uranium market. By purchasing a portion of Cameco’s output and storing it in warehouses, Yellow Cake provides a pure bet on the price of uranium, benefiting from the global surge in demand for nuclear energy.
Read more at Morningstar: 6 Stocks Poised to Benefit From the New Nuclear Age