NVIDIA (NASDAQ: NVDA) did not mention nuclear specifically in its Q4 report or 2025 guidance, but the news is no less critical to nuclear stocks like NuScale Power (NYSE: SMR), Oklo Inc. (NYSE: OKLO), and Cameco (NYSE: CCJ).
The significant details pertain to the wickedly hot demand for GPUs, escalating power consumption with each new generation, and a forecast for compute needs to grow by 100x for the next generation AI models. They point to continued, sustained, and accelerating power demand from the data centers that house the GPUs, which are being constructed at an unprecedented rate. Nuclear is a clear choice, sustainable and with a low carbon footprint.
Meanwhile, Amazon (NASDAQ: AMZN), Meta Platforms (NASDAQ: META), and Alphabet (NASDAQ: GOOG) have signed a pledge joining more than 20 governments supporting the expansion of nuclear power. They want to at least triple the global nuclear power capacity by 2050, a bold ambition given the time for new projects to come online and the current meager pipeline.
The latest tallies have 60 atomic projects under construction globally, mainly in Asia, a mere 13% increase from the 440 in operation. The pledge is non-binding, but support from Amazon, Meta, and Google is significant as they represent more than 50% of the global data center capacity and are central to the AI infrastructure build-out underway.
Small Modular Reactors Are an Important Building Block for Nuclear Capacity
Small modular reactors are exactly what they sound like: smaller nuclear reactors that can be linked together, scaling from site-specific power needs to larger, grid-supporting activity. NuScale Power Corporation is the leader in this regard, manufacturing the only traditional, water-cooled SMRs approved for use in the U.S.
Its plans include the first reactors coming online within the next 3-5 years, and it has 12 modules in production. The latest earnings report highlighted growing interest from hyperscalers, governments, and industries.
The only bad news is that it will be several years before the company generates significant revenue or profits. The analysts forecast revenue to grow in 2026 but not topping the $1 billion mark until 2030 or later, and profitability will be as elusive. Profits are not predicted until 2030, which may be an optimistic estimate.
Analysts rate the stock as a Moderate Buy, and there is a bullish bias to the data, with most rating at Buy or better and the consensus rising. However, the latest revision is a significant price target reduction, and the consensus is well below the current price action, presenting a headwind for the market.
Oklo’s Fast Reactors Provide Advantages for Power Generators
Oklo is another SMR manufacturer, except it is focused on liquid-metal-cooled fast reactors. Fast reactors can run at lower temperatures and reuse spent fuel from other reactors, which is significant given the state of nuclear fuel.
Uranium is abundant on Earth but primarily found in isolated regions outside the U.S. However, it has been estimated that existing stockpiles of spent fuel in the U.S. can power Oklo’s reactors for many decades.
Another critical factor is Oklo’s use of HALEU, or high assay low-enriched uranium, a higher purity than standard nuclear fuel essential to unlocking the full potential of atomic power generation. Oklo’s reactors have also been approved, and the initial project is on track to commence operation within the next few years.
Cameco Fuels the World’s Nuclear Reactors
Cameco is the leading supplier of uranium fuel and reactor components globally. It primarily serves the traditional water-cooled-reactor industry but also advanced reactors and, as they come online, SMRs.
Its revenue growth is erratic due to the timing of quarterly shipments but is tracking higher over time. More importantly, the company makes profits today and pays a dividend. Highlights for investors to be aware of is the recent investment in Westinghouse.
Westinghouse is a leading provider of nuclear reactors and equipment globally. Cameco owns 49% of the company in partnership with Brookfield Renewable Partners, providing an avenue for growth.
