2 nuclear stocks lead AI power boom as data center demand surges

Constellation Energy (NASDAQ: CEG) and Cameco Corporation (NYSE: CCJ) are capturing the AI-driven nuclear power boom from opposite ends of the supply chain, as hyperscalers sign multidecade power agreements and Western nations phase out Russian uranium. Dozens of countries have committed to tripling global nuclear capacity by 2050, while the U.S. Department of Energy projects data centers will account for up to 12 percent of American electrical demand by 2028.

"Projected spending levels for 2026 are nearly 75 percent higher than last year and continue to be revised upward," Constellation's CEO told investors on the Q2 earnings call, citing hyperscaler customer demand.

Constellation operates the largest U.S. nuclear fleet, producing more than 180 terawatt hours annually. Q2 revenue reached $7.5 billion, up 22.9 percent year over year, with adjusted EPS of $2.55, up 33.5 percent. The company signed 920 megawatts of new long-term nuclear PPAs with investment-grade customers, including a 20-year agreement with Microsoft to restart the Crane Clean Energy Center (Three Mile Island Unit 1) and a PPA with Walmart. The Nuclear Regulatory Commission approved the fuel license for Crane, and FERC approved a waiver to transfer capacity interconnection rights from Constellation's Eddystone gas plant to the facility.

Cameco holds 433 million pounds of proven and probable uranium reserves, including the world's highest-grade deposits in Saskatchewan's Athabasca Basin. Its uranium segment posted $712 million in Q2 revenue, up 15 percent year over year, with adjusted EBITDA of $423 million, up 48 percent. Management raised 2026 guidance, projecting realized uranium prices of $91 to $96 per pound, up from $85 to $89, and total revenue of $3.32 billion to $3.75 billion.

Constellation's scarcity premium

Unlike solar or wind, nuclear provides nonstop carbon-free baseload power — exactly what hyperscalers such as Microsoft, Meta Platforms, Amazon, and Alphabet need for AI data centers with strict zero-emissions targets. Constellation's fleet delivered 44,160 GWh at a 93 percent capacity factor in Q2, and the company raised FY2026 adjusted EPS guidance to $11.50 to $12.50. Under the Inflation Reduction Act, the Nuclear Production Tax Credit creates a statutory revenue floor for nuclear output, protecting margins if wholesale power prices fall while leaving upside uncapped when premium data center PPAs rally.

The scarcity premium extends beyond Constellation. Vistra, which pairs baseload nuclear with gas generation, secured up to $1 billion in initial commitments through its Helix Digital Infrastructure joint venture with Nvidia, KKR, and the Kuwait Investment Authority. NextEra Energy is pursuing a Duane Arnold nuclear restart targeting Q1 2029, with roughly 21 gigawatts of large-load interest at its Florida utility. These competing plays reflect the structural demand for always-on nuclear capacity, but Constellation's 20-year Microsoft PPA and 920 megawatts of newly signed agreements give it the most transparent long-term revenue visibility in the group.

Cameco's integrated nuclear franchise

Cameco has transformed from a commodity miner into a fully integrated nuclear services company through its 49 percent joint venture ownership of Westinghouse Electric Company, alongside Brookfield Renewable Partners. Westinghouse technology is used in roughly 57 percent of operating nuclear reactors worldwide, providing recurring, high-margin revenue from maintenance, refueling, software, and replacement parts. The company has 28 million pounds of uranium sales contracted through 2030, and its high-grade Athabasca deposits insulate profit margins during cyclical pullbacks.

The U.S. ban on Russian uranium imports strengthens Cameco's position as a Western-aligned supplier with Tier-1 sovereign risk profiles. The company's 2026 guidance calls for uranium revenue of $2.7 billion to $2.91 billion, up from $2.54 billion to $2.73 billion, and fuel services revenue of $610 million to $630 million. Q2 overall EPS fell 75 percent year over year to $0.18, though much of that reflects the timing of customer requirements that increase in winter months.

Constellation trades at roughly 23 times forward earnings with a market cap near $100 billion, while Cameco carries a $43 billion market cap. Wall Street is broadly aligned on Constellation, with 20 buy or strong buy ratings and an average price target of $349.96. The key risk for Constellation is the Q2 refueling schedule, which ran 86 outage days versus 41 a year earlier, and the end of Illinois' ZEC program in May 2027.

This article is for informational purposes only and does not constitute investment advice.