Nuclear Stocks’ $566 Billion Rally Is Far From Over, Funds Say

“The global AI race will ultimately be won by those with the energy supply available to match their technological ambitions,” said Tan Altundag, an emerging equities investment manager at Pictet Asset Management in Hong Kong. “This explains the growing urgency among both Big Tech and sovereign states toward nuclear energy, treating energy infrastructure as an existential priority.”

In the US alone, data centers will require $350 billion in investment in additional nuclear capacity over the next 25 years, according to Bloomberg Intelligence. US President Donald Trump has signed orders to accelerate plant construction, and Nvidia Corp.’s Jensen Huang says nuclear is the future of AI power.

The trend is global, with Japan approving reactor restarts, while Taiwan is looking to do the same in the next few years. European nations including Italy and Denmark are moving toward reintroducing nuclear power, while the UK now allows it to qualify for “green” financing.

‘AI Proxy’

While some stocks have seen huge jumps already, money managers at firms from BNP Paribas to Korea Investment Management see room for further gains. The related investment universe covers everything from uranium miners to makers of turbines and other equipment as well as utilities.

Korea Investment Management portfolio manager Jeong Yu Tae says nuclear energy “has become the most essential AI proxy” given it can provide power for data centers 24 hours per day and is carbon free. Yet he cautions investors to be more selective in 2026 given big runups that have stretched valuations.

One of the hottest areas has been small modular reactors, such as those being built by Oklo. Jeong notes SMR stocks are likely to be volatile given that actual use is still years away, and he is instead focusing on firms that can provide power with existing reactors such as Constellation Energy Corp. and Vistra Corp.

Equipment makers are a key play for Park Jinho, head of equity at NH-Amundi Asset Management in Seoul. His $583 million fund has gained 104% this year, driven largely by Doosan Enerbility. That stock is now trading at more than 100 times estimated earnings, but Park says this isn’t excessive given its long-term growth potential.

BNP Paribas Asset Management’s Fabien Benchetrit has taken some profits on outperformers but expects further advances given energy needs beyond AI, including for industrial processes and electric vehicles.

‘Gold Rush’

“Investing in nuclear power in 2025 might seem, to some extent, like betting on shovels and picks during the gold rush,” said Benchetrit, head of target allocation for France and Southern Europe. “Our strategy is to strengthen our positions on nuclear power in the coming months, as well as with other players belonging to the same theme of electrification.”

Others like Hanwha Asset Management’s Wang Seungmook are seeking better returns upstream in uranium mining. He is betting on US plans to reduce reliance on Russia for nuclear fuel, in order to avoid problems such as those that have developed with China over rare earths.

Wang’s picks include Canada-based miner Cameco Corp., as well as US-based uranium-enrichment firm Centrus Energy Corp. and nuclear fuel supplier BWX Technologies Inc.

Pictet’s Altundag notes that Kazakhstan’s Kazatomprom, the world’s largest uranium miner, is “trading at undemanding levels relative to the rest of the nuclear space.” Its London-listed shares are up 63% this year but are still at less than 11 times estimated earnings for the next 12 months.

“Looking at physical uranium markets, we see an underappreciated opportunity with a far more favorable, more fundamental-driven risk-reward set-up compared to emerging nuclear technology stocks that have captured headlines this year together with the current AI euphoria,” he said.

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Read more articles by Youkyung Lee, Julien Ponthus, Sangmi Cha