We recently published a list of 10 Best Nuclear Energy Stocks To Invest In Now. In this article, we are going to take a look at where Duke Energy Corporation (NYSE:DUK) stands against other best nuclear energy stocks to invest in now.

According to the September updated edition of the report, “Pathways to Commercial Liftoff Advanced Nuclear” by the US Department of Energy (DOE), the U.S. nuclear power sector is set to triple in capacity from approximately 100 GW in 2024 to around 300 GW by 2050, driven by increased electricity demand and the need for reliable, carbon-free power. Recent demand surges from artificial intelligence and data centers are encouraging significant investment in nuclear power.

Nuclear also plays a vital role in the energy transition, the United States power systems require an additional 700–900 GW of clean firm capacity to achieve net-zero emissions. The current nuclear fleet, comprising 94 reactors across 54 sites, provides about 20% of the nation’s electricity and nearly half of its carbon-free power.

To support nuclear expansion, the U.S. government has bolstered the sector with tax credits, loans, and research funding. The Inflation Reduction Act’s (IRA) production and investment tax credits for new reactors and existing plants are expected to play a pivotal role.

In 2024, Congress provided a $2.72 billion allocation for developing a domestic nuclear fuel supply chain and passed the ADVANCE Act to improve licensing process efficiency. Congress also allocated $900 million specifically for Gen III+ Small modular reactors (SMRs).

Small modular reactors (SMRs) are an alternative to traditional nuclear plants and offer a promising new opportunity for nuclear energy. SMRs are a type of nuclear reactor with a power capacity of up to 300 MW(e) per unit. They are manufactured off-site and shipped to the location for installation, making them more cost-effective and suitable for a wider range of areas.

How Big Tech is Revitalizing the Industry?

In an interview with Yahoo Finance on October 1, Aniket Shah, Global Head of Sustainability and Transition Strategy at Jefferies, discussed the resurgence of nuclear power in the United States, particularly in Michigan and Pennsylvania, where plants are set to reopen to support the growing demand for electricity driven by the AI boom. Shah emphasized that this development is not surprising, given the long-known need for increased power demand and the role of nuclear energy in the energy transition.

Shah highlighted that the International Energy Agency’s long-term forecast has consistently shown the need to double or triple global nuclear capacity to achieve net-zero emissions. He also pointed out that the US signed an agreement at the Conference of the Parties (COP) nine months ago to triple nuclear capacity over the next couple of decades. Shah attributed the recent momentum in nuclear energy to the growing demand from the tech industry, which is willing to pay a premium for firm and clean power to meet their climate commitments.

Shah noted that Big Tech companies will play a significant role in driving the nuclear renaissance, not only by investing in nuclear power but also in small modular reactors and potentially nuclear fusion. He also emphasized the bipartisan support for nuclear energy in the US, citing the passage of the ADVANCE Act to streamline nuclear approvals and the willingness of politicians from both parties to support nuclear energy. However, Shah acknowledged that the industry faces significant challenges, including a lack of skills and capacity to deliver on the required scale, and that the process of building a new industry will take time.

The tech industry’s demand for energy is driving a surprising trend as big tech companies are increasingly turning to nuclear power to fuel their operations. As demand for clean electricity grows, tech companies are recognizing its potential to provide a reliable, low-carbon source of power for their data centers and AI operations. With that in context, let’s take a look at the 10 best nuclear energy stocks to invest in now.

Our Methodology

To compile our list of the 10 best nuclear energy stocks to invest in now, we scanned nuclear energy ETFs plus online rankings to compile an initial list of 25 nuclear energy stocks. From that list,  we narrowed our choices to the 10 stocks that analysts see the most upside to. The list is sorted in ascending order of analysts’ average upside potential, as of November 12.

Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

Duke Energy Corporation (NYSE:DUK)  

Upside Potential: 10.04%  

Duke Energy Corporation (NYSE:DUK) is one of the largest energy holding companies in the United States, delivering electricity to approximately 8.4 million customers across North Carolina, South Carolina, Indiana, Ohio, Florida, and Kentucky. The company collectively manages around 54,800 megawatts of energy capacity.

Duke Energy Corporation (NYSE:DUK) operates 11 nuclear units located at six sites in North and South Carolina. These plants have a combined capacity of about 10,700 megawatts and supply nearly half of the electricity consumed in the Carolinas. In addition to its electric utilities, Duke Energy Corporation (NYSE:DUK) also provides natural gas services to 1.7 million customers in North Carolina, South Carolina, Tennessee, Ohio, and Kentucky.

On November 7, Duke Energy Corporation (NYSE:DUK) announced its earnings for the Q3 ending September 30, 2024. The company reported total operating revenues of $8.15 billion, reflecting a 2% increase compared to $7.99 billion in the same period last year.

The Regulated Electric unit, which is the company’s primary revenue generator, saw operating revenues of $7.78 billion, a 1.8% year-over-year growth in Q3. This unit contributed 95.4% of the total revenue for the quarter. In terms of electric energy sources, Duke Energy Corporation (NYSE:DUK) generated a total of 72,732 gigawatt-hours (GWh) during the period, with nuclear energy accounting for 19,150 GWh of this total.

Duke Energy Corporation (NYSE:DUK) also plans to pursue an Early Site Permit (ESP) for advanced nuclear facilities, a step that would help them identify and secure potential locations for these reactors well in advance. By obtaining an ESP, the company can streamline future licensing processes for new nuclear plants.

Overall, DUK ranks 10th on our list of best nuclear energy stocks to invest in now. While we acknowledge the potential of DUK to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DUK but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.