We recently published a list of 12 Best Nuclear Power Stocks to Buy Now. In this article, we are going to take a look at where NexGen Energy Ltd. (NYSE:NXE) stands against other best nuclear power stocks to buy now.
The United States of America is the largest producer of nuclear power in the world, accounting for almost 30% share of the global generation of nuclear electricity. The sector has witnessed an accelerated investor interest over the last year, largely driven by a continued focus on the goal to achieve net-zero carbon emissions and the widespread recognition of nuclear’s importance in the global ‘clean energy transition’. The International Energy Agency recently revealed that nuclear is set to generate a record level of electricity in 2025. There are more than 70 gigawatts of new nuclear capacity under construction around the world, one of the highest levels in the last 30 years, and more than 40 countries have plans to expand nuclear power’s role in their energy systems.
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One of the largest modern growth drivers of nuclear energy is SMRs, or small modular reactors, that have a power capacity of up to 300 MW(e) per unit and are quicker to build with greater scope for cost reductions. The IEA estimates that with the right support, SMR installations could reach 80 GW by 2040, accounting for 10% of the overall nuclear capacity globally. Several major US corporations are now actively working to develop the technology in the country, offering a potentially more flexible and cost-effective approach to nuclear power generation.
Another major accelerator for the industry is the ongoing AI boom and the accompanying data centers, which could consume as much as 9% of all energy generated in the US by 2030. This energy needs to come from a relatively cheap, clean, and reliable source where nuclear has massive potential. Several American tech giants are already investing billions of dollars in nuclear power and SMRs as an emissions-free source of electricity for their AI and other businesses. On the sidelines of the CERAWeek conference in Houston earlier this month, several major companies have even signed a pledge to support the goal of at least tripling the world’s nuclear energy capacity by 2050.
That said, a large number of nuclear energy stocks have lost momentum over the last year, primarily due to a steep fall in the prices of uranium. From highs of more than $105 per pound at the start of 2025, uranium prices have plunged to just over $63 currently. The decline of over 26% is influenced by factors such as the winding up of the Kazakh-based ANU, Trump tariff uncertainties, and geopolitical tensions with Russia, which account for around 44% of the global uranium enrichment capacity.
The United States imports the lion’s share of its uranium from Canada and President Trump’s 10% tariffs on energy imports from the northern neighbor could significantly hamper the growth of the nuclear sector. A Canadian uranium miner and producer stated last month that prices for US customers could jump by 10% if Trump’s tariff threats were to be implemented, raising costs for a sector that is looking to explode over the coming decade.
With that said, here are the Best Nuclear Energy Stocks to Invest in.
A miner in a hard hat and apron holding a piece of uranium ore in the Athabasca Basin, Saskatchewan.
Our Methodology
To collect data for this article, we scanned Insider Monkey’s database of over 1,000 hedge funds and picked the top 12 companies operating in the nuclear power sector with the highest number of hedge fund investors in Q4 of 2024. When two or more companies had the same number of hedge funds investing in them, we ranked them by the revenue of their last financial year. Following are the Best Nuclear Energy Stocks to Buy According to Hedge Funds.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
NexGen Energy Ltd. (NYSE:NXE)
Number of Hedge Fund Holders: 37
NexGen Energy Ltd. (NYSE:NXE) is a Canadian uranium explorer and developer operating particularly in the Athabasca Basin region of Saskatchewan. The company is focused on optimally developing the Rook I Project into the largest, low-cost uranium mine in the world and is awaiting its final permit from the Canadian government to start construction later this year.
NexGen Energy Ltd. (NYSE:NXE) is currently engaged in advanced engineering and exploration drilling to support future mining operations and anticipates annual delivery of about 1 million pounds of uranium from 2029 to 2033, subject to the commencement of commercial production. The company announced in December 2024 that it had signed its first agreements with US utility companies to supply 5 million pounds of the nuclear fuel ingredient. NXE further revealed last month that it is nearing more deals with other utilities in the country, indicating that the ongoing trade tensions between the two neighboring countries have not hampered its progress.
Shares of NexGen Energy Ltd. (NYSE:NXE) have fallen by over 36% over the last year, as investors remain concerned about rising costs. The company’s Arrow Deposit (part of the Rook I project) has seen a 70% jump in pre-production cost, from CAD$1.3 billion to CAD$2.2 billion, causing its IRR to fall from a sensational 71.5% to a much lower 39.6%.
Overall, NXE ranks 10th on our list of the best nuclear power stocks to buy now. While we acknowledge the potential for NXE, our conviction lies in the belief that some 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 NXE 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.