The Case for Best Nuclear Stocks: Why Constellation Energy Stands Out in a Booming Sector

The nuclear energy sector delivered exceptional returns throughout 2025, marking a turning point for an industry long overlooked by mainstream investors. Companies like Oklo achieved triple-digit gains, while uranium enrichers and miners captured significant upside. The broader VanEck Uranium and Nuclear ETF (NYSEMKT: NLR) gained more than 50% over the 12-month period, reflecting renewed institutional interest in clean, reliable baseload power. Yet within this competitive landscape, one company has distinguished itself through a fundamentally different business model: Constellation Energy (NASDAQ: CEG), which operates the largest nuclear fleet in the United States and stands as the country’s largest electricity producer.

Operating Assets vs. Growth Potential: The Nuclear Advantage

The nuclear sector currently splits into two camps: emerging developers with exciting but unproven technologies, and established operators with decades of experience and existing revenue streams. This distinction matters considerably when evaluating best nuclear stocks for a multi-decade holding period.

Startups like Oklo and NuScale are designing innovative small modular reactors that could reshape energy generation. They offer explosive growth potential for early investors. However, they face a critical reality: these companies won’t generate meaningful revenue for years, and regulatory hurdles remain substantial. Constellation Energy, by contrast, has already built the infrastructure and secured the long-term customer relationships that others are still pursuing.

Operating nuclear facilities isn’t merely an operational detail—it represents a competitive moat that cannot be quickly replicated. Constellation currently manages the largest nuclear fleet in the U.S. and has locked in contracts extending through the next decade. In June 2025, the company announced a landmark 20-year agreement with Meta Platforms to supply power from its Clinton Clean Energy Center beginning in 2027. Separately, Constellation partnered with Microsoft to restart the Three Mile Island Unit 1 facility, now rebranded as the Crane Clean Energy Center. These aren’t speculative partnerships; they’re binding, long-term revenue commitments from two of the world’s most valuable companies.

Strategic Partnerships Driving Long-Term Growth

The infrastructure demands created by artificial intelligence data centers have fundamentally altered the electricity market. Unlike cyclical industrial demand, AI computing facilities operate around the clock and require reliable, carbon-free baseload power. This structural shift directly benefits companies already possessing operational nuclear capacity.

Constellation’s recent acquisition of Calpine transformed the company into the nation’s largest electricity producer, amplifying its market position and giving it unparalleled leverage to negotiate additional supply contracts. The company’s executive leadership, including CEO Joe Dominguez, has signaled openness to developing next-generation reactors at existing nuclear sites—combining Constellation’s operational expertise with emerging small reactor technology.

This dual approach addresses both near-term cash generation and long-term competitive positioning, differentiating Constellation from pure-play technology companies or legacy utilities without modern nuclear capabilities.

From Restart to Expansion: Building Nuclear Leadership

Historical precedent suggests that established industry leaders often deliver superior returns over extended holding periods, particularly in sectors experiencing structural growth. Constellation’s strategic moves in the past 12 months—securing Meta’s power commitment, partnering with Microsoft on facility restarts, and integrating Calpine’s capacity—represent a company deliberately positioning itself at the center of an expanding market.

The investment case doesn’t rest on speculative next-generation technology or betting that emerging companies will eventually overcome regulatory obstacles. Instead, Constellation offers tangible, contracted cash flows backed by existing infrastructure—a foundation upon which future growth initiatives can be built. For investors seeking the best nuclear stocks with operational certainty alongside expansion prospects, this combination is increasingly rare.

Evaluating Your Investment Decision

When selecting individual stocks, particularly in sectors experiencing rapid change, the distinction between near-term volatility and long-term structural strength becomes critical. Constellation Energy may not deliver the headline-grabbing percentage gains sometimes associated with early-stage nuclear developers. However, it offers something arguably more valuable: proven operations, secured long-term contracts, and a clear pathway to capturing expanding demand from AI infrastructure development.

The utility sector’s historical role as a dividend-generating, low-volatility investment is evolving. Constellation represents a hybrid model: stable, contracted revenue streams paired with exposure to one of the decade’s most powerful growth drivers. For investors building long-term portfolios in the nuclear energy space, this profile merits serious consideration.