2 Nuclear Energy Stocks to Buy in 2026

According to analysts from Bank of America, we are now entering a nuclear renaissance. "Nuclear energy has, in many ways, been recently 'rediscovered' amid surging electricity demand," a recent report from the bank says. What's causing this surge in electricity demand? One catalyst: artificial intelligence (AI).

In many ways, betting on the two nuclear stocks below is a clever way of exposing your portfolio to the upside from the world's rapidly growing appetite for AI.

1. NuScale Power

Since the year began, shares of NuScale Power (NYSE: SMR) have lost roughly one-third of their value. The company's market cap is now down to just $3.7 billion. The total potential value of the nuclear renaissance, however, is estimated to be somewhere around $10 trillion. Bank of America believes the technology could hold "the answer to the world's power shortages."

Clearly, there could be huge upside to investing in NuScale Power at these prices. But it's important to understand the details. The company's ticker symbol is SMR. This is no mistake: SMR is an acronym for small modular reactors, a specific approach to nuclear technology that has yet to take off at scale.

This approach is, as the name suggests, smaller than conventional plants with the option for modularity. That is, these types of nuclear plants can theoretically be scaled up over time. They can also be converted into bespoke plants of any size without needing to reinvent the foundational model for each customer.

The company's SMR strategy is very different from the competing nuclear company discussed next. At its core, NuScale will design and manufacture its SMR modules. A separately financed partner, ENTRA1, will be responsible for developing and operating each specific project. It's a novel approach, and ENTRA1 has already signed an agreement with the Tennessee Valley Authority for a 6-gigawatt project.

Here's the issue: NuScale Power has scrapped or delayed customer agreements in the past. And we don't yet have clear cost or timeline estimates on the aforementioned deal. It will likely be years until its first reactor is put into service. The company below, however, is much closer to the finish line.

Image source: Getty Images

2. Oklo

If you're going to bet on SMR stocks, look for companies most exposed to the AI sector. After all, it is the global data center building boom that is fueling electricity demand's growth potential. "This potential has more momentum than before," said Timothy Fox, managing director at ClearView Energy Partners. "There are data centers looking for firm and dispatchable and clean generation, and nuclear power can cover that."

With a market capitalization of $9 billion, Oklo (NYSE: OKLO) is valued several times higher than NuScale Power, but the premium is worth it. The company already has an extensive deal pipeline with several major big tech and data center customers.

Its first reactor is expected to be deployed by 2027, and Bank of America currently has a buy rating on the stock with a $127 price target. Execution risks still abound, but Oklo is your best pure-play SMR pick when it comes to establishing real-world sales traction.

Bank of America is an advertising partner of Motley Fool Money. Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool recommends NuScale Power. The Motley Fool has a disclosure policy.