Nuclear power is in the spotlight, but these two stocks have tumbled over the past year. Here's which sold-off stock is a better buy right now.
Nuclear power is in the spotlight, but these two stocks have tumbled over the past year.
Here's which sold-off stock is a better buy right now.
After the 2011 Fukushima nuclear disaster, the industry stalled for years as plants closed and new projects stalled. Now, surging electricity demand from AI data centers, robotics, and advanced manufacturing is changing the equation. Add ambitious carbon-reduction targets, and reliable, emissions-free nuclear energy looks increasingly appealing.
Centrus Energy (LEU -0.88%) and BWX Technologies (BWXT +0.65%) occupy critical positions in the U.S. nuclear supply chain. Both stocks soared with the nuclear revival narrative last year but have since declined 54% and 22%, respectively, in 2026. With shares down significantly, which nuclear supply chain stock is the better buy right now?
Nuclear energy will be crucial in helping address growing energy needs
Energy demand is projected to grow faster. According to the Bank of America Institute, U.S. electricity demand is projected to grow 5 times faster over the next decade than it did over the last. Power-hungry data centers drive this growth, as they require significantly more power and cooling. Electrifying the power grid (think electric vehicles) and reshoring industrial operations also contribute to rising electricity demand.
Other factors are also at play. For example, the U.S. Department of Energy is taking steps to accelerate the construction of new nuclear power plants and to develop next-generation reactors and fuels. Small modular reactors (SMRs) could change the game for nuclear energy, and many require specialized fuel that the U.S. doesn't yet manufacture at scale.
Centrus Energy supplies nuclear fuel for traditional and next-gen nuclear plants
This is where Centrus Energy has an opportunity. Centrus has operated as a nuclear fuel supplier for power plants, sourcing low-enriched uranium (LEU) through long-term supply agreements from international enrichers. However, the company is pivoting to become a domestic producer of enriched uranium as the U.S. looks to onshore production of these critical fuels.
With the Prohibiting Russian Uranium Imports Act set to take full effect in 2028, the U.S. is scrambling to secure enriched uranium. Centrus is currently the only U.S. company licensed by the Nuclear Regulatory Commission with ready-to-deploy gas centrifuge technology to enrich uranium to LEU and to high-assay, low-enriched uranium (HALEU) for advanced microreactors.
Averytin News Financial update.