The Next Nuclear Boom Is Already Underway: These TSX Stocks Could Lead It

AI is pushing data centre power demand so fast that nuclear energy and Canada’s nuclear supply chain are back in focus.

Key Points
  • Canada’s nuclear boom could reward more than just uranium miners, from engineers to fuel suppliers.
  • Cameco is a top nuclear name, but its high valuation means you may want to buy slowly.
  • AtkinsRéalis looks like the best balanced pick, while NexGen offers riskier, higher-upside potential.

Artificial intelligence (AI) may get all the glamorous headlines, but every data centre eventually runs into the same decidedly unglamorous problem: the power bill. Servers need enormous amounts of dependable electricity, and demand is climbing quickly enough that an energy source once considered yesterday’s technology suddenly looks rather useful again.

The International Energy Agency expects global data centre electricity consumption to roughly double by 2030 to around 945 terawatt-hours (TWh). Meanwhile, more than 70 gigawatts (GW) of nuclear capacity is already under construction globally, one of the highest levels seen in decades.

And of course, Canada is joining in. But a reactor certainly needs uranium. Yet somebody also has to design the reactor, manufacture components, maintain it, refurbish it, and eventually supply fuel for decades. Investors interested in buying stocks in Canada, therefore, don’t need to place the entire wager on uranium.

Nuclear power station cooling tower

Source: Getty Images

CCO

Cameco (TSX: CCO) remains Canada’s nuclear heavyweight. It owns major uranium operations, produces nuclear fuel, and holds 49% of Westinghouse, giving investors exposure to everything from digging uranium out of Saskatchewan to servicing reactors around the world.

Cameco maintained its 2026 attributable uranium-production guidance of 19.5 million to 21.5 million pounds despite temporary disruptions. More importantly, contracts already cover average annual deliveries exceeding 28 million pounds through 2030.

Westinghouse adds another engine. Its technology is used across 57% of the global operating reactor fleet, while its AP1000 pipeline includes as many as 91 potential reactors.

The problem is price. Cameco stock recently traded around 100 times trailing earnings, leaving little room for uranium weakness or disappointing project execution. I’d rather accumulate it gradually, particularly during a stock market correction, than chase every nuclear headline.

ATRL

AtkinsRéalis (TSX: ATRL) may offer the cleaner risk-reward trade. The engineering company owns the exclusive licence to market CANDU reactor technology and earns from reactor design, maintenance, life extensions, and new construction.

Its nuclear business is already enjoying the boom that investors have been waiting for. Second-quarter nuclear revenue jumped 18% to $671.2 million, prompting management to raise its full-year nuclear revenue outlook from approximately $2.5 billion to $2.7 billion.

Nuclear backlog sits at $4.2 billion, while the segment generated an impressive 25.6% adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin on net revenue. Shares have recently traded around 18 times forward earnings, considerably less demanding than Cameco stock.

There’s still risk. Nuclear backlog declined from the prior year, while major projects can be delayed by politics, regulation, and construction schedules. Still, AtkinsRéalis can collect revenue years before a new reactor begins producing power. That’s a useful place to stand when countries start ordering more of them.

NXE

For investors willing to tolerate considerably more excitement, NexGen Energy (TSX: NXE) offers the development-stage option. Its Rook I uranium project in Saskatchewan received its federal construction licence in March, and construction is now underway. At full production, NexGen says the mine could supply more than 20% of current global uranium requirements from one deposit.

That potential comes with a rather large asterisk. NexGen doesn’t yet produce uranium commercially, but plans to raise roughly $1 billion over the coming nine months to help finance Rook I. Financing, construction delays, cost inflation, or future share issuance could all hurt investors.

Its roughly $9.7 billion market capitalization therefore already prices in considerable success. NXE is the one holding I’d keep the smallest, even though successful execution could also create the largest percentage upside.

Bottom line

For most investors, I’d start with AtkinsRéalis. Cameco stock remains the premier long-term nuclear name, though its valuation deserves patience. NexGen offers much more speculative upside as Rook I moves from blueprint to actual mine.

The nuclear revival won’t be finished next quarter. Reactors take years to build and can operate for 60 years or longer. That frustratingly slow timeline is also the opportunity. By the time the world realizes how much uranium, engineering, and reactor capacity it needs, these Canadian companies could already have years of work lined up.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Cameco. The Motley Fool has a disclosure policy.

More on Energy Stocks

Hourglass and stock price chart
Energy Stocks

Enbridge Q3: Profit Nearly Doubles, and I Don’t Think the Dividend Stock is Done Yet

Enbridge starts investors off with a near 5.9% dividend that can continue to grow with a steady growth profile.

Read more »

Woman checking her computer and holding coffee cup
Energy Stocks

Hydro One Stock: A Growing Grid Doesn’t Mean You Should Pay Any Price

Hydro One’s grid investment supports growth, but my preferred entry offers a better starting yield than today’s price.

Read more »

Canadian energy stocks are rising with oil prices
Energy Stocks

Suncor vs. Canadian Natural: Which Dividend Would I Rely On When Oil Falls?

Canadian Natural is my income preference through weaker oil prices, while Suncor offers refining exposure and a newly increased dividend.

Read more »

dividend stocks are a good way to earn passive income
Energy Stocks

Income Investors! Enbridge’s Q3 Results and 5.8% Yield Make a Compelling Case

Enbridge is operating close to capacity as the energy sector benefits from strong demand. The stock is a good buy…

Read more »

Hourglass projecting a dollar sign as shadow
Energy Stocks

Canadian Natural Resources Is Down 10% in 5 Days: Too Late to Buy the Dividend?

Learn how the US mid-term elections affected Canadian Natural Resources and quickly led to a 10% drop in stock value.

Read more »

Business doodle about dividends on chalkboard
Energy Stocks

A Top-Notch 6.5% Dividend Stock to Fuel Your Retirement Income Every Month

Peyto Exploration stock just instituted an 8% increase in its monthly dividend, as cash flows remain strong and its debt…

Read more »

A meter measures energy use.
Energy Stocks

Rates Are Rising Again: Is Emera Still a Sensible Retirement Stock?

Emera still offers retirement income, but borrowing costs and per-share earnings decide how comfortably that payment can grow.

Read more »

how to save money
Energy Stocks

How Much Would You Need to Invest in Enbridge to Average $200 a Month?

Enbridge’s current dividend needs roughly $42,600 in shares to average $200 monthly, with payments arriving every quarter.

Read more »