Nuclear energy stocks have been all the rage in 2024 as investors look to profit from companies powering the AI revolution. However, the market is running out of reasonable places to look in this space. Hyperscaler companies are quickly eating up the excess nuclear energy capacity that U.S. companies have to offer. Firms like Constellation Energy (NASDAQ: CEG) are even recommissioning mothballed sites to meet the demand.
New, full-size nuclear plants cost tens of billions of dollars to build. Additionally, it can take a decade or more before builders complete them and bring them online. Due to this, other solutions are emerging. Small modular reactor (SMR) stocks have been among the hottest in the market. These companies look to build smaller reactors that can come online faster and at a lower cost. However, the economic viability of these reactors is still a massive question. Furthermore, precisely zero SMRs are currently operational in the United States.
