2 Nuclear Stocks to Buy and What Each One Needs to Go Right

2 Nuclear Stocks to Buy and What Each One Needs to Go Right

Courtney Carlsen, The Motley Fool

Wed, August 19, 2026 at 6:05 PM GMT+3 4 min read

Energy has taken center stage amid the artificial intelligence (AI) data center boom. Nuclear energy is experiencing a massive resurgence worldwide, and the U.S. wants to quadruple its nuclear capacity by 2050.

With the U.S. focused on domestic energy production, this initiative presents a long-term opportunity for investors in U.S.-based Centrus Energy (NYSE: LEU) and Uranium Energy (NYSEMKT: UEC). Here's why these two companies could be top nuclear stocks to buy -- and what must go right for them in the coming years for them to be quality investments.

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Centrus is key to the U.S. securing domestically manufactured nuclear fuel

Next-generation nuclear reactors need fuel, and Centrus Energy is positioning itself as a leading domestic provider of that fuel. The company is the only publicly traded U.S. company authorized to procure enriched uranium for national defense and military purposes. It is also the only licensed U.S. facility to produce high-assay, low-enriched uranium (HALEU), the specialized nuclear fuel used by nearly all next-generation small modular reactors.

It has become a vital asset for the U.S. In 2024, Congress signed the Prohibiting Russian Uranium Imports Act. This act bans imports of unirradiated, low-enriched uranium (LEU) produced in the Russian Federation or by a Russian entity through the end of 2040. Companies have received waivers to purchase Russian-sourced LEU if no viable sources are available, but those expire Jan. 1, 2028.

The opportunity is there for Centrus, but for the stock to deliver for investors, it must transition from a nuclear fuel supplier to a nuclear fuel manufacturer. To do so, the company must expand its American Centrifuge Plant in Piketon, Ohio. This multibillion-dollar project is backed by federal funding, including a $900 million task order from the Department of Energy.

The company produces HALEU in small amounts and looks to produce commercial quantities for next-generation nuclear companies. It has signed a deal with Oklo, which builds Aurora powerhouses based on microreactor technology, and will begin delivering HALEU in 2029. It will also produce LEU, used in older nuclear reactors, with new capacity coming online in 2029.

Demand for domestically sourced uranium is a tailwind for Uranium Energy

While Centrus looks to produce nuclear fuel for reactors, Uranium Energy covers everything from mining to processing, refining, and conversion. The company's advantage is that it controls the largest uranium resource in the U.S. and uses a hub-and-spoke platform in which processing plants serve as central hubs that process material extracted from multiple nearby mining sites (the spokes).

Uranium Energy uses in situ recovery (ISR), a low-impact mining method that uses oxygenated groundwater to dissolve uranium underground and pump it to the surface. The company has a licensed production capacity of 12 million pounds of yellowcake, the concentrated uranium powder extracted from natural ore and the starting point for nuclear reactor fuel.

Looking ahead, Uranium Energy needs momentum in nuclear energy and sustained policy enforcement that restricts Russian uranium, which could push uranium prices higher as the U.S. prioritizes domestic feedstock.

What makes Uranium Energy appealing for nuclear-focused investors is that it is 100% unhedged. As a result, the company benefits from maximum price exposure when uranium prices rise, enabling it to capitalize on the current growth in demand.

Should you buy stock in Centrus Energy right now?

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Courtney Carlsen has positions in Centrus Energy. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

2 Nuclear Stocks to Buy and What Each One Needs to Go Right was originally published by The Motley Fool