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In this piece, we’ll check in on a few nuclear energy names that might be worth a second look now that the AI-driven hype has cooled off a bit. Undoubtedly, even a steep correction (think 40-50%) might not be enough of a discount should an AI bubble finally end up popping, dragging down many of the stocks that touch AI, from small nuclear reactor (SMR) plays to equipment providers to the semi plays and the frontier model makers themselves. Indeed, if there’s tremendous strength, driven by the AI revolution narrative, one has to imagine that there could be proportional weakness should the AI trade turn on itself.
Either way, I do think that energy remains one of the bottlenecks as AI data centers go live. Of course, AI spending could retreat a bit, but those data centers are likely to stay online and operating at full capacity (or close to it), and they’re going to need a power source. All considered, I view the energy side of the AI trade to be a rather intriguing place to look for growth.
Though, the risks could vary depending on the name you’re looking at and the price of admission we’re talking about. In this piece, we’ll check out two nuclear energy plays that are coming in. Whether or not they’re buys yet remains the big question. Either way, they’re worth watching on the way down as the AI trade experiences increased turbulence to kick off 2026.
Oklo
First up, we have the hottest nuclear energy play of them all in Oklo (NASDAQ:OKLO). In case it’s been a while since you last checked the stock out, the name has since suffered a near 50% haircut from its peak. Of course, valuation has been a concern, and it remains a concern, even after the pummelling. The stock could lose another 50% of its value and still be considered pricey, especially since it’s not yet profitable.
Actually, it’s a step behind that in that the firm is pre-revenue, but likely not for long.
Of course, the big reason to get behind the stock is the technology and its potential to drive revenue and profits in the future. The technology is profoundly promising, and with deals, including the latest with Meta Platforms (NASDAQ:META), being inked, one could argue that the latest drop is a nice entry point for speculative hyper-growth seekers. Microreactors seem like the perfect solution to the energy constraints holding back AI. But there’s execution risk to be had here as well as a lack of financials to go by to value the firm appropriately.
Either way, I wouldn’t bet against the Sam Altman-owned stock on the way down. Though it is worth noting that Altman is no longer in the chair over at Oklo. Personally, I’d be cautious with the name, given the negative momentum.
Constellation Energy
Constellation Energy (NYSE:CEG) seems more investable for investors who can’t handle extreme swings in Oklo shares. The stock is down just shy of 30% from its high, which makes for a rather enticing entry point for those looking for a cheaper way to play the AI energy demand side of things. With a massive fleet of nuclear assets and the reopening of Three Mile Island, Constellation Energy seems like a more obvious nuclear play to pick up.
What’s even more impressive, though, is the firm’s expertise in nuclear energy, which should pay dividends as the firm tackles ambitious projects to feed more data centers. The firm has the hyperscaler clients in place; now, it needs to upgrade its fleet.
With the proven ability to execute, I think the stock is one of the better nuclear power bets, especially while shares are going for just 25.5 times forward price-to-earnings (P/E). That’s not a hefty price to pay for a $104 billion juggernaut that stands out as a go-to nuclear energy play in this AI revolution. Sure, Constellation isn’t as exciting as Oklo, but it’s a steadier ship that might just sail higher in the coming years.