Is BWX Technologies (BWXT) the Top Pick for Nuclear Energy Investing Among Billionaires?

We recently released a compilation of the 10 Top Nuclear Energy Stocks That Millionaires Are Buying According To Data In this piece, we will examine how BWX Technologies, Inc. (NYSE:BWXT) measures up against some of the top companies in the nuclear sector.

Currently, nuclear power generates slightly below 10% of the worldwide electrical output, making it the second largest producer of low-carbon electricity globally. It is anticipated that this figure will increase considerably since the International Energy Agency reports that more than 70 gigawatts of additional nuclear capability are being built across the globe; moreover, over 40 nations intend to enhance nuclear energy’s contribution within their respective energy frameworks. In the U.S., although accounting for less than 8% of overall operational capacity, nuclear energy supplied approximately 19% of national electric needs in 2024.

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Nuclear power has become a leading contender for fueling the expanding AI industry along with its associated data centers. As per recent projections from Deloitte, the electrical needs of these data centers might increase five times over by 2035, totaling around 176 gigawatts. It is anticipated that roughly ten percent of this requirement will be fulfilled through nuclear sources. In fact, just last month during the CERAWeek event held in Houston, numerous major technology companies gathered unofficially and committed themselves to boosting global nuclear energy production threefold by mid-century.

Still, the challenge lies in the fact that numerous such projects require several years to become operational; some might even take a decade or longer. Additionally, they come with price tags reaching into the billions of dollars and frequently encounter issues concerning construction schedules and budget overruns, potentially undermining their financial feasibility and competitive edge. One potential answer comes in the shape of Small Modular Reactors (SMRs), each capable of generating up to 300 megawatts of power. These units not only promise faster deployment but also offer significant opportunities for reducing costs. Furthermore, they can be prefabricated using standardized components and are designed to be adaptable enough to serve individual clients, such as data centers or industrial complexes. According to the International Energy Agency (IEA), under favorable conditions, SMR deployments could total 80 gigawatts by 2040, representing about 10 percent of global nuclear energy production.

Even with an unprecedented rise in demand for nuclear energy, many stocks within this sector have experienced considerable drops during the past year because the cost of uranium has dropped by approximately 37% since January 2024. This downturn partly results from escalating disagreements between the U.S. and Canada—a major source of uranium supply for the former. Additionally, expectations about potentially removing economic restrictions on Russia also contribute to the lower uranium prices; notably, Russia supplied most of the enriched uranium used commercially in the U.S. both in 2022 and 2023.

Nevertheless, the nation prohibited the importing of Russian uranium in the previous year to encourage local manufacturing. Additionally, the Department of Energy received $2.7 billion in funding aimed at fostering the expansion of America’s nuclear fuel supply network. Consequently, this led to a significant rise; specifically, uranium production within five U.S.-based facilities located in Wyoming and Texas surged by 24 percent during 2024. Furthermore, following President Trump's directive for an investigation into possible tariffs on essential mineral imports such as uranium, financial backers are increasingly investing in shares of domestic uranium enterprises.

A bird’s-eye look at a nuclear facility, with its distinctive dome-shaped structures throwing an unusual shade below.

Our Methodology

To gather data for this article, we examined Insider Monkey’s database of billionaires and selected the top 10 firms within the nuclear power industry that attracted the most hedge fund investors during Q4 of 2024. In cases where multiple companies had an equal number of billionaire backers, they were ordered according to their market capitalization at the time of writing. Below are these listed entities: Top Nuclear Energy Stocks as Identified by Billionaires .

At Insider Monkey, we have an intense focus on the stocks that hedge funds heavily invest in. This interest stems from our findings which indicate that mimicking the top choices made by leading hedge funds allows us to surpass market performance. Each quarter, our quarterly newsletter recommends 14 small-cap and large-cap stocks, achieving returns of 275% since May 2014, thereby exceeding its benchmark by 150 percentage points. see more details here ) .

BWX Technologies, Inc. (NYSE: BWXT )

Number of Billionaire Owners: 12

BWX Technologies, Inc. (NYSE:BWXT), a key provider of nuclear materials and fuels to the U.S. government, specializes in producing nuclear reactor parts for both submarines and aircraft carriers used by the U.S. Navy. Additionally, they engage in various nuclear as well as non-nuclear research and development along with component fabrication.

In the fourth quarter of 2024, BWX Technologies, Inc. (NYSE:BWXT) exceeded market projections significantly when its adjusted earnings per share came in at $0.92, surpassing predictions by $0.1. Additionally, the firm reported revenues totaling $746.27 million, which was not only above forecasts but also marked an increase of about 2.86% compared to the same period last year. By the end of fiscal year 2024, BWXT boasted a substantial order backlog valued at $4.8 billion—a rise of 21% year-over-year—thanks largely to significant new contracts secured across all business divisions. Furthermore, the company saw positive financial performance in terms of liquidity; specifically, operating cash flow increased roughly 12%, reaching $408.4 million for the full year. Free cash flow similarly experienced robust growth, climbing nearly 20% to hit $255 million.

BWX Technologies, Inc. (NYSE:BWXT), which trades on the New York Stock Exchange, is broadening its reach and revealed earlier this year that they have reached an agreement to purchase Kinectrics, a company offering engineering, inspection, and advisory solutions. This $525 million buyout will enhance BWXT’s range of skills such as life cycle administration, specific facility support, and technical design, alongside almost doubling their employee count.

Overall, BWXT ranks 7th On our roster of top nuclear energy stocks favored by billionaire investors, we recognize the growth prospects of BWXT. However, we're inclined toward believing that AI stocks present stronger opportunities for substantial financial gains over a quicker period. Notably, one particular AI stock has surged since early 2025 even as many prominent AI shares have declined roughly 25% during the same timeframe. Should you seek an AI equity with better upside potential compared to BWXT yet trading below five times its earnings value, consider reviewing our detailed analysis available in our latest report. cheapest AI stock .

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Disclosure: None. This piece was initially published at Insider Monkey .