Is NexGen Energy Ltd. (NXE) the Top Pick for Nuclear Energy Investment Among Billionaires?

We recently released a list of the 10 Top Nuclear Energy Stocks That Millionaires Are Buying According To Data In this piece, we will examine how NexGen Energy Ltd. (NYSE:NXE) measures up against some of the top players in the nuclear stock sector.

Currently, nuclear power generates slightly below 10% of the worldwide electrical output, making it the second largest producer of low-emission electricity globally. The share from nuclear energy is anticipated to increase substantially since more than 70 gigawatts of additional nuclear capability are being built across the planet, with over 40 nations intending to enhance the contribution of nuclear power within their respective energy frameworks. In the U.S., although accounting for less than 8% of operational capacity, nuclear energy supplied approximately 19% of the nation’s electricity 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 requirements of these data centers might increase up to five times by 2035, totaling around 176 gigawatts. It is anticipated that roughly one-tenth of this requirement will be fulfilled through nuclear sources. In fact, just last month during the side events of the CERAWeek conference held in Houston, numerous major technology corporations came together and committed themselves to boosting global nuclear energy production threefold by mid-century.

However, the challenge lies in the fact that numerous such projects require several years to complete, with some potentially taking a decade or longer. These initiatives come at enormous costs—measured in billions—and frequently encounter issues regarding schedule delays and budget overruns, factors that may limit their financial feasibility and competitive edge. One potential answer comes through Small Modular Reactors (SMRs), designed with capacities reaching up to 300 megawatts each. These units promise faster construction times along with better opportunities for reducing expenses. Additionally, they can be assembled using standardized components off-site and claim versatility sufficient for installation tailored toward individual clients, say, a data center or manufacturing facility. According to projections by the International Energy Agency (IEA), under supportive conditions, SMR deployments might achieve around 80 gigawatts by 2040, representing approximately one-tenth of global nuclear energy output.

Even with an unprecedented rise in demand for nuclear energy, many stocks within the industry have experienced considerable drops during the past year because of falling uranium prices, which dropped about 37% starting from January 2024. This downturn partly results from escalating tensions between the U.S. and Canada—the leading source of uranium imports for America. Additionally, expectations regarding possible removal of sanctions against Russia—a top provider of enriched uranium to the American commercial market in both 2022 and 2023—have also contributed to weakening uranium costs.

Nevertheless, the nation prohibited the importation of Russian uranium during the previous year to encourage local manufacturing capabilities. Additionally, the Department of Energy received $2.7 billion in funding aimed at fostering the expansion of America’s nuclear fuel industry infrastructure. Consequently, this led to a significant surge; specifically, five facilities located in Wyoming and Texas reported a 24% uptick in indigenous uranium output for the entirety of 2024. Furthermore, following President Trump’s directive mandating an investigation into potential tariff implementations on essential minerals like uranium, financial stakeholders are increasingly investing capital to secure shares within American-based uranium enterprises.

A miner wearing a hard hat and an apron holds a chunk of uranium ore in the Athabasca Basin, Saskatchewan.

Our Methodology

To gather data for this article, we examined Insider Monkey’s database of billionaires and selected the top 10 firms in 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 based on 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 leading stock choices made by successful hedge funds allows us to exceed market performance. Each quarter, our quarterly newsletter recommends 14 small-cap and large-cap stocks through this strategy, achieving returns of 275% since May 2014, thereby surpassing its benchmark by 150 percentage points. see more details here ) .

NexGen Energy Ltd. (NYSE: NXE )

Number of Billionaire Owners: 8

NexGen Energy Ltd. (NYSE:NXE), a Canadian firm dedicated to exploring and developing uranium deposits, primarily operates within the Athabasca Basin area of Saskatchewan. This company aims to transform the Rook I Project into the biggest and most cost-effective uranium mine globally.

NexGen Energy Ltd. (NYSE:NXE), through its Rook 1 project, stands ready for construction but awaits governmental clearance. This venture is distinguished as having high profit margins, an extended operational lifespan, and reduced technical risks. It’s situated within a prime area known for superior mining conditions. In December 2024, NexGen announced initial contracts with U.S.-based power utilities to deliver five million pounds of uranium over time. According to these arrangements, the firm anticipates delivering roughly one million pounds annually between 2029 and 2033, pending the start of commercial operations.

Last month, NexGen Energy Ltd. (NYSE:NXE) reported that they had drilled their most successful well so far, encountering high-grade uranium and extending the boundaries of their shallow inner high-grade zone within the Patterson Corridor East (PCE) located in Saskatchewan.

At the end of the fourth quarter in 2024, shares of NexGen Energy Ltd. (NYSE:NXE) were owned by 37 hedge funds. Waratah Capital Advisors owning the biggest share valued at nearly $39 million.

Overall, NXE ranks 10th On our roster of top nuclear energy stocks favored by billionaires, we recognize the growth prospects of NXE. However, we're convinced that investments in artificial intelligence stocks offer better opportunities for substantial gains over a shorter period. An AI stock has surged since early 2025, even as many well-known AI shares have declined by approximately 25%. Should you be seeking an AI equity with stronger potential compared to NXE yet trading below five times its earnings, review our detailed analysis available in our latest report. cheapest AI stock .

READ NEXT: 20 Top AI Stocks You Should Consider Buying Today and 30 Top Stocks to Purchase Currently as Recommended by Millionaires .

Disclosure: There are none to declare. This article was initially published here. Insider Monkey .

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