Is PEG the Top Pick for Nuclear Energy Investment Among Billionaires?

We recently released a compilation of the 10 Top Nuclear Energy Stocks That Millionaires Are Buying According To Reports In this piece, we will examine how Public Service Enterprise Group Incorporated (NYSE:PEG) measures up against other top nuclear energy companies.

Currently, nuclear power accounts for nearly 10% of the worldwide electrical output, making it the second largest producer of low-emission electricity globally. The share from nuclear sources is anticipated to increase substantially since the International Energy Agency reports that more than 70 gigawatts of additional nuclear generating capacity are currently being built across different nations. Furthermore, over 40 countries are considering increasing the role of nuclear power within their respective energy frameworks. In the U.S., even though nuclear facilities make up less than 8% of the nation’s operational electric generation capabilities, they produced approximately 19% of all domestic electricity generated in 2024.

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Nuclear power has become prominent in fueling the current surge in artificial intelligence along with its associated data centers. As per recent projections from Deloitte, the electrical needs of these data centers might increase five times by 2035, totaling around 176 gigawatts. It is anticipated that roughly one-tenth of this requirement will be fulfilled through nuclear sources. Last month, various major technology corporations convened during the CERAWeek event held in Houston and committed themselves to boosting global nuclear energy output threefold by mid-century.

Nevertheless, the challenge lies in the fact that numerous such initiatives require several years for development, with certain ones potentially taking upwards of ten years before completion. These ventures frequently involve expenditures amounting to billions of dollars and commonly encounter issues pertaining to delays in schedule and budget overruns, factors that may impede their financial feasibility and competitive edge. An answer to this predicament comes in the shape of Small Modular Reactors (SMRs), each capable of generating up to 300 megawatts of power. These units promise faster deployment along with enhanced opportunities for reducing costs. Additionally, they can be manufactured using standardized components within factories and are considered versatile enough to cater specifically to individual clients—such as data centers or industrial complexes. According to the International Energy Agency (IEA), under favorable conditions, SMR deployments might achieve a total output of 80 gigawatts by 2040, representing approximately one-tenth of global nuclear energy production capacities.

Even with an unprecedented rise in demand for nuclear energy, many stocks within this industry have experienced considerable drops during the past year because of falling uranium prices. The cost of uranium has dropped approximately 37% since January 2024. This downturn can partly be attributed to escalating tensions between the U.S. and Canada—the primary source of uranium supply for America. Additionally, expectations about the possible removal of sanctions against Russia contribute significantly; Russia had been the leading provider of enriched uranium to the American commercial market in both 2022 and 2023.

Nevertheless, the nation prohibited the entry of Russian uranium during the previous year to encourage local production. Additionally, the Department of Energy received $2.7 billion in funding aimed at boosting the development of America’s nuclear fuel supply network. Consequently, this has led to a surge; specifically, five U.S. sites located in Wyoming and Texas have witnessed a 24 percent rise in homegrown uranium output over 2024. Furthermore, following President Trump’s directive for an investigation into possible duties on essential mineral imports like uranium, financial backers are increasingly purchasing shares in American-based uranium firms.

A striking cityscape aglow with the brilliance from the electrical power provider.

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 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 leading stock choices made by successful hedge funds allows us to exceed market performance. Each quarter, our quarterly newsletter employs a strategy that selects 14 small-cap and large-cap stocks, achieving returns of 275% since May 2014, surpassing its benchmark by 150 percentage points. see more details here ) .

Public Service Enterprise Group Inc. (NYSE: PEG )

Number of Billionaire Owners: 10

Public Service Enterprise Group Incorporated (NYSE:PEG), primarily an electricity and natural gas provider under regulation, also delves into nuclear power via its subsidiary, PSEG Power. This division encompasses owning and operating various nuclear plants intended for commercial use.

Public Service Enterprise Group Incorporated (NYSE:PEG) reported fourth-quarter revenues for 2024 totaling $2.47 billion, which represents a decline of 5.47% compared to the same period last year and fell short of forecasts by $73.6 million. Nonetheless, the firm managed to beat analyst predictions with an adjusted earnings per share (EPS) figure of $0.84, surpassing expectations by one cent. For fiscal year 2024 overall, PEG achieved an adjusted EPS of $3.68, thus achieving its target for the twenty-first successive year as they maintained their record of meeting or exceeding financial targets set out for investor relations.

Public Service Enterprise Group Incorporated (NYSE: PEG) is likewise listed amongst the 10 of the Safest Dividend Stocks You Can Purchase Today The firm has distributed dividends to its shareholders consistently over 118 years and most recently declared a quarterly dividend of $0.63 per share. It currently maintains an annual dividend yield of 3.11%.

Public Service Enterprise Group Incorporated (NYSE: PEG) remains committed to investing in nuclear power and reached an accord with Lotus Resources earlier this year. As part of this deal, the utility firm has ensured the acquisition of a minimum of 2.3 million pounds of uranium sourced from the Kayelekera Uranium Project located in Malawi. This supply will be available between 2026 and through the conclusion of 2032.

Overall, PEG ranks 8th On our roster of top nuclear energy stocks favored by billionaires, we recognize the growth prospects of PEG. However, we lean towards the idea that investments in artificial intelligence (AI) have stronger potential for achieving significant financial gains over a shorter period. Notably, one particular AI stock has surged since early 2025 even as many prominent AI equities dropped approximately 25%. Should you seek an underpriced AI option with better upside compared to PEG—trading below five times its earnings—we recommend 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 .