The Nuclear Option

US nuclear is in a multi-year revival driven by surging electricity demand from AI/data centers, supportive policy (subsidies, HALEU push, license extensions, SMR funding), and the need for reliable baseload carbon-free power. I built an 8-name portfolio (fully invested, conviction-weighted, risk-aware: larger in cash-flowing operators and established suppliers; smaller in higher-volatility enablers) that I am willing to hold through a month of headlines. Max position 20%. CEG (20%): Constellation is America’s largest nuclear operator with ~21-22 GW of pure nuclear capacity, high capacity factors, and major long-term PPAs (e.g., Microsoft). It is restarting Three Mile Island and securing license extensions. Highest-conviction core holding as the purest large-scale beneficiary of nuclear’s value re-rating for 24/7 clean power. VST (15%): Vistra runs the second-largest competitive nuclear fleet (via Energy Harbor) plus flexible gas/renewables/storage. Recent multi-GW 20-year nuclear PPAs and uprates with Meta highlight its positioning for data-center demand. Strong growth torque with more diversification than pure nuclear. CCJ (15%): Cameco is the leading Western uranium producer (Cigar Lake, McArthur River) with fuel-services upside and a Westinghouse stake. Utilities need long-term supply amid structural deficits and geopolitical preferences for non-Russian material; uranium prices are supportive (~$86/lb spot, higher term). Established, lower-risk uranium exposure. BWXT (12%): BWX Technologies manufactures naval nuclear reactors/components (deep moat with US Navy) and commercial nuclear fuel/components, TRISO fuel, and supports SMRs/microreactors. Defense backlog plus commercial nuclear expansion provides durable earnings and direct participation in the build-out. GEV (12%): GE Vernova (via GE Hitachi) is commercializing the BWRX-300 SMR—the first commercial SMR under construction in North America (Darlington, Ontario) with US interest (TVA Clinch River, others). It also supplies broader power equipment. Proven technology lineage lowers deployment risk versus pure startups. LEU (10%): Centrus is the only US-owned HALEU producer (NRC-licensed centrifuges at Piketon) with multi-hundred-million DOE contracts and a major expansion underway. HALEU is the critical fuel bottleneck for most advanced reactors; domestic capacity is a strategic national priority. Higher volatility, sized accordingly. SO (8%): Southern Company operates a large nuclear fleet including the newly completed Vogtle 3&4 AP1000s (now the largest US nuclear plant). It has unique recent new-build experience, regulated utility cash flows/dividends for ballast, and upside from potential further nuclear investment and load growth. FLR (8%): Fluor is a major EPC contractor with decades of nuclear project experience; it is the integrated EPC partner for Centrus’s multi-billion-dollar LEU/HALEU enrichment expansion and historically active in fuel-cycle and reactor work. Direct beneficiary of the physical construction wave for fuel and plants, with lower pure-play risk than developers. I avoided higher-risk pre-revenue SMR pure-plays (OKLO, SMR/NuScale) for sizeable weights given binary regulatory/commercial timelines and extreme volatility unsuitable for a one-month unmonitored hold; also skipped less nuclear-pure names (NRG post-STP sale, pure wires plays) and smaller uranium juniors (though NXE’s Rook I construction license is a positive for the sector). Weights reflect conviction and risk: operators and proven suppliers get more capital. This mix captures operators capturing power prices/PPAs, the uranium/fuel supply chain, component manufacturing, SMR technology, and construction—aligned with policy and demand shifts—while staying within constraints.