Powering the Future: 5 Utility & Energy Stocks Aligned with AI and Nuclear Tailwinds

The energy sector is at a pivotal moment. With the Trump administration signaling strong support for the energy sector, rolling back regulations to encourage domestic production, and championing U.S. leadership in the AI revolution, the backdrop for electricity demand has possibly never looked more compelling. From powering data centers and cloud infrastructure to fueling economic growth, reliable and scalable energy sources are critical.

Among the most promising areas: nuclear energy. Long viewed as a clean, dependable, and high-capacity solution, it’s now gaining renewed political and investor support. That momentum is reflected in both policy and markets – with the U.S. moving to streamline approvals for next-generation nuclear technology, including Small Modular Reactors (SMRs).

And investors are taking notice. So far this year, Utilities Select Sector SPDR Fund (XLU) is one of the top performing sectors, up close to 12% through the end of July.

Below, we profile several top power and utility stocks – including GE Vernova, Vistra, Constellation Energy, Talen Energy, and NuScale Power – that are not only benefiting from secular tailwinds but also score highly across time-tested fundamental models.

GE Vernova (GEV): The New Face of Grid and Generation

Fresh off its spin-out from GE, Vernova is now a pure-play power infrastructure company, focused on gas turbines, wind, grid modernization, and decarbonization.

Validea Model: GEV earns high marks from the Peter Lynch strategy, largely due to its rapid sales growth (23.4%) and PEG ratio of 0.89, which indicate growth at a reasonable price. View scores.
Secular Catalyst: Vernova’s positioning in grid software, wind energy, and next-gen gas turbines puts it at the epicenter of the energy transition. It’s also a key enabler of the electrification needed to power AI-scale compute. GEV is also actively participating in the nuclear renaissance, especially in the area of modular and next-generation nuclear technologies.

Vistra Corp (VST): A Nuclear-Heavy Utility with a Tech Mindset

Vistra, long a reliable electricity provider, has evolved into a nuclear growth story. With its acquisition of Energy Harbor, it now controls the largest competitive nuclear generation fleet in the U.S.

Validea Model: VST scores well under James O’Shaughnessy’s model, particularly for valuation (P/S of 1.5) and relative strength (94). View scores.
Secular Catalyst: Data center demand is booming, and Vistra is supplying that load with reliable, zero-emission nuclear power. It’s also investing in large-scale battery storage – another strategic edge as intermittent renewables scale.

Constellation Energy (CEG): The Unrivaled Nuclear Pure Play

Constellation is the largest producer of carbon-free energy in the U.S., with more than 21 nuclear reactors across 12 plants. The company is increasingly viewed as the “AI power trade.”

Validea Model: CEG earns praise from the Kenneth Fisher model for its reasonable valuation metrics, including a P/S ratio of 2.6 and low debt-to-equity. The PEG ratio of 1.03 also suggests growth is priced fairly. View scores.
Secular Catalyst: CEG is arguably the most direct play on AI-driven power demand. It has long-term PPAs in place and is lobbying to monetize its carbon-free attributes, offering asymmetric upside if policy trends tilt further toward decarbonization.

Talen Energy (TLN): A Speculative Infrastructure Revival Bet

Talen is a smaller player but one with big ambitions. Its subsidiary Cumulus Data is building nuclear-adjacent data centers – the kind of vertically integrated infrastructure that AI giants crave.

Validea Model: TLN scores well on the Momentum Investor model, with a strong relative strength rating of 97 and EPS growth of 103%. But caution is warranted – the stock trades at 50x earnings, making it a high-risk, high-reward name. View scores.
Secular Catalyst: If Talen can successfully convert its nuclear adjacency into consistent data center revenues, the stock could re-rate dramatically. However, execution risk remains high.

NuScale Power (SMR): Betting on Small Modular Reactors

NuScale is pioneering SMRs–compact nuclear reactors that promise cheaper, faster, and safer deployment than traditional plants. Think of it as the Tesla of nuclear.

Validea Model: While SMR doesn’t score strongly across traditional value or growth models (likely due to its early-stage profile and negative cash flow), it could appeal to venture-style investors looking for exposure to a next-gen nuclear technology. View scores.
Secular Catalyst: The U.S. Department of Energy and private investors continue to fund the SMR push. With global interest in nuclear rising, SMR may benefit from strategic partnerships and regulatory tailwinds.

Company	Market Cap ($mil)	PE Ratio	P/S Ratio	ROE (%)	Dividend Yield	12-Month Return (%)	LT Sales Growth (%)
GE Vernova (GEV)	$175,473	92.9	4.9	22.0	0.08	214.2	6.0
Vistra (VST)	$65,220	30.3	3.6	80.8	0.46	164.7	10.3
Constellation Energy (CEG)	$102,597	34.5	4.2	24.7	0.44	84.9	6.1
Talen Energy (TLN)	$15,775	37.0	7.9	29.3	0.00	164.0	9.2
NuScale Power (SMR)	$14,695	N/A	299.6	-32.3	0.00	271.0	154.8

As always, stock selection is just one part of the investing process. But if you’re bullish on the future of power – and want data-driven insights to back your conviction – these names offer a compelling place to start.