The race to power the world’s rapidly expanding data centers and artificial intelligence infrastructure is becoming the defining story of the energy sector, driving significant market activity across nuclear, solar, and power generation stocks. Nuclear stocks saw gains last week following a DOE award, expected defense bill support, and key comments from Nvidia (NVDA) CEO Jensen Huang on the need for significant new power generation.
Speaking on the Joe Rogan Experience last Wednesday, Huang addressed the bottleneck for the AI industry: Energy. Huang described next-generation data centers not only as server farms, but as “gigawatt factories” — facilities with power demands that the public grid cannot support without risking instability.
As a solution, Huang said he expects to see “a whole bunch of small nuclear reactors” powering data centers directly within six to seven years. This off-grid model is gaining traction as the only viable path for hyperscalers to meet carbon-neutral goals while increasing consumption.
Furthermore, the Department of Energy (DOE) awarded $400 million each to the Tennessee Valley Authority (TVA) and Holtec Government Services on December 2 to accelerate small modular reactor (SMR) deployment. TVA plans to use the GE Vernova Hitachi BWRX-300.
This funding, combined with a nuclear-heavy National Defense Authorization Act (NDAA), has added to momentum for the sector. Advisors tracking nuclear energy have seen significant alpha generation relative to broader energy markets this year.
ETF Market Reaction to Nuclear Tailwinds
The confluence of tech demand and government support has benefited nuclear energy ETFs. The Range Nuclear Renaissance ETF (NUKZ ) is up 62.8% year to date through December 5. GE Vernova (GEV) and Hitachi are top ten holdings of the ETF.
The fund tracks the Range Nuclear Renaissance Index (NUKZX), which looks to provide exposure to a diverse group of nuclear energy stocks. This includes utilities, advanced reactors, construction & services, and fuel ( read more ).
For financial advisors, it’s important to recognize that nuclear is becoming fundamental infrastructure for the AI economy. Without dedicated nuclear power sources, Huang said, the “gigawatt factories” of the future cannot function.
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