According to reports, several asset management companies see the potential of nuclear energy-related stocks and consider adding them to their investment portfolios.

For example, Chris Berkouwer, the chief manager of Robeco's Net Zero Climate Stocks 2050 Fund, pointed out, "In the past, we tended to be cautious and exclusionary, but now it is clear that nuclear energy is an indispensable part of reducing greenhouse gas emissions."

However, if nuclear energy assets are added to ESG investment portfolios that focus on environmental protection, it will inevitably provoke debate.

Doubters have raised a series of concerns, including nuclear waste pollution, unstable uranium supply, and global geopolitical shocks, such as the current conflict between Russia and Ukraine at the Zaporizhzhia Nuclear Power Plant.

However, supporters argue that operating nuclear reactors are emission-free, and nuclear power plants can generate a large amount of electricity with a small amount of fuel, making them more efficient than other energy sources. Previously, with strong lobbying from France, nuclear energy was classified as "green energy" by the European Union in 2022.

The potential of nuclear energy

Many fund managers have reignited their interest in nuclear energy because they believe that the growing demand for electricity from artificial intelligence and data centers will be significantly increased in the future, and nuclear energy will play a major role in this.

BlackRock's BlackRock Investment Institute pointed out that nuclear energy will be considered as part of the energy mix required for the construction of big data centers in the technology industry.

Alastair Bishop, Global Head of Sustainable Core Investments at BlackRock Investment Institute, and Portfolio Manager, stated at a media briefing in July, "With the growth of artificial intelligence applications, by 2030, electricity demand may at least double, or even double. This will have a significant impact on the electricity market."

Furthermore, Robert Lancastle, Portfolio Manager at J O Hambro, stated that without nuclear power, the world is unlikely to have enough energy to support the continuous growth of artificial intelligence.

Lancastle said in an interview that finding enough energy to drive the artificial intelligence revolution "is a major unresolved issue. We believe that nuclear power - perhaps small modular reactors near large data centers - will be an interesting field, but it has not received sufficient attention."

Berkouwer from Hambro Group also believes there are potential investment opportunities in uranium miners, equipment suppliers, companies building small modular reactors, and power companies that consider nuclear energy as an important component of their energy infrastructure. He also mentioned that the rise of nuclear power in the future may also drive some software suppliers, as many nuclear power plants require advanced software to operate smoothly.

From the investment performance of the above-mentioned asset managers, Lancastle from J O Hambro has been holding shares of uranium miner Cameco Corp. since the first quarter of 2022, and the stock has risen by about 80% since the beginning of this year. He commented that in the past, ESG investments were too narrow in scope, resulting in stocks like Cameco being "unpopular," but times have changed.

Other companies focused on nuclear energy include Constellation Energy, which has risen over 50% this year; BWX Technologies, which has risen over 20%; and NuScale Power, whose stock price has risen over 150%.

However, the construction cost of nuclear power plants remains an issue and typically takes longer than the construction of renewable energy facilities. In response, Tal Lomnitzer, Senior Investment Manager of Global Sustainable Equity at Janus Henderson Investors, believes that costs can be addressed with small modular reactors. The key is whether nuclear energy can improve its public perception with government and other assurances.