NuScale Power (SMR) and Cameco (CCJ) are climbing 12% and 4%, respectively, today. NuScale is developing small modular nuclear plants, while Cameco (CCJ) mines and sells uranium that's used to create nuclear energy.

The stocks are climbing after the International Energy Agency (IEA) issued a largely bullish report on nuclear power yesterday.

An aerial view of a nuclear plant, its domes casting a unique shadow.

The IEA's Take on Nuclear Power

Predicting that the amount of electricity produced this year globally using nuclear power would reach an all-time high, the IEA wrote that the energy source is making a "strong comeback." According to the organization, over 70 gigawatts of nuclear power is now being built worldwide. That could be positive for the long-term outlook of Cameco (CCJ).

In a statement that's quite pertinent for NuScale Power (SMR), the organization believes that small module reactors "in particular offer exciting growth potential." Additionally, IEA wrote that the increasing demand for electricity and greater interest in nuclear power can "start a new era for the secure and clean power source."

On a negative note, the IEA did warn that "governments and industry" would face challenges when it comes to expanding nuclear energy capacity. Among the areas in which they will face roadblocks are "delivering projects on time and on budget...financing, and supply chains," the organization believes.

While we acknowledge the potential of NuScale Power (SMR), our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SMR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.