Wall Street took profits on the entire artificial intelligence trade, including nuclear energy stocks, over the past several weeks. The selloff was overdue, and a healthy recalibration was necessary following the massive post-Trump election rally that capped off a stellar multi-year run for AI and nuclear energy.

The rapid downturn erased months’ worth of gains in a flash, setting up great buying opportunities for investors with long-term horizons.

Why Nuclear Energy Stocks Will Continue to Climb

Microsoft and others have reaffirmed their commitments on AI-focused capital expenditure (capex) spending, despite initial concerns tied to DeepSeek. Meanwhile, Nvidia’s recent earnings report and outlook highlighted exceptional AI growth.

Large data centers can consume nearly as much electricity as a midsize city, and generative AI platforms like ChatGPT use at least 10 times the energy of a typical Google search. This AI-driven energy boom is arriving just as the U.S. and major tech companies aim to reduce their reliance on fossil fuels.

The U.S. government has launched various initiatives to support the nuclear energy revival, aiming to triple nuclear capacity by 2050. Beyond the U.S., key economies like China, India, and many others are fully committing to nuclear power.

Nuclear energy and AI remain two of the most critical Wall Street megatrends. The selloff has left three great nuclear stocks trading 30% or more below their highs.

Why This Nuclear Stock Is a Great Long-Term Buy-and-Hold Investment

Constellation Energy CEG is the largest U.S. nuclear power plant operator, managing over 20 reactors across roughly a dozen sites in the Midwest, Mid-Atlantic, and Northeast. This alone makes CEG one of the most straightforward long-term nuclear energy investments.

In mid-January, Constellation announced its $26.6 billion cash-and-stock deal to acquire natural gas and geothermal titan Calpine. The deal will create the nation’s largest clean energy firm, while also expanding CEG’s geographical footprint into power-hungry, tech-heavy Texas and California.

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CEG strengthened its nuclear energy bull case by securing a 20-year power purchase agreement with Microsoft in September. Constellation raised its dividend by 25% in 2024 and expects to increase its dividend per share by another 10% in 2025.

The company forecasted “visible, double-digit long-term base EPS growth backed by the Nuclear Production Tax Credit,” with estimates projecting +8% EPS growth in 2025 and +15% in 2026.

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Constellation has soared 330% over the past three years. CEG has cooled off recently, even though it still doubled the S&P 500's return over the past 12 months.

CEG’s 35% drop from its January peak pushed it below its 200-day moving average and to its most oversold RSI levels since its last rebound.

CEG is attempting to find support at the low end of its recent range (near its previous May 2024 highs). Constellation’s overall upward earnings revisions earn it a Zacks Rank #2 (Buy).

Time to Buy Soaring GEV Stock on the Dip?

GE Vernova GEV is a pure-play energy transition stock. The GE spinoff boasts that its customers generate roughly 25% of the world’s electricity through GE Vernova’s installed base of technologies, spanning nuclear energy, natural gas, wind, and beyond.

GEV’s steam power unit provides nuclear turbine technologies and services for all reactor types. The company is also at the cutting edge of next-generation small modular nuclear reactor (SMR) technologies.

The U.S. Department of Energy selected GE Vernova to help develop a key part of the next-gen nuclear and uranium industry.

GEV also critically provides investors with long-term exposure to natural gas, which will continue to play a massive role in the U.S. and globally. Beyond nuclear and natural gas, GE Vernova’s growth pipeline includes electrification software, power conversion, energy storage, grid solutions, and more.

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GE Vernova is projected to grow its adjusted earnings by 21% in 2025 and 67% in 2026, driven by 5.5% and 9% sales growth, respectively.

GE Vernova boosted its bull case when it declared its first dividend in December, payable in the first quarter of 2025. GEV also approved an initial $6 billion share repurchase plan. Of the 28 brokerage recommendations tracked by Zacks, 20 are “Strong Buys,” with zero “Sells.”

GEV has jumped 125% since its April 2024 IPO. However, GE Vernova became overheated, and the DeepSeek news helped spark a quick selloff.

GEV’s 30% drop since late January has erased nearly all of its post-Trump election gains, and the stock is now trying to hold its ground at this level.

Buy Nvidia-Topping VST Stock at Its 200-Day?

Vistra VST is the largest competitive power generator in the U.S. VST’s growing portfolio spans nuclear, solar, battery storage, natural gas, and more. The Texas-based firm owns the second-largest competitive nuclear fleet and boasts the second-largest energy storage capacity in the country.

Vistra serves around 5 million residential, commercial, and industrial retail customers across 20 states, including every major competitive wholesale market.

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VST’s Energy Harbor deal bolstered its nuclear division and transformed Vistra into one of the leading integrated zero-carbon generation and retail electricity companies.

Vistra is committed to buybacks and dividend expansion. Its growth outlook is stellar for a company of its size, with revenue projected to soar 24% in 2025 and 17% in 2026, reaching $25 billion.

Wall Street loves VST stock, with all 12 brokerage recommendations tracked by Zacks rated as “Strong Buys.”

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VST has surged 450% over the past three years. Vistra’s massive run included a market-crushing 2024 that saw it outpace Nvidia NVDA and nearly every other large-cap AI and nuclear stock.

VST has tumbled around 35% from its January highs and trades 50% below its average Zacks price target. Vistra is finding some support at its 200-day moving average.

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Constellation Energy Corporation (CEG) : Free Stock Analysis Report

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