How to Play the Nuclear Boom

On October 31, 2025, the U.S. government agreed to arrange financing of $80 billion for Westinghouse Electric's new nuclear reactors. This is a huge deal for Westinghouse' owners, giant uranium miner Cameco (NYSE: CCJ) and Brookfield Renewable Partners (NYSE: BEP).

The deal's announcement sent Cameco's shares soaring, as you can see here:

Under the agreement with Westinghouse Electric, the U.S. government will arrange financing and help secure permits for new Westinghouse reactors. In return, the U.S. government will take 20% of future profits. That comes after Westinghouse recoups profits of $17.5 billion.

The U.S. government could turn that profit into an equity stake of up to 20%. The agreement also requires an initial public offering of Westinghouse by 2029 if its value surpasses $30 billion.

Japan agreed to provide up to $332 billion in additional support for new reactors in the U.S. That agreement includes construction of Westinghouse AP1000 reactors and small modular reactors. According to Reuters, Japanese firms Mitsubishi Heavy Industries, Toshiba and IHI could build up to $100 billion of Westinghouse reactors.

The simple fact is, if you believe in AI then you are also an electric power bull. If you want AI to work without blowing up the cost of consumer electric bills, we must have more power generation. All electric power generation is welcome. But nuclear power offers more generation for less fuel.

A single 10-gram gummy bear sized pellet of uranium contains as much energy as:

That's what makes it so attractive today. But this agreement goes far further than supporting the growth of new nuclear power plants in the U.S. It also streamlines permitting.

That's huge.

Permitting is the single biggest hurdle to new nuclear power in the U.S. Historically, it took eight to twelve years to permit a new nuclear power plant in the United States. The Vogtle Units 3 and 4 in Georgia were the last new nuclear power plants approved in the United States. The owners, led by Georgia Power, received permits from the NRC in February 2012.

Vogtle Unit 3 entered commercial operation in July 2023, marking the first new US reactor brought online in more than 30 years. Unit 4 went into commercial operation in April 2024.

By that timeline, any new nuclear power plants proposed today wouldn't come online before 2050. That's 12 years for permitting and 12 years for construction...that's not great for investors.

But the agreement with the U.S. promises to streamline the permitting process for Westinghouse reactors. That reduces the timeline and therefore the risk. This is excellent for investors because it reduces the uncertainty of permitting and reduces the timeline of construction.

And while Cameco benefits from this agreement, Brookfield Renewable Partners (NYSE: BEP) is the bigger winner. That's because they provide electricity from a portfolio of assets. And with this new agreement, they can grow their portfolio at a lower risk and lower cost of capital. As the company boasts in its investor day presentation, 95% of its energy pipelines are in the top fifty data center markets.

Investors should take a long look at Brookfield. Global demand for new nuclear reactors will drive Westinghouse' profits. And the agreement with the U.S. government derisks the permitting process in the U.S. That should allow the company to grow its fleet of new nuclear power plants at a lower cost of capital and faster than its competitors. And with the demand for new electricity growing rapidly, this is an excellent long-term buy and hold stock.