LEU Stock Gains Traction as Nuclear Power Becomes AI's Energy Solution

Centrus Energy Corp. (LEU) has emerged as a critical player in the nuclear energy revolution, riding the wave of artificial intelligence’s unprecedented power demands. The uranium and nuclear fuel services company has attracted significant Wall Street attention as the sector reshapes America’s energy infrastructure.

The AI Energy Demand Explosion

The artificial intelligence boom is fundamentally transforming electricity consumption patterns. U.S. electricity demand is projected to jump 25% by the end of this decade, with growth reaching 75-100% by 2050. The reason is straightforward: massive AI data centers consume electricity equivalent to mid-sized cities. Global spending on AI data center infrastructure is expected to reach approximately $7 trillion by 2030, with roughly $1.3 trillion flowing into power generation and energy infrastructure.

Nuclear energy has become the preferred solution for this energy crisis. Nuclear power plants operate at 93%+ capacity, making them 1.5-2X more reliable than natural gas and 2.5-3.5X more dependable than renewable sources. Nuclear has already supplied roughly 50% of America’s carbon-free electricity for decades.

The U.S. government is moving aggressively to quadruple nuclear capacity by 2050, while major tech companies including Microsoft and Meta have secured long-term power agreements with nuclear operators.

Centrus Energy’s Strategic Position

Centrus Energy stands out as one of the few pure-play domestic uranium companies accessible to U.S. retail investors. The Bethesda, Maryland-based company supplies low-enriched uranium (LEU) and nuclear fuel components to utilities across the U.S. and internationally. More importantly, it’s pioneering High-Assay, Low-Enriched Uranium (HALEU)—fuel enriched between 5-20%—which is essential for next-generation small modular reactors.

In 2023, Centrus opened the first new U.S. uranium enrichment facility to begin production since 1954. On January 6, the Department of Energy awarded the company a $900 million task order to expand its Piketon, Ohio facility for commercial-scale HALEU production. The company has also secured $2.3 billion in LEU purchase commitments from utilities, pending financing approval.

Technical Performance and Valuation

LEU has climbed 1,350% over the past five years, reflecting the market’s recognition of the nuclear energy megatrend. However, the stock currently trades 25% below its October highs and a remarkable 95% below its 2007 all-time peak, presenting potential entry points for investors.

Recent price action has been constructive. LEU recovered above its 50-day moving average to start 2026 and found support at its 200-month moving average. Earnings revisions have surged in recent months, with 2026 estimates up 10%, while Most Accurate earnings projections came in above consensus for fiscal 2025-2026.

Revenue growth, while modest in near term—projected at 2% for 2025 and 10% for 2026—follows solid 38% sales expansion in 2024 and 9% growth in 2023.

Why LEU Matters Now

The convergence of three powerful forces supports Centrus Energy’s outlook. First, the nuclear energy industry is experiencing genuine supply-demand imbalance as uranium demand is expected to outstrip supply. Second, the U.S. government is aggressively reshoring nuclear fuel production after decades of neglect. Third, energy security concerns have made domestic uranium independence a strategic priority.

Investors increasingly view nuclear energy stocks as the most reliable way to gain exposure to the AI energy megatrend. Unlike picking individual AI technology winners—a challenging task in a rapidly evolving sector—securing reliable, affordable power is an undeniable necessity driving the AI infrastructure arms race.