MW These energy stocks have been powerful investments. Here's what's next for them.

By Stephen McBride

Solar is a proven moneymaker with real profits and fast-growing demand. Nuclear is just getting started.

Nuclear and solar power are both part of the clean-energy revolution. But they are at markedly different stages of growth.

What's the better investment right now: solar or nuclear? That's a question I've heard a lot lately, and for good reason.

Nuclear stocks were some of the hottest stocks of the year, but have cooled off big time, with names like Oklo $(OKLO)$ off 35% and NuScale Power (SMR) losing about 50% over the past month.

Solar stocks are steadily rising, meanwhile, with the Invesco Solar ETF TAN, for example, gaining around 45% over the past six months, though it's down from its early November peak.

Both nuclear and solar are part of the clean-energy revolution. But they are at markedly different stages of growth.

Solar is a proven moneymaker - a mature industry with real profits and fast-growing demand. Nuclear is just getting started. Nuclear's most exciting breakthroughs are still unfolding in private markets, off-limits to everyday investors.

Solar: Profitable megatrend

Solar isn't some futuristic promise. It's here. It's scaling fast. And it's throwing off serious cash.

While artificial intelligence (AI) and semiconductors have dominated headlines, solar has become one of the most profitable megatrends in the world.

Over the past decade, the cost of generating solar power has fallen roughly 90% according to the International Energy Agency $(IEA)$. Solar panels get smarter, lighter and cheaper to deploy every year.

Just last year, a record 400 gigawatts of solar capacity was added worldwide. That's roughly three-quarters of all renewable-energy capacity, per the IEA.

Solar isn't some futuristic promise. It's here. It's scaling fast. And it's throwing off serious cash.

One of my favorite ways to play this trend is with Nextpower $(NXT)$ (formerly Nextracker), the company behind the world's leading solar-tracking systems. Its tech lets panels "follow" the sun throughout the day, squeezing out more energy (and profit) from every ray of light.

Global solar installations are expected to double by 2030, and Nextpower sits at the center of that boom. Utility-scale solar is now the cheapest source of new electricity across much of the world. And demand for tracking technology is outpacing even optimistic forecasts.

Unlike many "green tech" stories propped up by subsidies or hype, Nextpower is a real business - with revenue up nearly 30% year-over-year, positive cash flow and a growing backlog of projects stretching into 2026.

Nuclear's next act

Until small modular reactors scale and governments streamline approvals, nuclear remains a story of potential, not profit.

What about nuclear? There's no question we're seeing a nuclear renaissance. Small modular reactors (SMRs) are the future: clean, scalable, and far safer than the concrete behemoths of the past. This next-gen tech can be built in months, not years, and deliver carbon-free power at competitive costs.

But here's the catch: The best opportunities are still private. For example, in Austin, Texas, I visited the team at Aalo Atomics, a startup aiming to mass-produce SMRs in a factory setting. Their vision is to roll SMRs off an assembly line the way Tesla $(TSLA)$ churns out Model Ys.

If Aalo Atomics pulls this off, it could fundamentally reshape how the world builds nuclear power. But for now, it's still a behind-the-scenes story.

Meanwhile, stocks such as BWX Technologies $(BWXT)$ and Cameco $(CCJ)$ have soared since mid-2023 as investors have awakened to the nuclear opportunity.

But this remains a long game. Nuclear is still in its "prove it" phase. Regulation and cost are the hurdles. It takes years and billions of dollars to get even a single plant approved.

The physics work. The engineering is sound. But until SMRs scale and governments streamline approvals, nuclear remains a story of potential, not profit. My favorite private nuclear companies are Aalo and Valar Atomics in El Segundo, Calif. If Valar executes, it'll make nuclear cheap.

Two megatrends, two timelines

If you're considering adding solar and nuclear stocks to your portfolio, think of them running on two different clocks. Solar is now. It's profitable. It's scaling.

Nuclear is next. The innovation is exciting, but the investment opportunities are still taking shape. Once the SMR pioneers start commercial production, a new wave of investable names will follow.

Make no mistake: the money - and political will - are lining up. The U.S. Energy Department is investing $3.4 billion into SMR demonstration projects. Japan, South Korea and France are rebooting their nuclear programs. We're closer to the tipping point than most people realize.

The bottom line

Investors love a clean either/or story. But this isn't one.

Solar powers the grid during the day. Nuclear fills the gaps when the sun goes down.

The question isn't which one will win; it's when each will hit its stride. Solar's time is now. Nuclear's time is coming.

Stephen McBride is the chief analyst at investment advisory service RiskHedge and author of the weekly newsletter The Jolt. McBride has no positions in the stocks mentioned. RiskHedge has recommended NXT, TSLA and CCJ to its newsletter subscribers.

More: How this Middle East oil giant got a nuclear big brother - and why your portfolio will feel the heat

Also read: 'There's definitely a bubble in markets,' Ray Dalio says. But that doesn't mean you should sell.

-Stephen McBride

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November 25, 2025 15:22 ET (20:22 GMT)

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