Several key technologies have come to the forefront over the past few years. That includes electric vehicles, which reduce dependence on fossil fuels and lower carbon emissions. And artificial intelligence technology could be as transformative as the internet, if not more.
Both of these technologies require electricity. Lots of it. And investors are starting to move into utility stocks as a play on the higher power demand likely in the years ahead.
But one energy source looks best placed for this rising demand right now: nuclear power. A new generation of nuclear reactors are coming online. And utilities are getting approval to start using them at scale.
That could bode well for companies like Vistra (VST), a Texas-based utility. Shares have soared 238% over the past year, but the stock is still inexpensive at 16 times forward earnings.
Nuclear energy could offer a high baseload for powering AI and charging smartcars, and unused energy could be used for crypto mining.
Action to take: Investors may want to build a stake here, and use any pullback to add to that position. At current prices, Vistra pays a 0.8% dividend, and has a history of growing that payout over time.
For traders, the January 2025 $140 calls, last trading for about $6.50, could see high double-digit returns on a further uptrend in shares over the coming months.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.