This Nuclear Stock Could Be a Big Winner as the U.S. Rushes to Secure Its Fuel Supply

Over the past couple of years, there's been a shift in sentiment toward nuclear energy to meet the huge electricity demands of artificial intelligence (AI) and data centers. The Department of Energy has set an aggressive target to quadruple nuclear capacity by 2050 and aims to have 10 nuclear reactors under construction by 2030.

As part of these efforts, Congress has approved big spending for nuclear innovation and advanced reactor technology. As hyperscalers seek clean-burning energy and the United States seeks to diversify away from Russian sources, Centrus Energy (NYSE: LEU) stands to benefit and could be a big winner in the long term. Here's why.

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Centrus Energy's opportunity to be a domestic nuclear fuel producer

Centrus Energy provides nuclear fuel components, enrichment services, and technical services. The company primarily generates revenue from its low-enriched uranium (LEU) segment, where it sells LEU, the primary fuel used in most commercial nuclear reactors. The company currently sources uranium and related fuel products from supplies, and its customers are utilities that operate commercial nuclear power plants.

The company has two commercial agreements to purchase LEU, one with TENEX, a Russian-based entity. The company has waivers to continue purchasing from Russia, but waivers are set to expire by 2028, as laid out in the "Prohibiting Russian Uranium Imports Act." As a result, there is a pressing need to replace about one-quarter of the enriched uranium the U.S. currently imports from Russia.

In the long term, Centrus aims to go from a procurer/reseller of enriched uranium to a producer. The company has a uranium enrichment facility located in Piketon, Ohio, and has a real opportunity to grow as the United States seeks domestic suppliers of nuclear fuel.

Centrus is one of two entities (Urenco USA being the other) approved by the Nuclear Regulatory Commission (NRC) to produce standard commercial LEU. Centrus is also the only company with an NRC-approved facility to produce high-assay low-enriched uranium (HALEU), the nuclear fuel that will power next-generation small modular reactors and microreactors.

One of the most important things for Centrus is securing funding. The company got good news in January 2026 when the U.S. Department of Energy awarded it a $900 million task order to expand its Ohio facility. This is part of the Department of Energy's broader $2.7 billion investment plan to strengthen domestic enrichment and jump-start HALEU supply chains.

What's next for Centrus Energy

Centrus projects that the first new production cascade (a series of centrifuges used to enrich uranium) at Piketon will be operational 42 months (or 3.5 years) after funds and commercial commitments are officially secured and the buildout is fully mobilized. After that, the second cascade will take six months, and each successive cascade will take two-month increments.

Securing government funding is a major step forward for Centrus in expanding its Piketon facility. The stock has undergone significant volatility due to its expensive valuation and is down 41% from its 52-week high. While it's vulnerable to significant price swings, Centrus is an appealing stock for investors seeking exposure to the long-term buildout of the U.S. domestic nuclear fuel supply chain.

Courtney Carlsen has positions in Centrus Energy. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.