A new nuclear reactor is launched in the USA. Here are 3 ways you can profit from nuclear power.

Whether we want to or not, the times are moving ever forward. Along with this shift, new investment opportunities are emerging. One of these may be nuclear energy, for example, which is not often mentioned among investors.

Nuclear energy has long been a source of controversy because of its potential risks and benefits. However, as the world faces a global energy crisis, many countries, including the United States, are taking advantage of its benefits. This was evident earlier this week when Georgia Power announced that its Vogtle Unit 3 reactor had safely reached "initial criticality," the first nuclear reactor to do so since May 2016. And what does that reaching initial criticality mean, and why is it so important? The company provided the answer in a statement.

A reactor reaches criticality when the nuclear fission reaction becomes self-sustaining. Achieving initial criticality is necessary for the unit to continue to start up in order to produce sufficient heat to generate electricity.

The company expects Vogtle Unit 3 to be fully operational by May or June of this year and capable of producing clean, emission-free power for the next 60 to 80 years. This is good news for investors looking to take advantage of the nuclear power sector. Given the potential for more nuclear reactors to be in operation in response to the global energy crisis, it might be a good time to consider investing in nuclear energy stocks. If you are one of those investors who would like to ride this wave, here are 3 tips on how you can participate.

Cameco $CCJ

One stock that investors might want to consider is Cameco (CCJ). As a major uranium producer and fuel services provider, Cameco is well positioned to benefit from the growth of nuclear power. The company operates uranium mines in Canada, the US and Kazakhstan, and has long-term contracts with customers around the world, with revenues averaging £21 million a year over the next five years.

In terms of results, the company generated revenues of USD 1.87 billion in the last year, an increase of approximately 27% year-on-year. In terms of net profit, the company reported net profit of USD 89.38 million. In the previous 2 years, the company reported a loss.

As I wrote above, the company may benefit in the future from the growth and expansion of nuclear power generation, which needs uranium as fuel. Cameco is one of the major producers of uranium, so it can be expected to benefit quite a bit from the increased demand for uranium.

NuScale Power $SMR

Another company that investors might want to consider is NuScale Power. NuScale Power develops small modular nuclear reactors for power generation. The company started as a university research project in 2002 and became the first company to have its small modular reactor design approved by the Nuclear Regulatory Commission in 2020. NuScale Power has several projects planned, including the construction of a six-module plant in Idaho. National Laboratory in Idaho Falls, which will produce 462 megawatts of carbon-free electricity. The plant is expected to be fully operational by 2030.

In terms of results and numbers, I consider this a "speculative" investment for now. The company is only in its second year on the stock market, and is not profitable at this time. In terms of revenue, the company generated $11.8 million in revenue last year. In short, the company is at an early stage, and currently still has huge research and development costs.

ETF

Investors who are interested in nuclear energy but don't want to pick winners and losers may want to consider exchange-traded funds (ETFs).

TheVanEck Uranium+Nuclear Energy ETF $NLR is an ETF that tracks the performance of companies involved in uranium mining, the construction, engineering and maintenance of nuclear energy facilities, the generation of electricity from nuclear sources, and the provision of equipment and services for the nuclear power industry. The fund currently holds 24 companies.

Global X Uranium ETF $URA is a targeted play on uranium mining. The fund provides exposure to companies involved in uranium mining and nuclear component manufacturing. It currently holds a total of 47 companies in its portfolio.

The advantage of these ETFs is that you can invest in this sector without any great analytical knowledge. In short, you won't be looking for a needle in a haystack, you'll buy the whole bunch.

Conclusion

Overall, nuclear energy has its pros and cons, but with the global energy crisis, many countries are reaping its benefits. This presents an opportunity for savvy investors to take a look at some nuclear energy stocks or ETFs. Cameco and NuScale Power are two companies that Wall Street analysts like, and both have the potential to benefit from the growth of nuclear power. Investors looking for a diversified approach may want to consider ETFs like the VanEck Uranium+Nuclear Energy ETF or the Global X Uranium ETF.

WARNING: I am not a financial advisor, and this material does not serve as a financial or investment recommendation. The content of this material is purely informational.