Nuclear power is reentering the center of America’s energy strategy as AI, data centers, and mass electrification push electricity demand to levels not seen in decades. Since nuclear already produces more carbon free electricity than solar and wind combined, the U.S. cannot meet future demand without it.
This shift has put renewed attention on Centrus Energy. The stock has swung wildly this year inviting the question, is the recent decline a chance to buy into a strategic player in the nuclear fuel supply chain?
Key Points
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Centrus is uniquely positioned for rising nuclear demand as the only U.S. licensed producer of HALEU, the fuel next-gen reactors will need.
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The U.S. must replace Russian uranium by 2028, and Centrus’ Piketon plant is the leading candidate to anchor domestic enrichment.
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The stock’s recent pullback creates potential upside for long-term investors willing to accept volatility.
What Does Centrus Do?
Centrus sells low enriched uranium to commercial utilities, sourcing its material from international suppliers. It also works closely with the Department of Energy through its technical solutions segment, which includes engineering, advanced manufacturing, and most notably, early stage production of high assay low enriched uranium, or HALEU.
HALEU is the fuel required for many next generation reactors, including small modular and advanced designs now being developed. These reactors are not yet commercial, but early deployments are targeted for the late 2020s and early 2030s, which means a reliable HALEU supply must be built well in advance.
The HALEU Advantage
Only Russia can currently produce HALEU at commercial scale, and the United States still relies on Russia for roughly one quarter of its enriched uranium imports.
Congress has already legislated a phaseout of Russian LEU by 2028, creating a significant supply gap that must be filled by domestic producers.
Centrus is the only U.S. company licensed by the Nuclear Regulatory Commission to produce HALEU and the only non Russian commercial scale option. If federal funding accelerates and utilities commit to long term contracts, Piketon could become the backbone of a rebuilt national enrichment capability.
Is the Stock Worth Considering
Centrus is not cheap on traditional valuation metrics, trading at almost 50x expected earnings. But that number has already fallen from earlier peaks, and the market values the company based on its potential role in domestic enrichment, not its current earnings base.
If Piketon scales, Centrus can shift from a reseller into a high margin producer with a strategic foothold in U.S. energy security. If it cannot scale, the company remains exposed to geopolitical constraints and supply chain risk.
The stock will likely remain volatile, and it is not suitable for short term investors. But for those who see nuclear energy playing a larger role in the power grid and recognize domestic enrichment as a critical bottleneck, the current pullback could be an appealing moment to start building a position.
Final Takeaway
Centrus is far from risk free, but it holds a rare position at the intersection of national security, next generation reactor development, and America’s push for reliable clean power.
With the stock nearly cut in half from its highs, the current dip looks like a reasonable entry point for long term investors willing to ride the volatility in exchange for exposure to a potentially indispensable piece of the nuclear revival.