In recent years, nuclear energy has staged a remarkable comeback, spurred by the dual pressures of increasing electricity demand and the urgent need for decarbonization. At COP28 last year, world leaders set an ambitious goal to triple global nuclear capacity by 2050—a clear sign of the critical role that nuclear energy is expected to play in future energy landscapes. The UBS Nuclear Power Thematic Basket (UBXXNCLR) has mirrored this momentum, posting an impressive 72% growth this year, making it the top-performing thematic basket at UBS.

Why Nuclear Energy, and Why Now?

The renewed interest in nuclear energy is driven by its unique benefits in the global shift towards sustainable power. Nuclear power offers a stable, carbon-free source of electricity, which is becoming increasingly essential as the world pushes to reduce its reliance on fossil fuels. Unlike renewables like wind and solar, which are dependent on weather conditions, nuclear energy provides reliable, round-the-clock electricity generation. This consistency is vital as electricity demand continues to grow.

In addition to the goal set at COP28, which highlighted nuclear as a cornerstone of future energy solutions, nuclear power has taken on new importance due to advancements in artificial intelligence (AI). The computational workloads involved in AI model training and inference are vast, placing unprecedented demands on power grids worldwide. As AI development surges, the need for a stable, carbon-neutral energy source has only become more urgent. Nuclear energy’s ability to meet these high-energy requirements without contributing to greenhouse gas emissions is another reason for its resurgence.

The UBS Nuclear Energy Basket: A High-Performance Portfolio

The UBS Nuclear Power Thematic Basket (UBXXNCLR) is designed to capture the upward momentum of nuclear energy investments. This carefully curated portfolio includes companies poised to benefit from the industry’s growth across the nuclear supply chain, from reactor manufacturers and uranium suppliers to service and maintenance providers.

With a 72% increase in value so far this year, the Nuclear Power basket has outperformed other UBS thematic baskets, underscoring the powerful impact of these secular trends. This performance is not only a reflection of the heightened interest in nuclear power but also of the increasing recognition of nuclear as an essential component of the global energy transition.

Why Nuclear Power Is Here to Stay

As we look to the future, the drivers for nuclear energy’s growth remain strong. The world’s energy needs are not slowing down, and AI, alongside other data-intensive technologies, will continue to demand stable, reliable power sources. Nuclear energy, with its near-zero carbon emissions and potential for large-scale production, stands out as a key solution.

For investors, the UBS Nuclear Power Thematic Basket represents an opportunity to participate in a sector that is gaining momentum due to its environmental benefits and scalability. Given its exceptional performance this year, this basket offers an appealing way to align investment strategies with one of the most significant energy trends of the century.

As we push towards a decarbonized future, nuclear power’s comeback is more than just a trend—it’s a necessity.