If 2025 is the year when nuclear energy stocks made a comeback, then 2026 and beyond may be a time to invest in nuclear fusion stocks. Analysts from McKinsey and Bloomberg project that the nuclear fusion market may exceed $1 trillion by 2050.
Before you decide to invest in this market, it’s important to know the what – and the when – that comes with this technology. Nuclear fusion is the process of fusing light atomic nuclear energy to release energy. There are key differences between nuclear fusion and nuclear fission, which is the technology used in today’s nuclear reactors:
- Produces virtually no long-lived radioactive waste
- Emits no carbon
- Uses abundant fuel sources such as hydrogen isotopes found in seawater
Like quantum computing, sustaining a fusion reaction requires extreme temperatures and pressures. However, while quantum computing requires subzero temperatures, nuclear fusion requires conditions that replicate those found inside the sun.
That meant the technology was out of reach outside of theoretical experiments until earlier this decade. In 2022, researchers at the U.S. Department of Energy’s Lawrence Livermore National Laboratory’s National Ignition Facility achieved the first successful ignition.
Since that point, billions of dollars are flowing into private startups. But we’re still at least a decade or two away from commercialization.
However, there’s promising news for retail investors. There are a number of publicly traded companies making significant investments in nuclear fusion. This creates an opportunity to invest in large-cap companies with balance sheets big enough to make bets on this nascent technology, and shield investors from the risk that comes from startups that may never go public, or may go bankrupt.
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Chevron: Energy Transition Meets Next-Gen Power
Chevron Corp. (NYSE: CVX) is best known as a leading integrated oil company with a large footprint in the coveted Permian basin. It will still be several decades before the world is weaned from fossil fuels, if in fact it ever happens. However, as current shareholders are aware, Chevron has been diversifying aggressively beyond oil and gas to hedge against a fossil-free future.
Through Chevron Technology Ventures, the company has invested in hydrogen, carbon capture, and geothermal technology. More recently, the company has backed nuclear fusion startups, such as Zap Energy, which is developing a “sheared-flow-stabilized” fusion reactor that doesn’t rely on magnets.
One reason that CVX stock is attractive in this space is that it offers the opportunity for future growth with current income via a dividend that has a 4.43% yield. The company is also part of the exclusive Dividend Aristocrats, having increased its dividend payout for 38 consecutive years.
It’s a heads you win, tails you still win scenario. If oil prices rise as expected to support the infrastructure buildout across the country, CVS stock will be an obvious winner. If nuclear fusion lives up to its promise, you’ll be positioned to capture some of that growth as well. And you get it all in a stock with a rock-solid balance sheet including a history of share buybacks.
Microsoft: Fusion as the Future of Data Center Power
Microsoft Corp. (NASDAQ: MSFT) is one of the world’s largest hyperscalers relative to artfiicial intelligence (AI) and data centers. The company has pledged billions of dollars to support what is being termed as insatiable demand.
But there’s a catch. All of this power requires a tremendous amount of energy. In face, the International Energy Association (IEA) predicts that data centers could consume up to 30% of U.S. electricity by 2030. That’s not sustainable for our power grid or consumers’ wallets.
That’s a key reason why Microsoft is investing in the nuclear fusion startup, Helion Energy. Microsoft has agreed to buy fusion-generated electricity from Helion as early as 2028. This is a bet on energy security and AI scalability. But for investors this is an opportunity for Microsoft to use clean, cheap power to press their advantage in the cloud and AI.
MSFT stock trades at around $516 as of October 20. However, even without the potential benefits of nuclear fusion, analysts project the stock could climb above $600 or more in the next 12 to 18 months.
Alphabet: Backing the Science Behind the Breakthroughs
Like Microsoft, Alphabet Inc. (NASDAQ: GOOGL) is also investing heavily into nuclear fusion startups. However, whereas Microsoft is investing in a commercialized future, Alphabet is investing to ensure that future can be achieved.
Specifically, through its venture arm, Google Ventures, Alphabet is providing machine learning and plasma modeling tools to help startups – such as TAE Technologies and Commonwealth Fusion Systems accelerate fusion experiments. The company’s goal is to become an indispensable partner to other companies that are attempting to make this technology a reality.
At around $256 per share, GOOGL stock is up more than 35% in 2025 and it’s now trading above analysts’ consensus estimates. However, recent price targets put the stock at $300 or higher in the next 12 to 18 months. That doesn’t account for the company’s nuclear fusion investments, which it can afford due to its strong cash position.
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