If you’re investing in AI in 2026 and you either want to start afresh or shift holdings, it’s a good idea not to throw your money at the first thing that catches your eye. You need an AI ETF that can provide you with exposure to the AI boom while being solid for long-term growth without AI; the VanEck Uranium and Nuclear ETF (NYSEARCA:NLR) does just that.
Most AI ETFs merely rearrange the same collection of semiconductor and software stocks. NLR invests in nuclear power companies and uranium miners instead. These companies are essential with or without AI, and they can keep growing.
If the AI rally hits a wall, these nuclear stocks aren’t going to plunge all the way down overnight. And if the AI rally keeps accelerating, this ETF will surge along with it.
Why uranium and nuclear stocks are indispensable
Electricity is one of the most precious resources as data centers are multiplying and need more power. The government wants AI companies to secure their own power supply to keep the grid stable, and many companies are choosing small modular reactors.
Unlike solar, which only generates power during the daytime and is subject to weather conditions, nuclear power provides a stable 24/7 baseload. Better yet, it is clean and extremely cheap once the infrastructure is built.
The companies behind nuclear power and uranium aren’t hostage to the AI boom either. Today’s lavish spending on data centers could end in disappointment, but nuclear power will likely still boom.
Why the NLR ETF will likely survive an AI collapse
All you have to do is look at Iran, and then look at how countries are adapting. Countries are making sure they don’t get caught off-guard by another war that turns a single shipping lane into a tourniquet around their economies.
Nuclear power cannot replace every barrel of oil. However, it can displace natural gas in electricity generation. Over the long run, it can be a solid replacement for oil as more cars on the road are electric, especially in countries that don’t produce their own oil.
Taiwan began considering restarting its last nuclear plant, while Japanese politicians called for faster reactor restarts. Belgium and the Netherlands abandoned plans to leave nuclear power, and the European Commission warned governments against closing productive reactors early. Commission President Ursula von der Leyen went further and called Europe’s retreat from nuclear power a “strategic mistake,” according to Reuters.
The United States is pursuing the same broad objective for its own reasons. The Department of Energy wants American nuclear capacity to rise from around 100 gigawatts in 2024 to 400 gigawatts by 2050.
NLR is going to catch tailwinds from all of these countries, independently of the AI buildout. No other ETF has an advantage of this sort.
What could go wrong with this nuclear and why I’d still buy
It’s not all rainbows and sunshine, since despite the necessity of nuclear, you’re still not seeing massive amounts of money pouring into the sector. Nuclear power may be cheap once a plant is running, but building that plant requires an enormous initial commitment. Projects can spend years in regulatory limbo before construction even begins.
It’s likely that once data centers start coming online in greater numbers, this will spur more nuclear projects. Until then, the NLR ETF may deliver lower returns than hotter AI stocks. A lot of bullishness is already priced in.
None of these risks destroys the long-term case for NLR, though. I see a $1,000 investment growing handsomely if you plan to keep it in this ETF for several years or more.
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