Wells Fargo Investment Institute is betting on the “nuclear option” to help power the U.S. economy, a stance that echoes recent bullishness from Cathie Wood‘s Ark Invest.

US Power Demand Could Rise 25% Over 10 Years

In new market commentary, the firm highlights an anticipated surge in electricity demand, primarily driven by artificial intelligence (AI), and identifies the Industrials and Utilities sectors as key beneficiaries.

The analysis, authored by Senior Global Market Strategist Scott Wren, projects that U.S. power demand could rise by a staggering 25% over the next decade-plus. In the near term, Wells Fargo estimates a 2% to 2.5% annual increase over the next five years.

While AI is the main new driver, the report notes that states like Texas and California were already struggling to meet peak-usage demand even before the advent of power-hungry data centers.

‘Nuclear Option’ Is The Best Bet

To meet this demand, Wells Fargo argues that “the nuclear option appears to be back on the table” alongside other sources like coal, natural gas, and renewables.

The firm points to the development of advanced nuclear technologies, particularly small modular ...