Investment Rating - The report suggests a positive outlook for the nuclear power industry, particularly in the U.S., with a focus on companies involved in nuclear fuel supply, equipment manufacturing, and power operations [9][16]. Core Insights - The U.S. government has signed a cooperation agreement with Westinghouse Electric to build nuclear reactor projects valued at no less than $80 billion, indicating significant investment in the nuclear sector [1][11]. - The commercialization of Small Modular Reactors (SMRs) in the U.S. is expected to accelerate by 2025, driven by the demand from AI tech giants' data centers, regulatory support, and demonstration projects from leading SMR companies [2][12]. - The U.S. nuclear supply chain is heavily reliant on foreign suppliers for critical components and fuel, which presents both challenges and opportunities for domestic manufacturers and foreign suppliers from Japan, South Korea, and Europe [3][13]. - The surge in demand from AI data centers is revitalizing interest in nuclear power as a stable, low-carbon energy source, highlighting the urgency for new nuclear builds to meet rising electricity demands [4][14]. Summary by Sections Upstream - Focus on companies with scarce licenses and limited capacity, such as Cameco and Centrus Energy, which are positioned to benefit from the growing demand for nuclear fuel [9][16]. Midstream - Attention should be given to nuclear equipment manufacturers like BWX Technologies, Doosan Enerbility, and NuScale Power, which are expected to see growth as demonstration projects come online [9][16]. Downstream - Emphasis on nuclear power operators such as Talen Energy and Entergy, which are likely to have visible operating cash flows and benefit from the increasing reliance on nuclear energy [9][16].

Core Insights - Nuclear energy is experiencing a resurgence as a viable clean energy source, projected to become the world's second-largest low carbon electricity source by 2024, with U.S. generation capacity expected to quadruple by 2050 [1][2]. Company Summaries 1. Oklo - Oklo is developing a small, fast-spectrum reactor named Aurora, capable of supplying up to 75 megawatts of electric power, suitable for data centers [4]. - The reactor is designed to operate on high-assay low-enriched uranium (HALEU), allowing for up to 10 years of operation without refueling [5]. - Currently pre-revenue and awaiting regulatory approval, Oklo is part of a government program to expedite the permitting process, aiming to activate its first reactor by mid-2026 [7]. 2. Centrus Energy - Centrus Energy is the only U.S. company licensed to produce HALEU, making it a critical partner for Oklo [8]. - The company primarily generates revenue from low-enriched uranium (LEU) sales, with some procurement from foreign sources [10]. - Centrus has a contract with the U.S. Department of Energy to produce HALEU through June 30, 2026, with options for eight additional years, positioning it as a key supplier for the domestic HALEU market [11]. 3. NuScale Power - NuScale is designing small modular reactors (SMRs) and has received design approval from the Nuclear Regulatory Commission, marking it as the first and only SMR to achieve this [12]. - The company is currently engaged in front-end engineering work for Romania's first SMR power plant, with a decision on full construction expected by mid-2026 [13]. - Like Oklo and Centrus, NuScale's technology remains unproven at a commercial scale, indicating potential volatility as it seeks to generate revenue [14].

Core Insights - Nuclear energy stocks experienced a significant rally following Cameco Corp.'s announcement of a major contract with the U.S. government to construct new nuclear reactors, valued at $80 billion, which has bolstered confidence in the nuclear sector [1][3]. Group 1: Market Reaction - Shares of Cameco surged in heavy trading, leading to a broader rally among nuclear developers such as NuScale Power, Inc. and Oklo Inc. [2] - Uranium stocks also saw an increase, with the VanEck Uranium and Nuclear ETF and the Global X Uranium ETF climbing as traders shifted towards nuclear-themed investments [2]. Group 2: Partnership Details - The agreement entails the construction of nuclear reactors using Westinghouse designs, expected to provide consistent electricity, with a portion allocated for domestic data center and AI-related computing needs [3]. - U.S. Secretary of Energy Chris Wright emphasized that this partnership aligns with President Trump's vision for a nuclear renaissance and aims to enhance national security [4][5].

Group 1 - Pomerantz LLP is investigating claims on behalf of investors of NuScale Power Corporation regarding potential securities fraud or unlawful business practices by the company and its officers/directors [1] - Citigroup downgraded NuScale from Neutral/High Risk to Sell/High Risk on October 21, 2025, citing competition from new entrants and the lack of a binding customer contract [2] - Following the downgrade, NuScale's stock price fell by $9.49 per share, or 21.47%, closing at $34.72 per share on October 22, 2025 [3]

Core Insights - Ten large-cap stocks experienced significant declines last week, raising concerns for investors regarding their portfolio holdings [2] Company Performance Summary - Oklo Inc. (NYSE:OKLO) lost 15.15% this week [2] - Rigetti Computing, Inc. (NASDAQ:RGTI) fell 17.94% amid reports of the Trump administration negotiating with U.S. quantum computing firms for federal funding [2] - STMicroelectronics (NYSE:STM) declined 17.17% after providing fourth-quarter revenue guidance below analyst expectations [2] - D-Wave Quantum Inc. (NYSE:QBTS) dropped 17.57% this week [2] - NuScale Power Corporation (NYSE:SMR) fell 18.53% following a downgrade from Citigroup, which lowered its price target from $46 to $37.50 [2] - Deckers Outdoor Corporation (NYSE:DECK) decreased by 13.33% after issuing fiscal year 2026 sales guidance below expectations, leading to multiple analyst price forecast reductions [2] - Fermi Inc. (NASDAQ:FRMI) saw a decline of 14.71% this week [2] - Harmony Gold Mining Company (NYSE:HMY) fell 13.16% as precious metals stocks declined due to a pullback in gold and silver prices [2] - MP Materials Corp. (NYSE:MP) dropped 11.75% as rare earth mineral-related stocks traded lower following a U.S.-Australia deal to boost supplies of critical metals [2] - AST SpaceMobile, Inc. (NASDAQ:ASTS) fell 14.75% after announcing a proposed private offering [2]

Group 1 - The proposed rule by U.S. Energy Secretary Chris Wright aims to expedite the approval process for data center grid access to 60 days, a significant reduction from the current multi-year timeline [1] - Independent power producers are increasingly selling electricity to data centers, leading to stock price increases for companies such as Talen Energy (up 6.25%), Constellation Energy (up 6.4%), Vistra Energy (up 5.3%), and NRG Energy (up 4%) [1] - Nuclear power companies are also benefiting from the AI boom, with stock price increases for Oklo (up 9.1%), Centrus Energy (up 7.8%), Nuscale Power (up 0.45%), and NANO Nuclear Energy (up 4.35%) [1] Group 2 - Data centers can receive expedited approval if they include new power plants and agree to reduce electricity usage during peak demand periods [1] - If data centers are located near existing power plants, studies must be conducted to confirm the necessity of that power capacity for grid reliability [2] - Wright's plan aligns with President Trump's goals of revitalizing domestic manufacturing and promoting AI innovation, both of which require unprecedented electricity supply and significant investment in the U.S. power grid [2]

Core Viewpoint - NuScale Power's shares declined by 14.7% this week, contrasting with gains in the S&P 500 and Nasdaq-100, raising concerns about the anticipated energy demand from AI data centers despite a 110% increase in stock value this year [1]. Group 1: Market Performance - NuScale Power's stock fell 14.7% while the S&P 500 and Nasdaq-100 rose by 1.9% and 2.2% respectively [1]. - The stock has seen a significant increase of 110% year-to-date, driven by the rising interest in nuclear energy stocks due to AI's energy requirements [1]. Group 2: Investor Sentiment - Recent news, including a Chinese research paper suggesting AI models can operate more efficiently, has led investors to reassess the expected energy consumption from AI [2]. - Comments from a CEO of a gas and wind turbine producer hinted at potential growth tapering, further influencing investor sentiment [2]. Group 3: Regulatory and Financial Status - NuScale is the only small modular reactor company to have received full regulatory approval from the Nuclear Regulatory Commission, unlike its competitor Oklo [4]. - Despite the promising technology, NuScale faces challenges with low revenue and high ongoing costs, leading to downgrades from analysts at two investment banks to "sell" and "underperform" [4]. Group 4: Investment Considerations - The Motley Fool Stock Advisor has not included NuScale Power in its list of top investment recommendations, suggesting that there are better opportunities available [5]. - Historical examples of successful stock recommendations highlight the potential for significant returns, contrasting with the current sentiment around NuScale [6].

Core Insights - NuScale Power Corp. (NYSE:SMR) has experienced a significant decline in stock performance, dropping 13.21% to close at $38.37, marking its fourth consecutive day of losses due to a rating downgrade and news of its largest shareholder planning to sell additional stakes [1][4] - Citigroup has issued a "sell" recommendation for NuScale with a price target of $37.50, citing negative catalysts such as Fluor Corp.'s divestment and intense competition in the market [2][4] - The current share price reflects an optimistic expectation of NuScale's ability to build 16 GW of reactors by 2040, while the total installation forecast for the US is 56 GW, indicating that market expectations may be overly optimistic given the lack of confirmed customers [3][4] Company Performance - NuScale's stock has been negatively impacted by external factors, including a downgrade from Citigroup and the potential sale of shares by its largest shareholder, which has contributed to a decline in investor sentiment [1][2] - The company is perceived to be overly reliant on its active projects without having material near-term customers, which raises concerns about its capital needs and the timeline for achieving its goals [4] Market Outlook - The market is currently pricing in a level of optimism regarding NuScale's market share that may not be justified, especially in light of the competitive landscape and the absence of confirmed customer contracts [3][4] - While there is potential for investment in NuScale, other sectors, particularly AI stocks, are viewed as having greater promise for higher returns with limited downside risk [5]

Group 1 - Starboard has acquired an almost 5% stake in Fluor, which holds a majority stake in NuScale Power (SMR) [1] - SMR's stock price has decreased by 12.4% to $33.60, marking its fifth consecutive daily loss, despite an 89.6% gain projected for 2025 [1] - SMR reached a record high of $57.42 just last week [1] Group 2 - The recent pullback in SMR's stock price has positioned it near a historically bullish trendline, which may indicate potential for recovery [2] - The stock is currently within 0.75 average true range (ATR) of the 126-day moving average, having remained above this average 80% of the time in the past 10 and 42 trading days [2] - Historical data shows that after similar signals in the last 10 years, the stock was higher one week later 60% of the time, with an average gain of 0.7% [2] Group 3 - At the International Securities Exchange, Cboe Options Exchange, and NASDAQ OMX PHLX, SMR's 50-day put/call volume ratio of 3.66 is higher than 86% of annual readings, indicating increased bearish sentiment [4] - This high put volume suggests potential for bullish activity if the bearish sentiment begins to reverse [4] Group 4 - NuScale Power's put/call open interest ratio of 1.44 is the highest in the past 12 months, indicating a preference for puts among short-term options traders [5] - There is significant opportunity for bullish positions, as 10 out of 15 covering brokerages have a "hold" or worse rating [5]

Core Viewpoint - U.S. nuclear stocks continued to decline, with significant drops observed in several companies [1] Company Performance - Oklo Inc (OKLO.US) experienced a decline of over 11% [1] - Centrus Energy (LEU.US) also fell by more than 11% [1] - NANO Nuclear Energy (NNE.US) saw a decrease of over 8% [1] - NuScale Power (SMR.US) dropped by more than 5% [1]