Trump Orders Nuclear Overhaul: These 3 Stocks Stand to Benefit

Core Viewpoint - Nuclear stocks surged following President Trump's executive orders aimed at accelerating nuclear energy development, with a focus on reducing licensing approval times and allowing construction on federal land. The article argues that investors should remain optimistic about nuclear stocks through 2025 due to increasing demand and supportive government policies [1]. Group 1: Demand Drivers - The demand for electricity from AI data centers is increasing, putting pressure on traditional power sources. Nuclear power is positioned to alleviate this strain, with major tech companies like Google and Microsoft entering agreements to develop nuclear energy sources [2]. - The International Energy Agency forecasts record nuclear output by 2025, with tech firms expected to add 30 gigawatts of nuclear power to the grid over the next decade, presenting significant opportunities for energy investors [2]. Group 2: Regulatory and Policy Support - The global push for nuclear energy is gaining momentum, with numerous countries aiming to adopt clean, sustainable energy sources. The United Nations' COP28 conference set a goal to eliminate fossil fuels by 2050, which includes tripling nuclear energy output [3]. - Countries such as South Korea, China, and the U.K. are implementing individual policies to boost nuclear production, further enhancing the regulatory landscape for nuclear energy [3]. Group 3: Technological Advancements - The executive orders highlighted advancements in small modular reactors (SMRs), which are seen as a safer, more scalable alternative to traditional nuclear plants. SMRs can be deployed in remote areas and complement renewable energy sources, requiring less capital investment [4]. - NuScale Power, a leader in SMR technology, has seen significant stock price increases following the executive orders, indicating strong market interest in this technology [7]. Group 4: Key Nuclear Stocks - NuScale Power: The stock rose over 19% after the executive order announcement, benefiting from its status as the only approved SMR technology in the U.S. The company has a contract to provide two gigawatts of energy to data centers in Pennsylvania and Ohio, with a year-to-date stock increase of over 60% [7][9]. - Cameco Corp: As the largest uranium miner and refiner globally, Cameco's stock jumped more than 10% following the announcement. Analysts expect increasing nuclear demand to drive the stock higher, with a price target of $70.53, representing over 20% upside [11][12]. - BWX Technologies: This company supplies essential materials for nuclear facilities and reported $2.78 billion in annual sales. The stock has shown strong performance, with a recent earnings report indicating double-digit revenue growth [13][14].