The small modular reactor maker could have a bright future.For over a decade, most nuclear energy stocks underperformed the S&P 500. Back in February 2011, the world's top nuclear energy exchange-traded fund (ETF) -- the Global X Uranium ETF (URA +1.43%) -- set a record high of $92.31. By March 2020, it had sunk to an all-time low of $5.97.During that period, the month-end spot price of uranium fell from $94.74 to $30.82. That decline can be attributed to the Fukushima nuclear disaster in 2011, which drove ...

An updated edition of the October 7, 2025 article.Nuclear energy is increasingly being recognized as a key resource in meeting the world’s growing demand for clean electricity. As utilities shift toward low-carbon power, nuclear plants are playing a crucial role by providing consistent, carbon-free generation. Unlike solar and wind, which fluctuate with weather patterns, nuclear power delivers steady output year-round. The recent restart of a once-closed U.S. nuclear facility highlights the sector’s renewed ...

Core Insights - First Hydrogen Corp. has initiated technical research in collaboration with the University of Alberta to identify non-radioactive molten-salt fuel mixtures for small modular reactors (SMRs) [1][2] - The research aims to optimize reactor fuel materials and guide future R&D steps, including lab setup and supplier engagement [1][2] - The project is expected to advance First Hydrogen's commercial scale-up objectives in the clean energy sector [2][4] Research and Development - The research will focus on selecting surrogate mixtures that mimic the thermophysical behavior of uranium-bearing fuel salts, prioritizing those suitable for near-term lab evaluation [2] - Prof. Muhammad Taha Manzoor's team will analyze the availability and procurement options for the selected molten-salt mixtures, considering regulatory requirements [2] Industry Context - Molten-salt fuels are gaining attention for their safety, efficiency, and flexibility in nuclear energy applications, allowing for better heat transfer and safer operating conditions compared to conventional solid fuel rods [3] - The International Energy Agency (IEA) projects that electricity consumption for data centers will more than double from 415 terawatt-hours (TWh) in 2024 to 945 TWh by 2030, driven by advancements in artificial intelligence [5] Company Vision - First Hydrogen aims to integrate clean energy solutions for data centers, AI, and green hydrogen production, aligning with its long-term vision for SMRs [4] - The company is committed to developing advanced clean energy solutions, including green hydrogen from state-of-the-art SMRs, to meet global climate goals [7]

Core Insights - The stock of Oaklo experienced significant volatility, dropping nearly 7% before recovering to trade between 116 and 104, indicating market indecision following a reported net share loss of 20 cents, which was worse than the expected loss of 13 cents [2][4] - Despite the disappointing earnings report, Oaklo's stock is up over 400% year-to-date, suggesting a disconnect between its performance and valuation, driven largely by narrative trading related to AI and small modular reactors (SMRs) [4][5] Company Performance - Oaklo reported a deeper than expected loss of 20 cents per share, with minimal revenue, leading to discussions about the hype surrounding the stock [2][4] - The company has received approval for its nuclear safety design from the Department of Energy (DOE) and is in the process of building a fuel fabrication facility, but questions remain about the significance of these milestones [9][10] Industry Context - The small modular reactor sector is characterized by high volatility, with many stocks in this space experiencing fluctuations of around 10% [3][6] - There is a belief that small modular reactors could play a crucial role in meeting energy demands, particularly in the context of AI and data center growth, although no company in this sector has yet produced power at a commercial scale [6][7] - Regulatory support exists, but challenges remain in terms of component bottlenecks and the lengthy timelines required to bring power plants online [8][9] Investment Outlook - Long-term investment in the nuclear energy sector is viewed positively, with suggestions to buy on dips, despite the current lack of revenue generation from many companies [8][9] - BWXT is highlighted as a more stable investment within the sector, having secured government contracts and already producing energy through modular systems [11][12] - The potential for consolidation among successful startups in the SMR space is noted, with larger companies likely to acquire promising smaller firms [16][17]

Core Insights - Nuclear energy is emerging as a vital solution for clean and reliable energy, particularly as the world shifts away from fossil fuels [2][9] - Innovations in nuclear technology, such as small modular reactors (SMRs) and portable microreactors, are enhancing the safety, efficiency, and accessibility of nuclear power [3][9] - The nuclear energy sector is supported by government initiatives and growing demand for stable energy sources, particularly from data centers and AI technologies [19][21] Uranium Miners - Cameco Corp. is one of the largest uranium producers globally, operating high-grade mines in Canada, the U.S., and Kazakhstan, positioning itself to meet rising global demand [7] - Denison Mines Corp. focuses on high-grade uranium projects in the Athabasca Basin, with its Wheeler River Project being a significant asset for low-cost production [8] - NexGen Energy is advancing the Rook I project in Canada, aiming for innovative mining techniques to enhance efficiency and environmental responsibility [10] Nuclear Industrials - Oklo Inc. is developing ultra-compact micro-reactors for remote locations and industrial sites, utilizing recycled nuclear fuel for sustainability [11] - BWX Technologies specializes in nuclear components and services, focusing on advanced reactors and small modular reactor technology [12] - Centrus Energy Corp. supplies low-enriched uranium and is developing high-assay, low-enriched uranium for advanced reactors, positioning itself strategically in the fuel supply chain [13] Nuclear Utilities - Constellation Energy Corp. is the largest producer of carbon-free energy in the U.S., operating nuclear plants and exploring partnerships for next-generation technologies [14] - Public Service Enterprise Group operates nuclear plants in the U.S. and is committed to a low-carbon future, supporting regional power demands [15] - PG&E Corp operates California's last nuclear power plant, the Diablo Canyon Power Plant, ensuring a stable, low-emission power supply [16]

Core Insights - The investment case for nuclear energy is gaining traction due to several distinct tailwinds, including technological advancements and the fundamental benefits of nuclear power [1] Growth Potential of Small Modular Reactors - 35% of financial advisors highlighted the growth potential of small modular reactors (SMRs) as the most interesting aspect of the nuclear sector, indicating a shift towards modular construction and flexible deployment in various applications [2] AI Demand Drivers - 22% of advisors noted nuclear's potential benefits as an AI adjacency, emphasizing that reliable electricity is crucial for the growth of AI, with power demand expected to increase significantly [3] Support from Technology Companies - Major technology companies are increasingly supporting nuclear development, recognizing their reliance on stable power sources [4] Traditional Strengths of Nuclear Power - 18% of respondents cited carbon-free power generation as a key strength, while 13% pointed to reliability and long operational lifespans, and 11% emphasized energy and national security benefits [4] Comprehensive Investment Narrative - The investment case for nuclear energy is multifaceted, combining new growth drivers like SMRs and AI with the established benefits of clean, reliable, and secure baseload power [5]

Core Insights - Wells Fargo Investment Institute is optimistic about nuclear energy as a key solution to meet rising U.S. power demand, aligning with views from Cathie Wood's Ark Invest [1][5] Group 1: Power Demand Projections - U.S. power demand is projected to increase by 25% over the next decade, with a near-term annual growth rate of 2% to 2.5% expected over the next five years [2][3] - The primary driver of this demand surge is artificial intelligence, with states like Texas and California already facing challenges in meeting peak usage demands [3] Group 2: Nuclear Energy as a Solution - Wells Fargo suggests that nuclear energy, particularly through advanced technologies like small modular reactors (SMRs), is a viable option to address the anticipated power demand [4][5] - The full deployment of SMRs is estimated to be at least five years away, but companies in the Industrials sector developing this technology are viewed favorably by Wells Fargo [5] Group 3: Market Performance of Nuclear-Linked Stocks - Significant market gains have been observed in nuclear-linked stocks, with Oklo Inc. rising over 454%, Lightbridge Corp. up over 354%, and Nuscale Power Corp. increasing by 114% year-to-date [6][7] - Nuclear-focused ETFs have also performed well, with the VanEck Uranium and Nuclear ETF and the Range Nuclear Renaissance Index ETF both up over 68% year-to-date [7][9] Group 4: Favorable Outlook for Utilities Sector - Wells Fargo anticipates that the Utilities sector will benefit from increased power demand and pricing, with natural-gas turbines from Industrials companies currently bridging the immediate power gap for data centers [10]

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Group 1 - NuScale Power's shares increased by 15.5% this week, outperforming the S&P 500 and Nasdaq-100, driven by strong earnings reports from major tech companies indicating sustained AI spending [1] - The significant energy demands of AI data centers have led to increased interest in nuclear energy stocks, particularly NuScale, as these companies ramp up capital expenditures [2] - Major tech firms like Meta, Microsoft, and Amazon are expected to set new capital expenditure records next year, which bodes well for NuScale's prospects in supplying small modular reactors (SMRs) for these data centers [3] Group 2 - Despite the potential opportunities, NuScale currently has minimal revenue and high ongoing costs, with its technology still under development and facing lengthy regulatory approval processes [5] - The ongoing surge in AI data center spending reinforces investor confidence in the demand for NuScale's reactors, as indicated by the latest earnings from large tech companies [7]

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].