Core Insights - November experienced a significant correction in the advanced nuclear energy sector, particularly affecting small modular reactor (SMR) and microreactor companies, which saw substantial stock price declines [1][3] - Industry leaders Oklo Inc., NuScale Power Corp., and Nano Nuclear Energy Inc. have lost over a third of their valuations within weeks, with NuScale Power declining approximately 55%, Oklo by about 39%, and Nano Nuclear Energy by around 37% [2][3] Market Dynamics - The sell-off followed a previous surge fueled by hype around the demand for carbon-free power from AI data centers, but the market began reassessing the risks associated with long-term nuclear investments [3] - The correction highlights the speculative nature of investing in nuclear stocks, despite supportive global energy policies and AI demand [3] Company-Specific Challenges - All three companies are in the pre-commercialization phase, resulting in minimal to no operating revenue, making them vulnerable to market sentiment shifts [4] - The commercial deployment of their technologies is still years away, leading to high cash burn rates and ongoing operating losses, which challenge investor patience [4] - The broader correction in tech and AI-related stocks in November, driven by valuation concerns, also impacted advanced nuclear infrastructure investments [4]