⚛️ MegaTrend Monday: Nuclear Energy

Global energy demands are climbing, and as downsides to renewable energy sources like wind and solar become more apparent - namely, their intermittence - there’s a mad dash to kickstart the formerly flagging nuclear energy sector.

Few turnaround signs are more apparent than the May 23rd Presidential executive order, Reinvigorating the Nuclear Industrial Base, which spells out the long-term bull case in nuclear energy.

Trump’s EO is built on a thesis that America’s dominant position in the nuclear sector is lagging globally, with nearly 90% of global reactors installed since 2017 designed by other countries.

Domestically, nuclear energy infrastructure is in a sorry state, with “swift and decisive […] action required to jumpstart America’s nuclear energy industrial base.”

A key tenet of Trump’s proposal is to reduce regulatory and administrative hurdles; burdensome bureaucratic processes have long been a sticking point in the nuclear sector, with Constellation Energy $CEG ( ▲ 0.4% ) CEO Joe Dominguez once saying, “We’re wasting too much time on permitting.”

Specifically, the Nuclear Regulatory Commission (NRC) must now vote yes or no on new nuclear facility licensing within 18 months. The red-tape-cutting demand is already coming to fruition as one company’s planned uranium mine expansion in Utah bagged regulatory approval in under two weeks.

Global AI and the Nuclear Option

But government tailwinds aren’t the only boon to nuclear stocks on the horizon. Power generation remains a key sticking point in global AI expansion, particularly in emerging markets where reliable electricity is often scarce.

Argentinian Presidential Advisor Demian Reidel sums up the bull case best:

Small modular reactors (SMRs) are taking front and center in the fight for a nuclear future. These compact reactors, assembled on-site to power specific facilities or projects, offer transportability, enhanced safety, and ease of use compared to traditional large-scale reactors.

Their versatility makes them ideal for supporting AI infrastructure in regions with limited grid capacity, or as “just in time” tools to bounce between discrete projects in developed nations.

Over 70 SMR designs are in development globally, with projects like GE Vernova Hitachi’s $GEV ( ▲ 3.9% ) BWRX-300 and TerraPower’s Natrium attracting tons of attention (and investor capital).

How to Play Nuclear Energy

❌ The easy move is to invest in large-cap utilities like Duke Energy $DUK ( ▲ 0.02% ) or established uranium miners like Cameco $CCJ ( ▲ 3.92% ). These are stable picks, true, but capped by internal bureaucratic hurdles and limited growth potential.

✅ Instead, target small-cap disruptors in SMR technology, uranium development, or specialized nuclear services. Small-cap opportunities are more abundant in these smaller sectors, with these sub-sector niches implying significant upside as the industry expands.

SMR Development: Nano Nuclear Energy $NNE ( ▲ 12.19% ) 

Nano Nuclear Energy, with a ~$1.3 billion market cap, is the small-cap leader in micro-Small Modular Reactors (hence the nano in Nano Nuclear). Its KRONOS, ZEUS, and ODIN reactors target niche applications like remote communities and industrial sites, carving out its own sub-niche within the wider SMR trend.

NNE is engaged with the U.S. Nuclear Regulatory Commission on its KRONOS reactor, with pilot deployments eyed for 2028, while subsidiaries hold exclusive fuel transport licenses needed by nearly all SMR development companies (increasing its revenue diversification and competitive moat).

To be fair, the stock (up 25% on the year and a whopping 680% since its May 2024 initial listing) is pre-revenue and volatile. Bottom line - it’s early leadership within the ultra-portable reactor sector supports a long-term outlook, but buying in today is akin to investing in any number of early-stage startups with all the risk that typically entails.

Honorable Mention: Mid-cap company NuScale Power $SMR ( ▲ 20.41% ) designs and markets larger “conventional” SMRs, with its NRC-certified VOYGR SMR targeting commercial operation by 2030.

Uranium Exploration: Ur-Energy $URG ( ▲ 0.99% ) 

Ur-Energy is just outside of penny stock territory, trading at around $1 with a ~$311 million market cap. The firm focuses on in-situ recovery (ISR) mining and exploration in the U.S., primarily in Wyoming. Operating the Lost Creek ISR facility and advancing the Shirley Basin project, Ur-Energy offers a speculative “pick and shovel” play on rising uranium demand.

Ur-Energy reported 68,000 pounds of U3O8 captured at Lost Creek in 2025’s first quarter, with plans to scale production following a $60 million Wyoming Energy Authority contract in April 2025. Likewise, drilling at its Shirley Basin site confirmed high-grade uranium intercepts, supporting a potential second production hub by 2027.

From a macro perspective, uranium pricing bolsters Ur-Energy’s outlook as Western nations reduce reliance on Russian supplies. Uranium pricing has been on a slow but steady upswing since January 2023, and expanded global emphasis on nuclear options should combine with geopolitical strife to further juice the commodity’s cost.

Honorable Mention: Energy Fuels $UUUU ( ▲ 0.93% ) is a leading U.S. uranium producer with a diversified portfolio including rare earths, providing additional upside as China clamps down on foreign metals exports.

Nuclear Technology: Centrus Energy $LEU ( ▲ 8.37% ) 

Centrus Energy is the largest small-cap on today’s list, with a $2.5 billion market cap. It specializes in nuclear fuel enrichment and High-Assay Low-Enriched Uranium (HALEU) production for advanced reactors, and its pivotal upstream role in the nuclear supply chain makes it a small-cap stock to watch.

The company is one of the first to benefit from Trump’s sweeping nuclear plans, having secured a $180 million DoE contract to scale HALEU output at its Ohio plant in May, with production ramping up in 2026. It’s also perhaps the most financially viable pick on our list in the short term, with Q2 2025 revenue reaching $48 million, up 25% year-over-year. Though it posted a $5 million net loss, its growth is signaling a path toward profitability.

Best of All Worlds: VanEck Uranium and Nuclear ETF $NLR ( ▲ 5.85% ) 

• Expense Ratio: 0.56%, or $56 per $10,000 invested.

• Total Assets: $1.3 billion

• YTD Performance: +25.34%

• TTM Yield: 0.60% 

If you’re bullish on nuclear energy as a whole and small-cap stocks, but want a bit more diversification to offset the largely speculative nature of most of our picks, the VanEck Uranium and Nuclear ETF should meet the mark.

NLR combines a wide range of speculative growth and stable, long-standing nuclear stocks in a single package, including:

VanEck also holds each of our picks above, except for Ur-Energy, creating a well-rounded slice of the nuclear energy as a whole:

• NANO Nuclear: 1.6% weight

• NuScale Power: 6.8%

• Energy Fuels: 2.1%

• Centrus Energy: 4.1%

Disclosure: Long NLR

More Nuclear Energy Reads:

👉 From AI to Nukes: Here’s What’s in the UK’s Big Defense Overhaul

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A nice synergy with last week’s Monday MegaTrend, this article highlights international nuclear emphases with a defense tech spin. Increased interest across the pond in building out atomic deterrence would have an impact on upstream uranium suppliers.

While not stated, the UK’s energy and heating troubles in recent years, sparked by the Eastern European conflict, also make nuclear energy a long-term potential play for the Brits (more on this below!).

👉 In Small Nuclear Reactors, There’s One Clear Leader Today

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This Barron’s article adds a bit more texture to the SMR thesis. While it mentions small-cap picks like NuScale, Oklo, and Nano Nuclear, its core thrust is that GE Vernova Hitachi is the strongest pick in the SMR sector based on its construction lead in Canada (one of four planned reactors is in development outside of Toronto).

Rhyming with our previous read, GE Vernova Hitachi is also a finalist in the “Great British Nuclear SMR” competition designed to spur SMR expansion in the region. Domestically, the Tennessee Valley Authority is also planning on deploying a BWRX-300 SMR at one of its regional sites, which admittedly does make GEV likely the best large-cap SMR pick (but this is a small-cap stock newsletter!).

👉 11 Big Wins for Nuclear in Trump Administration’s First 100 Days

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A DoE publication, this piece admittedly has its own agenda and spin. Still, highlighting near-term trends, including SMRs, plant reopenings, and HALEU commitments, the article serves as a good jumping-off point for recent and ongoing nuclear tailwinds beyond what we’ve covered here, including nuclear rocketry and molten salt developments.