Nuclear stocks rally as investors snap up shares of reactor developers

Nuclear power stocks surged late last week, underscoring investor interest in a sector expected to help meet AI’s growing demand for electricity, Seeking Alpha reports. Oklo shares closed up around 23% on Friday. Meanwhile, Centrus Energy, NuScale Power, X-Energy, and Nano Nuclear Energy gained 15-17%. Vistra advanced 11%.

Quarterly results from several companies in the sector, particularly Oklo and NuScale Power, drove the rally, writes Seeking Alpha. Oklo, which develops reactors and nuclear fuel recycling technology for off-grid power generation, reported a third-quarter net loss of $41.7 million. The loss was narrower than analysts had expected. Oklo ended September with around $3.13 billion in cash, cash equivalents, and marketable securities to help fund its reactor development plans.

The company also reported progress on Aurora, its first commercial small-scale nuclear power plant, in Idaho. Structural and rebar work is underway at the site, with equipment installation among the next steps. The U.S. Department of Energy has approved the project’s preliminary documented safety analysis.

NuScale Power, which specializes in reactor design, reported a loss of $0.11 per share, also narrower than analysts had expected. The company reported progress toward manufacturing reactor components under an agreement with South Korea’s Doosan Enerbility.

Centrus Energy, the only U.S. commercial supplier of high-assay low-enriched uranium, benefited from both company-specific news and the broader sector rally. The company also recently reported progress in manufacturing centrifuges for uranium enrichment. Third-quarter revenue fell 25.9% year over year to $55.5 million.

Shares of Vistra, a major power producer that operates a fleet of power plants, rose after the company released its results. Third-quarter adjusted EBITDA from ongoing operations reached $2.38 billion, beating the $2.1 billion consensus forecast.

X-Energy, which develops reactors and nuclear fuel with carbon and ceramic coatings, and Nano Nuclear, which develops portable microreactors designed to be transported in shipping containers, also joined the rally. The gains reflected renewed buying across the nuclear power sector, with neither company seeing a catalyst of its own late last week, Seeking Alpha reports.

The rally has underscored investors’ continued interest in nuclear power as tech companies seek reliable electricity supplies for energy-intensive AI data centers, Seeking Alpha writes.

Friday’s rebound followed a difficult week for nuclear and other power stocks after Democrats won control of Congress in the midterm elections Investors worried that changes in energy policy and tighter oversight of data centers could delay projects or drive up costs.