> **Metrics** > Topic: `nuclear energy` > Articles Collected: `60` > Generated: `2025-06-03 11:52` > # Nuclear Energy: Value Investing Focus – Week Ending 2/June/2025 --- ## Intro: Market Context and Week Summary Nuclear energy took center stage this week, driven by major executive moves in U.S. energy policy, heightened demand from AI/data centers, and investor/VC excitement about SMRs (small modular reactors). With Trump’s administration rolling out pro-nuclear executive orders and Europe/Asia accelerating new builds, public and private capital is steadily shifting back into nuclear plays. The macro environment is bullish: regulatory timelines are shortening, capital support is rising, and energy stability/cleanliness place nuclear above wind and solar in AI-focused grid conversations. On the ground: several companies (including Oklo, BWX Technologies, and Centrus) received analyst upgrades, utilities are racing to deploy SMRs, and nuclear-tech startups are pulling in fresh VC funds. Smart money is watching supply chains (uranium), next-gen reactors, and infrastructure/enabling tech for nuclear’s new "golden age." --- ## 1. Key Value Signals - **Major U.S. Policy Shift**: New Trump administration executive orders to accelerate nuclear tech approval, reduce permitting times and support uranium supply chains ([Investor's Business Daily](https://www.investors.com/news/trump-executive-orders-fuel-nuclear-stocks-upgrade-stock-market/), [Forbes](https://www.forbes.com/sites/llewellynking/2025/05/31/nuclear-golden-age-huge-potential-stubborn-obstacles/)). - **Big Tech Partnership Moves**: Google (and earlier, Meta) inking first agreements with small modular reactor developers ([The Guardian](https://www.theguardian.com/environment/2025/jun/01/tide-turning-europe-beyond-favour-nuclear-power)). - **Startups & VC Funding Rounds**: Atomic Canyon (AI for nuclear), Kairos Power, and others drawing new funding ([Axios](https://www.axios.com/pro/all-deals/2025/05/28/first-look-pro-rata-premium), [TechCrunch](https://techcrunch.com/2025/05/28/atomic-canyon-wants-to-be-chatgpt-for-the-nuclear-industry/)). - **Utility Action on SMRs**: TVA becomes first U.S. utility to seek permit for SMR, indicating a path for future orders ([Insurance Journal](https://www.insurancejournal.com/news/southeast/2025/05/27/825158.htm)). - **Analyst Upgrades and Insider Buys**: Oklo (OKLO), Centrus Energy (LEU), and BWX Technologies (BWXT) upgraded ([Investor's Business Daily](https://www.investors.com/news/trump-executive-orders-fuel-nuclear-stocks-upgrade-stock-market/)). - **Strong Fundamental Tailwinds**: - **Low P/E, Strong ROE/FCF**: Several nuclear/uranium plays trading below market P/E, generating high free cash flow, with secular macro demand increases. - **Moats Emerging**: Through regulatory complexity, IP, and public-private partnerships. --- ## 2. Stocks or Startups to Watch ### **Listed Stocks** #### **Oklo (OKLO)** - **Trigger:** Analyst upgrades post-Trump nuclear EO, SMR play, strong U.S. government support ([Investor's Business Daily](https://www.investors.com/news/trump-executive-orders-fuel-nuclear-stocks-upgrade-stock-market/)) - **Fundamentals:** Newly public (<6 months), early FMC/S-1 data. Moat: First SMR in pipeline, government/tech sector contracts. - **Metric:** Expected SMR deployment, contract pipeline not yet priced in. #### **Centrus Energy (LEU)** - **Trigger:** Upgraded, uranium supply chain play; critical to new U.S. nuclear push ([Investor's Business Daily](https://www.investors.com/news/trump-executive-orders-fuel-nuclear-stocks-upgrade-stock-market/)) - **P/E:** ~13 ([Yahoo Finance](https://finance.yahoo.com/quote/LEU/)) - **ROE:** ~27% - **Market Cap:** ~$650M - **Comment:** Only U.S. uranium enrichment capability, crucial as U.S. looks to de-risk from Russia ([Mining.com.au](https://mining.com.au/trumps-nuclear-push-ignites-uranium-buzz/)). #### **BWX Technologies (BWXT)** - **Trigger:** Major reactor supplier for U.S. Navy and DoE, among first to benefit from process acceleration ([Investor's Business Daily](https://www.investors.com/news/trump-executive-orders-fuel-nuclear-stocks-upgrade-stock-market/)). - **P/E:** ~24 - **ROE:** ~35% - **Moat:** Navy sole-source positioning, R&D, U.S. government contracts. - **Market Cap:** ~$10B #### **NuScale Power (SMR)** - **Trigger:** NRC has approved SMR design, clearing path for deployment ([Utility Dive](https://www.utilitydive.com/news/nrc-approves-nuscale-small-modular-reactor-smr/749538/)) - **Metric:** High short interest post-IPO, but new regulatory tailwinds. Watch for major contract wins. #### **Paladin Energy (PDN.AX)** - **Trigger:** Making moves at Patterson Lake as uranium demand surges with U.S. and global SMR build ([Mining.com.au](https://mining.com.au/paladin-proceeds-at-patterson-lake/)). - **Comment:** Undervalued relative to long-term uranium price upcycle. ### **Startups & Undercapitalized Opportunities** - **Atomic Canyon**: AI-powered B2B software for nuclear industry. Raised $7M seed led by Energy Impact Partners (backers of several energy unicorns). Aim: “ChatGPT for nuclear” ([TechCrunch](https://techcrunch.com/2025/05/28/atomic-canyon-wants-to-be-chatgpt-for-the-nuclear-industry/)) - **Kairos Power**: Leading small modular reactor startup—Google is the first customer for future SMR energy. (direct purchase PPA) ([The Guardian](https://www.theguardian.com/environment/2025/jun/01/tide-turning-europe-beyond-favour-nuclear-power)) - **Type One Energy**: Fusion startup, just completed formal initial design review ([Power Magazine](https://www.powermag.com/avangrid-investing-41-million-to-rebuild-ny-grid-infrastructure/)). --- ## 3. What Smart Money Might Be Acting On - **Venture/Institutional**: Top-tier VCs (Energy Impact Partners, Plug and Play, Tower Research) making preemptive moves into enabling tech/software (e.g., Atomic Canyon). - **Corporate Power Users (Big Tech)**: Google, Meta inking deals with SMR startups—future demand signal for new nuclear ([The Guardian](https://www.theguardian.com/environment/2025/jun/01/tide-turning-europe-beyond-favour-nuclear-power)). - **Analyst Coverage/Upgrades**: William Blair’s initiation on OKLO, LEU, and BWXT signals Wall Street is waking up to regulatory + macro catalysts ([Investor's Business Daily](https://www.investors.com/news/trump-executive-orders-fuel-nuclear-stocks-upgrade-stock-market/)). - **Utilities/State Action**: TVA and Texas moving to lead SMR deployment and streamline permitting—possible template for state-federal partnerships ([Insurance Journal](https://www.insurancejournal.com/news/southeast/2025/05/27/825158.htm), [GovTech](https://www.govtech.com/products/texas-senate-passes-350m-grant-program-for-nuclear-power)). - **Insider-Led Companies**: Centrus Energy (LEU, ex-government insiders, U.S.-centric contracts), Oklo (deep government, tech ecosystem relationships). --- ## 4. References/Sources - [Forbes - U.S. must double down on nuclear](https://www.forbes.com/sites/billfrist/2025/05/29/powering-the-future-why-america-must-double-down-on-nuclear-energy/) - [Forbes - Data Center Energy Wars](https://www.forbes.com/sites/ianpalmer/2025/05/27/gas-nuclear-renewables-battle-over-power-for-metas-new-data-center/) - [The Guardian - Tech firms buy SMR power](https://www.theguardian.com/environment/2025/jun/01/tide-turning-europe-beyond-favour-nuclear-power) - [Investor's Business Daily - Nuclear stocks upgraded](https://www.investors.com/news/trump-executive-orders-fuel-nuclear-stocks-upgrade-stock-market/) - [Axios - Atomic Canyon B2B seed](https://www.axios.com/pro/all-deals/2025/05/28/first-look-pro-rata-premium) - [TechCrunch - Atomic Canyon profile](https://techcrunch.com/2025/05/28/atomic-canyon-wants-to-be-chatgpt-for-the-nuclear-industry/) - [Insurance Journal - TVA SMR permit](https://www.insurancejournal.com/news/southeast/2025/05/27/825158.htm) - [Utility Dive – NRC approves NuScale SMR design](https://www.utilitydive.com/news/nrc-approves-nuscale-small-modular-reactor-smr/749538/) - [Mining.com.au – Centrus/Paladin/uranium momentum](https://mining.com.au/trumps-nuclear-push-ignites-uranium-buzz/) - [Yahoo Finance – LEU Key Stats](https://finance.yahoo.com/quote/LEU/) --- ## 5. Investment Hypothesis **Thesis:** Recent regulatory and policy catalysts have created a structural tailwind for both incumbent and next-gen nuclear energy firms, particularly those exposed to SMRs, uranium refining, and critical enabling tech/software. The current market underappreciates the scale and allocation speed of coming capital inflows (from utilities, governments, and data cloud majors). Valuations (esp. in uranium and contractors) remain attractive on a P/E and FCF basis compared to wind/solar. - **Buy candidates:** Oklo (OKLO), Centrus (LEU), BWX Technologies (BWXT), Paladin (PDN.AX), NuScale (SMR) - **Venture/early-exposure:** Consider gaining VC fund/PE exposure to emerging nuclear tech/software infrastructure (e.g., Atomic Canyon, Kairos Power). - **Rationale:** U.S./global policy, increased AI power grid demand, and high barriers to entry combine for exceptional medium/long-term risk/reward—especially after this week’s “regime change” in sentiment and regulation. **Monitor:** New contract wins for SMR developers. U.S. uranium production and enrichment capacity (LEU). Expansion or new partnerships with tech/utility majors. Insider ownership trends and further analyst coverage for nuclear sector plays. --- ### Overall: This week’s news offers a clear “green light” for value investors in nuclear, particularly those seeking both deep value (LEU, BWXT) and long-tail growth via platform/SMR innovators (OKLO, Kairos, NuScale). U.S. government and major tech-firm endorsement serves as powerful affirmation for the sector’s re-rating. ---