Trump Orders Nuclear Overhaul: These 3 Stocks Stand to Benefit

Nuclear stocks surged following President Trump's executive orders to expedite nuclear energy site development, driven by increasing energy demand from AI data centers, supportive regulatory policies, and advancements in small modular reactor (SMR) technology. The International Energy Agency projects record nuclear output in 2025, with tech companies like Google and Microsoft investing in nuclear power. NuScale Power (SMR), Cameco Corp (CCJ), and BWX Technologies (BWXT) are highlighted as potential beneficiaries, with NuScale rising 19% after Trump's announcement and analysts giving Cameco a Buy rating with a $70.53 price target.

Analysis

Recent executive orders aimed at accelerating U.S. nuclear energy site development, including reducing licensing approval times to 18 months and permitting new construction on federal land, have significantly propelled nuclear stocks. This sector revival is underpinned by robust tailwinds: surging electricity demand, notably from AI data centers, evidenced by Google's deal with Elementl Power for three new sites by 2035 and Microsoft's 20-year partnership with Constellation Energy which includes reopening Three Mile Island. The International Energy Agency forecasts record nuclear output in 2025, with tech firms potentially adding 30 gigawatts of nuclear capacity over the next decade. Globally, a supportive regulatory environment is emerging, with the UN's COP28 aiming to triple nuclear energy output by 2050 and countries like South Korea, China, and the U.K. advancing their own production initiatives. Technological progress, particularly in Small Modular Reactors (SMRs) offering scalable and more cost-effective solutions, is a key enabler. NuScale Power (NYSE: SMR), the sole U.S. SMR design approved by the Nuclear Regulatory Commission, saw its stock jump over 19% post-announcement, now up over 60% YTD, buoyed by a recent earnings beat on May 12 and a 2-gigawatt supply agreement for data centers. Cameco Corp. (NYSE: CCJ), the world's largest uranium producer, gained 10% on the news, with Goldman Sachs initiating a Buy rating and a $70.53 price target, reflecting anticipated demand despite a Q1 earnings miss. BWX Technologies (NYSE: BWXT), a crucial component supplier, reported strong Q1 results, including double-digit year-over-year revenue growth and a 14% rise in government operations revenue, with its shares recently crossing the 200-day moving average and analysts holding a consensus Buy rating, including Maxim Group's $136 price target.

Key Decisions for Investors

• The confluence of strong demand from AI, favorable regulatory shifts globally, and SMR technology advancements presents a compelling long-term investment case for the nuclear energy sector, though investors should note many projects have extended timelines to completion.
• Consider exposure to companies with distinct roles in the nuclear value chain, such as NuScale Power for its leading SMR technology and recent operational momentum, Cameco for its strategic position in uranium supply, and BWX Technologies as a critical component provider benefitting from increased construction and government contracts.
• Monitor ongoing policy implementations, SMR deployment progress, and the pace of new nuclear project approvals globally, as these will be key determinants of sustained growth and individual stock performance in the sector.