Trump's orders to boost nuclear power will benefit these two stocks the most, Goldman says

Goldman Sachs analysts believe Cameco and NuScale are best positioned to benefit from President Trump's recent executive orders aimed at boosting domestic nuclear power. Cameco stands to gain from increased uranium demand and its stake in Westinghouse, while NuScale could benefit if its small modular reactor design is selected for deployment at Department of Energy facilities; however, Goldman has a buy rating on Cameco with an $65 target, but a neutral rating on NuScale with a $24 target, suggesting downside from its current price.

Analysis

Recent executive orders by President Trump, aimed at bolstering the U.S. nuclear power sector, are anticipated by Goldman Sachs to primarily benefit uranium mining firm Cameco and small modular reactor (SMR) developer NuScale. These directives seek to stimulate domestic uranium mining and enrichment, facilitate the deployment of advanced reactors at Defense and Energy Department sites, and mandate an 18-month timeframe for the Nuclear Regulatory Commission (NRC) to approve new reactor licenses. Consequently, Cameco's stock has appreciated nearly 16% and NuScale's by approximately 20% since the announcement. Cameco is positioned to gain from increased uranium demand contingent on U.S. nuclear generation growth and through its 49% stake in reactor developer Westinghouse, whose AP1000 design could be selected for new large-scale U.S. plants, a segment the administration also supports. NuScale's prospects hinge on its SMR design clearing NRC approval and potential selection by the Department of Energy for powering facilities like AI data centers, following a directive to co-locate such infrastructure. Despite these developments, Goldman Sachs assigns a 'Buy' rating to Cameco with a $65 target, implying nearly 11% upside from its $58.69 Friday close. Conversely, NuScale carries a 'Neutral' rating with a $24 target, suggesting a 20% downside from its $30.24 Friday close, indicating that recent market enthusiasm may have outpaced its current valuation according to the bank.

Key Decisions for Investors

• Investors may consider Cameco (CCJ) given the supportive U.S. nuclear policy environment, potential for increased uranium demand, and its strategic stake in Westinghouse, which aligns with Goldman Sachs' 'Buy' rating and $65 price target.
• Exercise caution regarding NuScale (SMR); despite its recent rally and positive long-term policy tailwinds for SMRs, Goldman Sachs' 'Neutral' rating and $24 price target suggest a significant downside from current levels, implying potential overvaluation.
• Closely monitor key developments such as NRC licensing progress for new reactor designs, specific contract awards from the Department of Energy or Defense, and any further policy clarifications, as these will be critical catalysts or risk factors for both companies.