Bottom Line Up Front: President Trump's aggressive nuclear policy push has triggered massive gains in nuclear stocks, with companies like OKLO and ASPI seeing 20-30% single-day jumps. While the long-term fundamentals support nuclear growth driven by AI energy demands, investors should be cautious of the speculative nature of this rally and the execution risks ahead.
The Presidential Nuclear Push
On May 23, 2025, President Donald Trump signed four sweeping executive orders designed to usher in what the White House calls a "nuclear renaissance." These orders represent the most significant nuclear regulatory reform actions taken in decades, specifically targeting the bottlenecks that have stymied nuclear development for years.
Key Policy Changes:
- Streamlined NRC Process: The Nuclear Regulatory Commission must now issue licensing decisions within 18 months, addressing what Trump called the agency's "risk aversion"
- Federal Land Authorization: Departments of Energy and Defense can now build nuclear reactors on federal property, potentially bypassing traditional regulatory hurdles
- AI Infrastructure Focus: Nuclear reactors powering AI data centers are designated as "critical defense facilities"
- Domestic Uranium Push: Aggressive expansion of U.S. uranium mining and enrichment to reduce foreign dependence
- Bipartisan Foundation: The ADVANCE Act passed the Senate 88-2, showing rare political consensus on nuclear energy
Energy Secretary Chris Wright framed this as "Manhattan Project 2," emphasizing the urgency around AI's unprecedented energy demands.
The Immediate Market Response
Nuclear stocks exploded higher following Trump's orders, with gains reminiscent of meme stock rallies:
Friday's Nuclear Stock Surge:
- Oklo (OKLO): +23.54%
- Nano Nuclear Energy (NNE): +30.29%
- Uranium Energy (UEC): +24.61%
- Centrus Energy (LEU): +20.40%
- NuScale Power (SMR): +19.59%
- Energy Fuels (UUU): +19.1%
Even established players like Constellation Energy, the largest U.S. nuclear operator, gained 2% on the news.
Spotlight on OKLO: The AI-Nuclear Convergence
Company Snapshot:
- Current Price: $48.87 (Market Cap: $6.8B)
- Year-to-Date Return: 113%
- Recent Performance: 30% gain this week alone
OKLO has emerged as the poster child for next-generation nuclear technology, backed by OpenAI CEO Sam Altman (who recently stepped down as chairman to avoid conflicts of interest). The company's Aurora powerhouses represent small modular reactors (SMRs) designed specifically for the AI age.
Key Developments:
- Switch Partnership: Signed a 20-year agreement to supply up to 12 gigawatts of nuclear power to data centers
- Idaho Progress: Completed borehole drilling for site characterization at Idaho National Laboratory
- Timeline: Targeting late 2027 or early 2028 for first power production
- Pipeline: Holds approximately 14 GW in non-binding agreements with data centers and industrial operators
The Reality Check: OKLO generated zero revenue in Q1 2025 and reported an operating loss of $17.9 million, a 142% increase year-over-year. The company remains purely developmental, with commercial operations still years away.
ASP Isotopes (ASPI): The Uranium Enrichment Play
Company Profile:
- Current Price: $8.59 (Market Cap: $477.4M)
- 2024 Revenue: $4.14M (857% increase from 2023)
- Focus: Advanced isotope enrichment technology
ASPI operates in the critical but complex world of uranium enrichment, developing proprietary Aerodynamic Separation Process (ASP) and Quantum Enrichment technologies. The company has strategic significance beyond just power generation.
Strategic Positioning:
- TerraPower Partnership: Signed term sheet with Bill Gates' nuclear company for HALEU (High Assay Low-Enriched Uranium) production
- South African Operations: First Quantum Enrichment facility operational in Pretoria
- Medical Applications: Producing Ytterbium-176 for cancer treatments, addressing critical supply shortages
- National Security Angle: One of few Western suppliers of enriched uranium, reducing dependence on Russian sources
Challenges: The company faced short-seller attacks in late 2024, though management has vigorously defended its operations and partnerships.
The Fundamental Drivers: AI's Insatiable Energy Appetite
The nuclear surge isn't just about political support—it's driven by unprecedented energy demands from artificial intelligence infrastructure.
The Numbers:
- AI Power Requirements: Anthropic estimates 50 gigawatts of new power capacity needed by 2027—equivalent to 50 nuclear plants
- Data Center Growth: U.S. power consumption expected to reach record highs in 2025-2026 after two decades of stagnation
- Tech Company Commitments: Microsoft, Google, and Amazon have all announced major nuclear power agreements
Why Nuclear for AI:
- 24/7 Reliability: Unlike solar and wind, nuclear provides constant baseload power
- Zero Carbon: Meets tech companies' climate commitments
- Scalability: Can provide the massive power requirements data centers demand
- Grid Independence: Co-location possibilities reduce transmission constraints
Market Reality Check: Separating Hype from Fundamentals
While the long-term nuclear story is compelling, the current market euphoria raises red flags for prudent investors.
Warning Signs:
- Speculative Nature: Most gains are based on executive orders and promises, not operational improvements
- Pre-Revenue Companies: Many nuclear stocks generate little to no revenue, trading on future potential
- Historical Volatility: Nuclear stocks have experienced multiple boom-bust cycles over decades
- Execution Risk: Building nuclear facilities involves massive capital requirements, regulatory hurdles, and construction delays
The Motley Fool's Travis Hoium captured the skepticism: "The bounce is almost entirely built on speculation because most of these companies are either very low revenue or pre-revenue... This isn't the first time the nuclear industry has gone through hype cycles."
Is This Rally Sustainable?
Bull Case Arguments:
- Bipartisan Support: Rare political consensus on nuclear energy's strategic importance
- AI Megatrend: Structural demand growth from data centers and AI infrastructure
- Energy Security: Reducing dependence on foreign uranium supplies
- Climate Goals: Nuclear as essential bridge to carbon-free energy
- Regulatory Reform: Streamlined approval processes could accelerate deployment
Bear Case Concerns:
- Valuation Disconnect: Stock prices far ahead of fundamental progress
- Construction Challenges: Nuclear projects historically face delays and cost overruns
- Competition: Natural gas and renewables plus storage remain cheaper alternatives
- Regulatory Reality: Even with reforms, nuclear licensing remains complex and time-consuming
- Capital Intensity: Massive funding requirements for actual reactor construction
Investment Implications: A Cautious Approach
The nuclear rally presents both opportunity and risk for investors. While the fundamental drivers—AI energy demand, energy security concerns, and climate goals—are real and lasting, the current stock prices appear to be pricing in best-case scenarios.
For Conservative Investors:
Consider established players like Constellation Energy or Cameco that have existing operations and revenue streams, rather than pure-play development companies.
For Growth Investors:
OKLO and ASPI offer exposure to cutting-edge nuclear technology, but with significant execution risk. Position sizing should reflect the speculative nature of these investments.
Timing Considerations:
The current surge appears driven more by policy announcements than operational progress. Historical patterns suggest nuclear stocks often give back dramatic gains when reality sets in.
The Verdict: Short-Term Surge, Long-Term Potential
Trump's nuclear executive orders have created genuine momentum for an industry that has struggled for decades. The combination of AI-driven energy demand, bipartisan political support, and regulatory reform creates a more favorable environment than nuclear has seen in years.
However, the 20-30% single-day gains in nuclear stocks reflect speculative enthusiasm more than fundamental improvements. While companies like OKLO and ASPI are positioned to benefit from the nuclear renaissance, investors should expect significant volatility as the gap between promise and performance plays out over the coming years.
The nuclear story is compelling, but success will ultimately depend on execution—building actual reactors, generating real revenue, and proving these technologies can scale economically. Until then, this remains a sector where hope trades ahead of reality.
Investment Takeaway: The nuclear renaissance is real, but the current rally appears to be getting ahead of itself. Investors should consider the sector's long-term potential while remaining mindful of near-term volatility and execution risks.
