Sector Spotlight: Trump executive order accelerates support for nuclear energy

Welcome to the latest edition of “Sector Spotlight,” where The Fly looks at a new industry every week and highlights its happenings.

NUCLEAR SECTOR NEWS: President Donald Trump signed orders meant to accelerate the construction of nuclear power plants, including small, newer reactor types. “We’re signing tremendous executive orders today that really will make us the real power in this industry,” Trump said as he signed the directives in the Oval Office, adding that nuclear technology “has come a long way, both in safety and costs.” Trump was joined by Interior Secretary Doug Burgum, Defense Secretary Pete Hegseth and energy industry executives including Constellation Energy (CEG) CEO Joseph Dominguez and Jake DeWitte, the co-founder and CEO of Oklo (OKLO).

Nano Nuclear Energy (NNE) announced the launch of a major irradiation testing program in collaboration with the Massachusetts Institute of Technology Department of Nuclear Science and Engineering. The two-year collaboration will investigate the thermal and radiolytic behavior of nitrate molten salts, commonly referred to as “solar salts”, to assess their viability in advanced nuclear energy systems for thermal energy storage and cooling applications. “We are proud to support this world-class irradiation study at MIT,” said Jay Yu, founder and chairman of Nano Nuclear. “Understanding how molten salts perform under radiation is essential to unlocking next-generation reactor designs, and this facility gives us the capabilities to do that without the use of any nuclear materials.”

XL Batteries and Prometheus Hyperscale announced a multi-year agreement to deploy on-site long-duration energy storage systems at data centers. In the first phase of the partnership, XL Batteries will deliver and commission a 333 kilowatt demonstration-scale standalone organic flow battery at Prometheus’ facility in 2027. After that, Prometheus intends to purchase one 12.5 megawatt / 125 megawatt-hour commercial-scale system in 2028 and an additional 12.5 MW / 125 MWh system in 2029. In May of 2024, Prometheus agreed to a deal to buy 100MW of energy from Oklo for its data center planned for farmland in Wyoming.

ANALYST COMMENTARY: Wedbush raised the firm’s price target on Oklo to $55 from $45 and reiterated an Outperform rating on the shares. The firm says that it is highly expected that President Trump will sign executive orders as soon as Friday aiming at jump-starting the nuclear energy industry by easing the regulatory process on approvals for new reactors and strengthening fuel supply chains. The E.O. is expected to be a significant tailwind for the industry, with Oklo being the one of the main beneficiaries as support from the U.S. Government has gained significant traction since the Trump Administration took over in the past few months. The company was on track to submit its former combined license application to the U.S. NRC by the end of 2025 and deploy its first commercial power plant at Idaho National Laboratory by the end of 2027, with this E.O. potentially accelerating the timeline through increased federal funding and a much more streamlined regulatory process.

Goldman Sachs initiated coverage of Nuscale Power (SMR) with a Neutral rating and $24 price target, implying 1% downside from current levels. NuScale is a small modular reactor manufacturing company which will be an “integral player in the global race to decarbonization,” the analyst told investors in a research note. The firm believes Nuscale Power provides investors with an attractive opportunity to invest in a pure play nuclear small modular reactor manufacturer which has first mover advantage. However, citing its new technology, licensing process, “unproven” business model, and financial targets that remain uncertain, Goldman is taking a more balanced view on the stock at current valuation levels.

Additionally, Goldman Sachs assumed coverage of Cameco (CCJ) with a Buy rating and $65 price target. The firm’s view of accelerating nuclear energy growth, driven by existing as well as new reactor builds, in the backdrop of “a relatively modest supply growth environment” positions it to be more bullish on the upstream portion of the value chain, with upstream uranium producers and fuel suppliers like Cameco poised to benefit from increasing demand as well as pricing tailwinds, the analyst noted.

Raymond James lowered the firm’s price target on NexGen Energy (NXE) to C$12 from C$12.50 and keeps an Outperform rating on the shares.

Oklo reported Q1 earnings and provided several key operational updates, including that it completed borehole drilling for site characterization work at Idaho National Laboratory for its first Aurora Powerhouse, B. Riley told investors. The firm noted that OpenAI CEO Sam Altman last month stepped down as chairman of Oklo’s board, and says this move could accelerate Oklo’s ability to work with OpenAI by avoiding a conflict of interest in discussions between the companies. B. Riley sees a potential OpenAI deal as a meaningful positive catalyst for the stock. The firm has a Buy rating and $58 price target on Oklo shares.