Nuclear Investment Analysis Graphic

Nuclear Power Surges as Trump Overhauls Regulations, Tech Giants Sign Power Deals

President's executive orders slash approval times to 18 months; Microsoft, Amazon partnerships signal industry revival

By Science Reporter Updated May 24, 2025

Nuclear power stocks surged Friday after President Donald Trump signed sweeping executive orders to overhaul the industry's regulatory framework, marking the most significant policy shift for atomic energy in decades as artificial intelligence drives unprecedented demand for reliable electricity.

The orders mandate that nuclear reactor licenses be approved within 18 months—down from the current timeline of several years—and direct a "total and complete reform" of the Nuclear Regulatory Commission, the 50-year-old independent agency that oversees the nation's nuclear fleet.

Shares of advanced reactor developer Oklo Inc. jumped 23%, while NuScale Power Corp., the first company to receive regulatory approval for a small modular reactor design, rose 19.6%. Uranium miners also rallied, with Uranium Energy Corp. gaining 24% and Cameco Corp., the world's second-largest uranium producer, climbing 10%.

"Over the last 30 years, we stopped building nuclear reactors in America—that ends now," Trump said during a signing ceremony in the Oval Office. "Today's executive orders are the most significant nuclear regulatory reform actions taken in decades."

The policy overhaul comes as technology companies increasingly turn to nuclear power to meet the enormous electricity demands of artificial intelligence data centers. Microsoft Corp. last year signed a 20-year agreement with Constellation Energy Corp. to restart the shuttered Three Mile Island reactor, while Amazon.com Inc.'s cloud division is partnering with utilities to deploy small modular reactors.

AI Drives Nuclear Revival

The convergence of AI's power hunger and nuclear's reliability is reshaping energy markets. Data centers require 24/7 electricity with near-perfect uptime—a need that intermittent renewable sources like wind and solar struggle to meet without massive battery storage.

"The race to develop power sources and data centers needed for AI is 'Manhattan Project 2,'" Energy Secretary Chris Wright said, referring to the World War II atomic bomb program.

Generative AI's power demands are expected to skyrocket 70% annually, and by 2027 will require electricity equivalent to Spain's entire energy consumption in 2022, according to industry estimates.

Switch, a data center operator, signed an agreement with Oklo for up to 12 gigawatts of advanced nuclear power by 2044—one of the largest corporate clean-energy commitments ever. The deal validates the commercial viability of small modular reactors, which can be built faster and at lower cost than traditional large nuclear plants.

Regulatory Overhaul

Trump's orders represent a philosophical shift away from what administration officials call the NRC's "overly risk-averse culture." The commission will be required to adopt "science-based radiation limits" rather than mandating nuclear facilities emit radiation below naturally occurring levels.

The overhaul could result in staff reductions at the NRC at a time when the agency faces unprecedented workload reviewing reactor restarts and new technology applications. The orders also grant the departments of Energy and Defense authority to build reactors on federal land without traditional permitting delays.

"We're wasting too much time on permitting and we're answering silly questions, not the important ones," said Joseph Dominguez, chief executive of Constellation Energy, who attended Friday's signing ceremony.

Investment Surge

Wall Street is taking notice of nuclear's renaissance. Morgan Stanley Research projects the industry could attract $1.5 trillion in capital investment through 2050 as global nuclear capacity potentially doubles from current levels of about 400 gigawatts.

The International Energy Agency forecasts nuclear investment rising from $65 billion annually today to $120 billion by 2030 in scenarios where climate targets are met. The U.S. aims to expand nuclear capacity from 100 gigawatts today to 400 gigawatts by 2050.

"Our confidence in the AI revolution data center buildout is increasing under the Trump administration, with nuclear energy ultimately playing a key role in powering data centers," Wedbush Securities analysts wrote, raising their price target for Oklo to $55 from $45.

Technology Divergence

The nuclear revival encompasses multiple technology paths. Small modular reactors, championed by companies like NuScale and Oklo, promise shorter construction times and enhanced safety features. Traditional large reactors are also seeing renewed interest, with Constellation planning to restart Three Mile Island's Unit 1 by 2028.

Looking further ahead, thorium reactors offer potential advantages including abundant fuel supplies and reduced radioactive waste. Companies like ThorCon Power and Copenhagen Atomics are advancing commercial designs, though deployment remains a decade away.

Nuclear fusion, long considered the holy grail of clean energy, is attracting unprecedented private investment. Commonwealth Fusion Systems has raised over $2 billion to commercialize tokamak reactors, while Helion Energy signed a power purchase agreement with Microsoft for 2028 delivery.

Supply Chain Challenges

The nuclear resurgence faces significant hurdles. The U.S. currently relies on Russia for about 40% of its enriched uranium, a dependence the Trump administration aims to eliminate through domestic production revival.

Global uranium requirements are expected to reach 190-200 million pounds by 2025, while primary production is likely to fall short by 60-70 million pounds, according to industry consultancy Global X Funds. This supply-demand imbalance is driving uranium prices higher and spurring new mine development.

The skilled workforce needed for nuclear construction has also atrophied during decades of limited new plant construction. The last new U.S. reactors to come online, at Plant Vogtle in Georgia, took seven years longer than planned and cost $18 billion over budget.

Market Implications

Nuclear power's comeback reflects broader shifts in energy policy and technology adoption. While renewable energy sources continue expanding rapidly, their intermittency creates opportunities for nuclear as a carbon-free baseload power source.

The Trump administration's regulatory reforms could accelerate deployment timelines that have historically deterred private investment. Reducing approval times from years to months would significantly improve project economics and attract new capital to the sector.

"Nuclear has the potential to be America's greatest source of energy addition," Wright said. "It works whether the wind is blowing, or the sun is shining, is possible anywhere and at different scales."

Global Competition

The U.S. nuclear revival occurs amid intensifying international competition. China has 24 reactors under construction with plans for 44 more, positioning it to surpass American nuclear capacity by 2030. Russia dominates global reactor exports and uranium enrichment services.

The geopolitical dimension adds urgency to American nuclear development. The Trump administration views domestic nuclear capability as essential for both energy security and maintaining technological leadership in competition with China.

For investors, the nuclear renaissance presents both opportunity and risk. While regulatory reforms and corporate partnerships provide strong tailwinds, the industry's history of cost overruns and construction delays remains a cautionary tale.

The next 18 months will test whether streamlined regulations can translate into accelerated project development, potentially reshaping America's energy landscape for decades to come.

Nuclear Power Industry Investment Analysis Report 2025

Executive Summary

The nuclear power industry is experiencing a transformative period driven by unprecedented regulatory reform, technological advancement, and surging demand from AI data centers. Recent executive orders signed by President Trump on May 23, 2025, mark the most significant nuclear regulatory changes in decades, positioning the sector for substantial growth. Key policy changes include mandating 18-month licensing decisions, overhauling the Nuclear Regulatory Commission, and enabling reactor construction on federal lands.

Bottom Line Up Front: The nuclear sector presents compelling investment opportunities with target capacity expansion from 100 GW today to 400 GW by 2050, supported by streamlined regulations and $1.5 trillion in projected investment through 2050.

Recent Regulatory Developments

Trump Administration Executive Orders

On May 23, 2025, President Trump signed four groundbreaking executive orders that fundamentally reshape the nuclear regulatory landscape:

1. Nuclear Regulatory Commission Reform

Complete overhaul requiring "total and complete reform" of the 50-year-old agency
Mandatory 18-month licensing decisions for new reactors (down from several years)
12-month deadlines for existing reactor operation extensions
Potential staff reductions and organizational restructuring
New White House oversight requiring 90-day review periods for NRC rules

2. Federal Land Development Authority

Authorization for Departments of Energy and Defense to build reactors on federal land
Specific focus on powering defense facilities and AI data centers
Streamlined permitting processes for federal projects

3. Reactor Testing Acceleration

Expedited reactor design testing at DOE national laboratories
Pilot program enabling construction within two years
Enhanced application and review processes

4. Uranium Industrial Base Revival

Domestic uranium mining and enrichment capacity expansion
Reduced dependence on foreign uranium suppliers (previously 40% from Russia)
Strategic uranium reserve development

Policy Impact Assessment

These regulatory changes address longstanding industry pain points, particularly the lengthy approval processes that have historically deterred investment. The shift from a "risk-averse culture" to "science-based radiation limits" signals a fundamental philosophical change in nuclear regulation.

Market Fundamentals and Growth Drivers

Demand Catalysts

AI and Data Center Boom

70% annual growth in AI power demand projected through 2027
By 2027, AI will require electricity equivalent to Spain's entire 2022 consumption
Major tech partnerships: Microsoft-Constellation (Three Mile Island restart), Amazon-Dominion Energy SMR projects

Climate and Energy Security Goals

COP28 commitment to triple nuclear capacity by 2050 (22 countries)
Nuclear provides baseload power complementing intermittent renewables
Energy independence priorities amid geopolitical tensions

Global Capacity Projections

Current global capacity: ~390-400 GW
2030 projection: 650 GW (IEA)
2050 projection: 950 GW-1,000 GW (high case scenario)
US specific goal: 100 GW to 400 GW by 2050

Supply-Demand Dynamics

Investment Requirements

$470 billion needed in China by 2050
$250 billion required in the US by 2050
$197 billion projected for EU by 2050
Annual maintenance costs: $128 billion post-2050

Uranium Market Fundamentals

Current global requirements: 190-200 million pounds by 2025
Primary production shortfall: 60-70 million pounds
Declining secondary supplies from decommissioned weapons
Russia export restrictions creating supply constraints

Technology Landscape

Small Modular Reactors (SMRs)

SMRs represent the future of nuclear deployment with over 80 designs under development:

Key Advantages:

Shorter construction timelines
Lower upfront capital requirements
Enhanced safety features
Scalability for diverse applications

Leading Players:

NuScale Power: First US SMR design certified by NRC
Oklo: 12 GW commitment with Switch data centers
Rolls-Royce: UK government investment decisions expected 2025
GE Hitachi: Advanced reactor development

Next-Generation Technologies

Generation III+ and IV Reactors

Enhanced safety systems
Improved operational efficiency
Advanced fuel cycles
Passive safety features

High-Assay Low-Enriched Uranium (HALEU)

Critical for advanced reactor designs
US developing domestic production capability
Centrus Energy leading HALEU production

Investment Opportunities by Sector

Uranium Mining and Fuel Cycle

Primary Players:

Cameco Corporation (CCJ): World's second-largest uranium miner, 49% Westinghouse ownership
NexGen Energy: Flagship Rook I project in Athabasca Basin
Uranium Energy Corp (UEC): US-focused production, DOE contracts
Energy Fuels (UUUU): Only conventional US uranium mill
Denison Mines: Wheeler River Project advancement

Investment Thesis:

Supply deficit driving price appreciation
Geopolitical supply chain diversification
Strategic stockpile building

Nuclear Utilities and Operators

Market Leaders:

Constellation Energy (CEG): Largest US nuclear fleet operator, Microsoft partnership
Vistra (VST): Significant nuclear generation capacity
Brookfield Renewable Partners (BEP): 51% Westinghouse ownership

Growth Catalysts:

Plant life extensions
Reactor restarts (Three Mile Island, Palisades)
New construction projects

Technology and Equipment

Key Companies:

Westinghouse Electric: ~50% global reactor market share, owned by Cameco-Brookfield JV
GE Vernova (GEV): Nuclear equipment and services
BWX Technologies: Nuclear components manufacturing
NuScale Power (SMR): SMR technology leader

ETF Exposure

Diversified Nuclear Exposure:

Global X Uranium ETF (URA): Broad uranium and nuclear exposure
VanEck Uranium+Nuclear Energy ETF (NLR): Comprehensive sector coverage
Sprott Uranium Miners ETF (URNM): Focus on larger miners
Sprott Junior Uranium Miners ETF (URNJ): Smaller exploration companies

Market Performance Analysis

Recent Stock Performance (May 23, 2025)

Following Trump's executive orders, nuclear stocks experienced significant rallies:

SMR Companies:

Oklo (OKLO): +23.1%
NuScale Power (SMR): +19.6%
Nano Nuclear Energy (NNE): +30%

Uranium Miners:

Uranium Energy (UEC): +24.2%
Energy Fuels (UUUU): +19.6%
Centrus Energy (LEU): +22%
Cameco (CCO): +10%

Utilities:

Constellation Energy (CEG): +2%
Vistra (VST): +1.2%
GE Vernova (GEV): +1.2%

Analyst Sentiment

Wedbush analysts noted the executive orders as "expected to be a significant tailwind for the industry," raising Oklo's price target from $45 to $55. The broader analyst community views the regulatory reforms as removing decades of bureaucratic obstacles.

Risk Assessment

Regulatory and Political Risks

Potential Challenges:

Future administration policy reversals
State-level regulatory conflicts
Public perception concerns
NIMBY (Not In My Backyard) opposition

Mitigation Factors:

Bipartisan support for nuclear energy
National security imperatives
Climate goals alignment

Technology and Execution Risks

SMR Deployment Challenges:

Unproven commercial scalability
Cost reduction requirements
Supply chain development needs
Skilled workforce availability

Traditional Nuclear Risks:

Construction cost overruns (Vogtle precedent)
Extended development timelines
Waste management solutions
Safety and security concerns

Market and Financial Risks

Commodity Price Volatility:

Uranium price fluctuations
Cyclical mining sector dynamics
Geopolitical supply disruptions

Competition Risks:

Renewable energy cost reductions
Natural gas price competition
Battery storage advancement

Investment Recommendations

Near-Term Opportunities (2025-2027)

High Conviction Plays:

Cameco (CCJ): Diversified exposure across fuel cycle, Westinghouse ownership
Constellation Energy (CEG): Immediate beneficiary of restart projects and utility demand
Oklo (OKLO): SMR technology leader with concrete deployment agreements

Moderate Risk/Reward:

NuScale Power (SMR): Regulatory-approved SMR technology
Uranium Energy (UEC): US-focused production with government contracts
Global X Uranium ETF (URA): Diversified sector exposure

Long-Term Strategic Positions (2027-2035)

Technology Winners:

SMR developers with proven deployment capability
Advanced reactor fuel cycle companies
Nuclear automation and digital technology providers

Infrastructure Plays:

Transmission and grid integration companies
Nuclear waste management solutions
Specialized construction and engineering firms

Portfolio Allocation Recommendations

Conservative Approach (3-5% allocation):

40% Established utilities (CEG, VST)
30% Diversified ETFs (URA, NLR)
20% Large uranium miners (CCJ, UEC)
10% SMR leaders (SMR, OKLO)

Aggressive Growth (5-10% allocation):

30% SMR technology companies
25% Uranium miners and fuel cycle
25% Nuclear utilities
20% Emerging technology and services

Market Outlook and Timeline

2025-2026: Regulatory Implementation

NRC reform implementation
First SMR deployments
Reactor restart completions

2027-2030: Scaled Deployment

Commercial SMR operations
New construction starts
Uranium supply response

2030-2035: Market Maturation

Technology cost reductions
Global capacity doubling
Supply chain optimization

2035-2050: Renaissance Realization

400 GW US capacity target approach
Advanced reactor commercialization
Carbon-free grid integration

Conclusion

The nuclear power industry stands at an inflection point, with the most favorable regulatory environment in decades coinciding with unprecedented demand from AI and climate imperatives. The Trump administration's executive orders remove longstanding barriers while setting ambitious capacity targets that require massive investment.

Key Investment Themes:

Regulatory tailwinds providing multi-year growth catalyst
Technology convergence enabling new deployment models
Supply chain bottlenecks creating pricing power
Strategic positioning for energy security and decarbonization

Primary Risks: Execution challenges, cost inflation, and potential policy reversals

Investment Horizon: 3-10 year timeframe optimal for capturing nuclear renaissance

The sector offers compelling risk-adjusted returns for investors positioned in established operators, technology leaders, and fuel cycle participants. Diversified exposure through ETFs provides balanced risk while pure-play positions offer higher upside potential.

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Nuclear power stocks spike after Trump order