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AI Fuels Nuclear Boom: SMRs Surge in 2025
30 Dec
Summary
- Nuclear ETFs like URA surged 72% in 2025 due to AI data center power needs.
- President Trump's executive orders boosted small modular reactors (SMRs).
- Oklo and Nano Nuclear Energy are leading SMR startups with mixed stock performance.
In 2025, the nuclear power sector witnessed an exceptional performance, significantly outpacing the broader market. The Global X Uranium ETF, for instance, delivered a 72% year-to-date return, largely propelled by President Trump's May executive orders aimed at bolstering American nuclear energy production. These initiatives specifically encourage the development of small modular reactors (SMRs), which are crucial for powering burgeoning artificial intelligence (AI) data centers.
This policy shift has ignited substantial market gains for SMR nuclear startups, including Oklo and Nano Nuclear Energy. While Oklo has seen impressive stock growth, its financial future faces scrutiny regarding future capital expenditures. Oklo anticipates its first reactor to become operational in 2027, with profitability projected for 2030 and positive free cash flow by 2033.
Oklo aims to revolutionize nuclear power with its factory-built microreactors utilizing HALEU fuel. The company has secured key permits and applications for advanced reactors and is exploring fuel recycling to reduce foreign uranium reliance. Despite significant cash reserves and low current burn rates, substantial investments are projected for reactor construction and fabrication plants in the coming years.
