Google Deal Ignites Rally in Pre-Revenue Nuclear Reactor Stocks

Google’s recent nuclear deal with Constellation Energy has sparked a rally in pre-revenue nuclear reactor developers, even though the agreement focuses on upgrading existing reactors. Shares of NANO Nuclear Energy (NASDAQ:NNE) surged 8%, Oklo (NYSE:OKLO) climbed 8%, and NuScale Power (NYSE:SMR) gained 7%, outpacing broader market gains. The Global X Uranium ETF (NYSEARCA:URA) also rose 5%, while the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) increased by just 0.8%.

Google and Constellation Energy’s long-term agreement aims to boost output from operating nuclear reactors, providing more power to the PJM Interconnection grid. This deal has reignited investor interest in small modular reactor developers, despite their reactors being only in the development phase. NANO Nuclear Energy recently appointed a nuclear materials specialist to support its microreactor work, adding to the positive sentiment.

All three companies, Oklo, NuScale Power, and NANO Nuclear Energy, are pre-revenue and valued based on licensing progress and potential future deployments. Oklo’s stock is down 46% year-to-date, NuScale Power has fallen 42%, and NANO Nuclear Energy is off 30%. NuScale Power stands out as the only small modular reactor provider with a design certified by the U.S. Nuclear Regulatory Commission, giving it a regulatory advantage.

Investors should watch for licensing milestones and regulatory progress at each company, as these will be key to sustained growth. While the recent gains are promising, all three stocks remain deep in the red for the year, and caution is advised due to their pre-revenue status and potential volatility.