Nuclear Stocks Not Immune To AI-Led Stock Market Retreat

Published: Friday, August 22, 2025 at 12:25 pm

Nuclear Stocks Face Headwinds Amid AI-Driven Market Pause

Nuclear-related stocks experienced a downturn this week, mirroring a broader consolidation in the AI-dominated stock market. Several companies, including Palantir Technologies, saw declines. Major players in the S&P 500, such as Constellation Energy and Vistra, faced losses for the week and the month of August.

Small modular reactor (SMR) technology companies, which have attracted significant investment, also suffered notable setbacks. Oklo, backed by OpenAI's CEO, and NuScale Power saw substantial drops for the week and month. Nano Nuclear Energy experienced a significant decrease before Friday's market opening.

This week, analysts adjusted their outlook on several nuclear stocks. Ladenburg downgraded Nano Nuclear Energy to sell, citing concerns about the company's strategy and missed timelines. UBS initiated coverage of Oklo with a neutral rating, expressing cautious optimism about the potential for nuclear infrastructure growth but highlighting risks. Melius Research initiated coverage of Constellation Energy and Vistra with buy designations, citing the transformative impact of AI on the energy sector. Bank of America initiated coverage of NuScale Power with a neutral rating, acknowledging its de-risked fuel pathway but noting its early commercialization stage.

Other nuclear-related companies, including BWX Technologies, Centrus Energy, and Cameco, also saw declines. These companies had previously experienced gains following strong earnings reports.

The market's direction on Friday could be influenced by the tone of the Federal Reserve Chair Jerome Powell's speech at the Jackson Hole economic symposium.

BNN's Perspective: The recent downturn in nuclear stocks, while concerning, appears to be tied to broader market trends and sector-specific developments. The long-term potential of nuclear energy, particularly in the context of AI-driven energy demands, remains significant. Investors should carefully consider the varying risk profiles of different companies within the sector and the evolving regulatory landscape.

Keywords: Nuclear Stocks, AI, Stock Market, SMR, Constellation Energy, Vistra, Oklo, NuScale Power, Nano Nuclear Energy, Ladenburg, UBS, Melius Research, Bank of America, BWX Technologies, Centrus Energy, Cameco, Jerome Powell, Federal Reserve, Energy Stocks, Investing, Market Analysis

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