AI's Demand for Energy Drives Nuclear ETFs to Record Levels
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 22 2025
0mins
Source: Benzinga
Nuclear ETFs Surge: Nuclear-themed ETFs, such as the VanEck Uranium+Nuclear Energy ETF (NLR) and the Range Nuclear Renaissance Index ETF (NUKZ), have seen significant gains, with NLR reaching an all-time high and both ETFs up over 100% from their lows, reflecting a growing investor interest in nuclear energy's role in the AI revolution.
Market Potential and Policy Support: A Bank of America report highlights a potential $10 trillion market opportunity for nuclear energy by 2050, driven by increased demand for reliable energy sources. Policy support from the Trump administration and revised growth expectations from the International Atomic Energy Agency (IAEA) further bolster the sector's outlook.
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Analyst Views on SMR
Wall Street analysts forecast SMR stock price to rise
13 Analyst Rating
5 Buy
6 Hold
2 Sell
Hold
Current: 12.220
Low
18.50
Averages
32.77
High
60.00
Current: 12.220
Low
18.50
Averages
32.77
High
60.00
About SMR
NuScale Power Corporation is a provider of proprietary advanced small modular reactor (SMR) nuclear technology. The NuScale Power Module, the Company's SMR technology, is a small pressurized water reactor that can generate approximately 77 megawatts of electricity (MWe) or 250 megawatts thermal (gross) and can be scaled to meet customer needs through an array of flexible configurations of up to 924 MWe (12 modules) of output. In addition to the sale of NPMs, it offers a diversified suite of services throughout the development and operating life of the power plant. The Company's suite of services is planned to include licensing support, testing, training, fuel supply services and program management, among others. It serves a range of customers consisting of domestic and international governments, utilities, state-owned enterprises and technology and industrial companies in need of carbon-free, reliable energy.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
NuScale Power: A Unique Opportunity in Nuclear Energy Investment
- Nuclear Market Potential: The nuclear energy market is projected to reach $10 trillion over the next few decades, primarily driven by the global build-out of data center infrastructure, positioning NuScale Power as a pioneer in small modular reactors to capitalize on this trend.
- Energy Demand from Data Centers: The pace of global data center construction is unprecedented, with spending expected to reach $7 trillion by 2030, making NuScale's nuclear solutions particularly relevant due to their rapid construction capabilities to meet the urgent energy needs of AI technologies.
- Low-Carbon Power Advantage: NuScale's small modular reactors require refueling every 3 to 7 years and emit very little carbon, aligning with major tech companies' commitments to reduce their carbon footprints, thus becoming an ideal choice for sustainable energy.
- Future Growth Potential: Although NuScale has yet to bring its first system online, it is expected to enter a strong growth phase once construction begins, especially against the backdrop of rising global demand for clean energy.
See More
ExxonMobil's Stock Soars 24% Amid Oil Price Surge
- Outstanding Stock Performance: As of 2026, ExxonMobil's stock has surged by 24%, significantly outpacing the S&P 500's 10% gain, reflecting strong investor confidence and the company's robust performance in the energy market amid rising oil prices.
- Market Sentiment Influence: While ExxonMobil's stock price is directly impacted by rising oil prices, market sentiment also drives short-term price fluctuations, particularly as geopolitical conflicts in the Middle East disrupt supply, enhancing investor expectations for future financial results.
- Supply Shortage Impact: Global energy supply shortages are not fully reflected in oil prices, with industry executives warning that a return to normalcy could take months, suggesting that even after the conflict ends, oil prices may remain elevated, supporting ExxonMobil's stock price.
- Optimistic Future Outlook: Given the fundamentals of the oil market, it is expected that oil prices will remain high even after the Middle East conflict concludes, positioning ExxonMobil as a likely bigger winner in 2026 unless the S&P 500 rises significantly to close the performance gap.
See More
Middle East Conflict Drives Oil Prices Up
- Oil Price Surge: The geopolitical conflict in the Middle East has led to supply shortages, driving global energy prices higher, with ExxonMobil's stock rising 24% in 2026, significantly outperforming the S&P 500's 10% gain, indicating strong market performance.
- Investor Sentiment Drive: As one of the world's largest energy companies, ExxonMobil benefits from investor optimism regarding its future financial results; however, market volatility may lead to price corrections, yet its stock is likely to remain elevated in the short term.
- Supply Chain Complexity: Energy executives warn that current supply shortages are not fully reflected in oil prices, and returning to normalcy could take months, suggesting that ExxonMobil's stock has further upside potential, especially after the Middle East conflict concludes.
- Market Outlook: While oil prices may initially dip post-conflict, industry fundamentals indicate that prices could remain high, and unless the S&P 500 rises significantly, ExxonMobil is poised to continue outperforming the market in 2026.
See More
NuScale Power: Unique Opportunity in Nuclear Energy Market
- Nuclear Market Potential: Experts predict that the nuclear energy market could reach $10 trillion over the next few decades, primarily driven by the global build-out of data center infrastructure, presenting a unique opportunity for NuScale Power.
- Data Center Energy Demand: The pace of global data center construction is unprecedented, with spending expected to reach $7 trillion by 2030, creating an urgent need for new energy sources to meet the demands of AI technologies.
- Small Modular Reactor Advantages: NuScale is the first company to receive approval from the Nuclear Regulatory Commission for a small modular reactor, which can be built faster and cheaper than conventional plants and offers the option to expand generation capacity in the future.
- Low-Carbon Power Solution: SMRs require refueling every 3 to 7 years and emit very little carbon, aligning with major tech companies' commitments to reduce their carbon footprints, making them a reliable power source for the AI and data center industries.
See More
NuScale vs. Oklo: A Comparison of Nuclear Energy Investment Prospects
- NuScale's Market Positioning: NuScale Power focuses on developing small modular reactor technology targeting markets like data centers and desalination plants; although it hasn't commercialized yet, it holds $341 million in cash and short-term investments, indicating financial stability.
- Oklo's Business Model: Oklo is building fast-fission power plants and has secured prepayment agreements with Meta and Equinix, demonstrating its appeal to high-demand users, while boasting over $2 billion in cash, providing robust support for future growth.
- Risk Analysis: NuScale faces risks from not having signed binding contracts, leading to uncertain future revenues, and must compete against large state-owned enterprises, while Oklo encounters complex challenges in construction and regulatory approvals, with both companies yet to achieve profitability.
- Valuation Comparison: NuScale's forward P/E ratio stands at 141.6x, reflecting its non-profitable status, while Oklo is valued based on future earnings estimates, showcasing market confidence in its potential.
See More
Analysis of Small Modular Reactor Market Competition
- Market Positioning Differences: NuScale Power is the only small modular reactor design to receive U.S. regulatory certification, focusing on providing carbon-free electricity to traditional utilities and industrial clients, while Oklo targets high-demand users like data centers through fast-fission plants and a unique fuel recycling business model, highlighting significant differences in their market positioning.
- Financial Comparison: NuScale ended the first quarter with $341 million in cash and cash equivalents and $836 million in short-term investments, facing milestone payment risks with ENTRA1 Energy despite not yet commercializing; in contrast, Oklo boasts over $2 billion in cash reserves, showcasing greater financial flexibility, although both companies are pre-revenue.
- Impact of Partnerships: Oklo has secured prepayment agreements with major tech firms like Meta Platforms and Equinix, along with a master power agreement with Switch for 12 GW of capacity, enhancing market confidence; in comparison, NuScale's commercialization partnerships are more limited, increasing uncertainty about its future revenue.
- Technological Progress and Challenges: Oklo aims to achieve criticality at its Groves Isotope Test Reactor in Texas by July 4 and is making strides in nuclear fuel recycling, demonstrating its technological edge; meanwhile, NuScale faces competition from large state-supported entities like China National Nuclear Corporation and risks regarding the competitiveness of its electricity costs.
See More
NuScale Power: A Unique Opportunity in Nuclear Energy Investment
- Nuclear Market Potential: The nuclear energy market is projected to reach $10 trillion over the next few decades, primarily driven by the global build-out of data center infrastructure, positioning NuScale Power as a pioneer in small modular reactors to capitalize on this trend.
- Energy Demand from Data Centers: The pace of global data center construction is unprecedented, with spending expected to reach $7 trillion by 2030, making NuScale's nuclear solutions particularly relevant due to their rapid construction capabilities to meet the urgent energy needs of AI technologies.
- Low-Carbon Power Advantage: NuScale's small modular reactors require refueling every 3 to 7 years and emit very little carbon, aligning with major tech companies' commitments to reduce their carbon footprints, thus becoming an ideal choice for sustainable energy.
- Future Growth Potential: Although NuScale has yet to bring its first system online, it is expected to enter a strong growth phase once construction begins, especially against the backdrop of rising global demand for clean energy.
See More
ExxonMobil's Stock Soars 24% Amid Oil Price Surge
- Outstanding Stock Performance: As of 2026, ExxonMobil's stock has surged by 24%, significantly outpacing the S&P 500's 10% gain, reflecting strong investor confidence and the company's robust performance in the energy market amid rising oil prices.
- Market Sentiment Influence: While ExxonMobil's stock price is directly impacted by rising oil prices, market sentiment also drives short-term price fluctuations, particularly as geopolitical conflicts in the Middle East disrupt supply, enhancing investor expectations for future financial results.
- Supply Shortage Impact: Global energy supply shortages are not fully reflected in oil prices, with industry executives warning that a return to normalcy could take months, suggesting that even after the conflict ends, oil prices may remain elevated, supporting ExxonMobil's stock price.
- Optimistic Future Outlook: Given the fundamentals of the oil market, it is expected that oil prices will remain high even after the Middle East conflict concludes, positioning ExxonMobil as a likely bigger winner in 2026 unless the S&P 500 rises significantly to close the performance gap.
See More
Middle East Conflict Drives Oil Prices Up
- Oil Price Surge: The geopolitical conflict in the Middle East has led to supply shortages, driving global energy prices higher, with ExxonMobil's stock rising 24% in 2026, significantly outperforming the S&P 500's 10% gain, indicating strong market performance.
- Investor Sentiment Drive: As one of the world's largest energy companies, ExxonMobil benefits from investor optimism regarding its future financial results; however, market volatility may lead to price corrections, yet its stock is likely to remain elevated in the short term.
- Supply Chain Complexity: Energy executives warn that current supply shortages are not fully reflected in oil prices, and returning to normalcy could take months, suggesting that ExxonMobil's stock has further upside potential, especially after the Middle East conflict concludes.
- Market Outlook: While oil prices may initially dip post-conflict, industry fundamentals indicate that prices could remain high, and unless the S&P 500 rises significantly, ExxonMobil is poised to continue outperforming the market in 2026.
See More
NuScale Power: Unique Opportunity in Nuclear Energy Market
- Nuclear Market Potential: Experts predict that the nuclear energy market could reach $10 trillion over the next few decades, primarily driven by the global build-out of data center infrastructure, presenting a unique opportunity for NuScale Power.
- Data Center Energy Demand: The pace of global data center construction is unprecedented, with spending expected to reach $7 trillion by 2030, creating an urgent need for new energy sources to meet the demands of AI technologies.
- Small Modular Reactor Advantages: NuScale is the first company to receive approval from the Nuclear Regulatory Commission for a small modular reactor, which can be built faster and cheaper than conventional plants and offers the option to expand generation capacity in the future.
- Low-Carbon Power Solution: SMRs require refueling every 3 to 7 years and emit very little carbon, aligning with major tech companies' commitments to reduce their carbon footprints, making them a reliable power source for the AI and data center industries.
See More
NuScale vs. Oklo: A Comparison of Nuclear Energy Investment Prospects
- NuScale's Market Positioning: NuScale Power focuses on developing small modular reactor technology targeting markets like data centers and desalination plants; although it hasn't commercialized yet, it holds $341 million in cash and short-term investments, indicating financial stability.
- Oklo's Business Model: Oklo is building fast-fission power plants and has secured prepayment agreements with Meta and Equinix, demonstrating its appeal to high-demand users, while boasting over $2 billion in cash, providing robust support for future growth.
- Risk Analysis: NuScale faces risks from not having signed binding contracts, leading to uncertain future revenues, and must compete against large state-owned enterprises, while Oklo encounters complex challenges in construction and regulatory approvals, with both companies yet to achieve profitability.
- Valuation Comparison: NuScale's forward P/E ratio stands at 141.6x, reflecting its non-profitable status, while Oklo is valued based on future earnings estimates, showcasing market confidence in its potential.
See More
Analysis of Small Modular Reactor Market Competition
- Market Positioning Differences: NuScale Power is the only small modular reactor design to receive U.S. regulatory certification, focusing on providing carbon-free electricity to traditional utilities and industrial clients, while Oklo targets high-demand users like data centers through fast-fission plants and a unique fuel recycling business model, highlighting significant differences in their market positioning.
- Financial Comparison: NuScale ended the first quarter with $341 million in cash and cash equivalents and $836 million in short-term investments, facing milestone payment risks with ENTRA1 Energy despite not yet commercializing; in contrast, Oklo boasts over $2 billion in cash reserves, showcasing greater financial flexibility, although both companies are pre-revenue.
- Impact of Partnerships: Oklo has secured prepayment agreements with major tech firms like Meta Platforms and Equinix, along with a master power agreement with Switch for 12 GW of capacity, enhancing market confidence; in comparison, NuScale's commercialization partnerships are more limited, increasing uncertainty about its future revenue.
- Technological Progress and Challenges: Oklo aims to achieve criticality at its Groves Isotope Test Reactor in Texas by July 4 and is making strides in nuclear fuel recycling, demonstrating its technological edge; meanwhile, NuScale faces competition from large state-supported entities like China National Nuclear Corporation and risks regarding the competitiveness of its electricity costs.
See More
