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: 12.180
Low
18.50
Averages
32.77
High
60.00
Current: 12.180
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.
Nuclear Energy Resurgence: U.S. Aims to Quadruple Capacity by 2050
- Surging Nuclear Demand: U.S. lawmakers aim to quadruple nuclear energy capacity by 2050, accelerating the deployment of next-generation reactors to meet rising energy demands, particularly from hyperscale data centers, highlighting nuclear energy's critical role in future energy frameworks.
- Oklo's Technological Innovation: Oklo's Aurora Powerhouse microreactor, designed to deliver between 15 and 75 megawatts using liquid-metal-cooled fast-fission technology, is expected to begin operations by late 2027 or early 2028, catering to industrial clients' needs for reliable baseload power, showcasing significant market potential.
- NuScale's Market Leadership: NuScale Power stands out as the only small modular reactor developer with NRC approval for its 77-megawatt design, with operations on the RoPower project in Romania targeted to start in 2033, demonstrating its competitive edge in the nuclear energy sector.
- GE Vernova's Strategic Positioning: GE Vernova is constructing North America's only commercial small modular reactor in Ontario, expected to be operational by 2029, while its collaboration with TVA will further advance its nuclear projects, enhancing its market position.
See More
Nuclear Energy Technology Resurgence and Investment Opportunities
- Oklo Microreactors: Oklo's Aurora Powerhouse microreactors are designed to utilize used nuclear fuel, providing between 15 to 75 megawatts of power, with operations expected to commence by late 2027 or early 2028, catering to the reliable baseload power needs of industrial and data center customers.
- NuScale's Market Leadership: NuScale is the only small modular reactor developer to receive Standard Design Approval from the U.S. Nuclear Regulatory Commission, with its 77-megawatt design approved in 2025, set to be deployed in the RoPower project in Romania, targeting operational start in 2033.
- GE Vernova's Construction Progress: GE Vernova is actively building the only commercial BWRX-300 small modular reactor in North America at its Ontario site, expected to be operational by 2029, and has secured a $400 million federal grant to accelerate the project's deployment.
- Growing Nuclear Demand: As energy demand rises, U.S. lawmakers aim to quadruple nuclear energy capacity by 2050, accelerating the deployment of small modular reactors and microreactors, indicating a strong resurgence potential in the nuclear energy market.
See More
AI-Driven Nuclear Energy Investment Opportunities
- Massive Market Potential: According to McKinsey's report, global spending on data centers is projected to reach $7 trillion by 2030, highlighting the urgent demand for computing power in the AI sector, thus creating significant market opportunities for energy companies.
- Strategic Advantage of Oklo: Oklo's business model focuses on small modular reactors (SMRs) that can provide reliable baseload electricity to data centers, particularly in remote areas, with its stock rising approximately 200% over the past year, underscoring its importance in meeting AI energy demands.
- NuScale's Competitive Strategy: With a market capitalization of just $4.3 billion, NuScale Power is focused on developing a 6-gigawatt SMR system in partnership with the Tennessee Valley Authority, and despite facing competition from other SMR companies, its undervaluation may present an attractive opportunity for investors.
- Diversified Investment Portfolio: Investing in both Oklo and NuScale offers investors dual pathways to profit from the $7 trillion data center boom, making it particularly important to diversify risk in an uncertain market environment.
See More
NuScale Power Corporation's SMR Stock Investment Thesis
- Market Potential: NuScale Power Corporation focuses on small modular reactor (SMR) technology, targeting approximately 6 GW of capacity by 2030, indicating significant long-term growth potential in the clean, reliable baseload power market.
- Regulatory Advantage: The company has secured U.S. Nuclear Regulatory Commission approval for its light-water SMR design, providing a crucial regulatory edge that distinguishes it as a first mover in the industry.
- Investment Risks and Opportunities: Although NuScale is currently unprofitable with significant cash burn, this reflects the early-stage nature of the nuclear sector, and securing binding power purchase agreements could lead to substantial valuation increases in the future.
- Comparison with AI Stocks: While SMR holds promise, investors may prefer AI stocks that offer higher returns in a shorter timeframe, highlighting a diverse market perspective on investment opportunities.
See More
Fluor Sells NuScale Stake for 326% Profit Amid Nuclear Energy Surge
- Stock Surge: NuScale Power's stock surged to $57 per share over the past year, attracting numerous investors, prompting Fluor, an early investor, to sell its stake at this high valuation to realize profits.
- Significant Sale Proceeds: Fluor sold its 126 million shares of NuScale Power for $2.43 billion in gross proceeds, having initially invested $570 million, achieving a remarkable 326% return on investment, which significantly bolsters the company's financial position.
- Strategic Reinvestment: Fluor plans to use the proceeds from the sale to strengthen its balance sheet, reduce debt, and support its $1.4 billion share repurchase program, while continuing to pursue high-growth opportunities in the nuclear sector.
- Ongoing Partnership: Although Fluor has reduced its equity stake in NuScale, it will remain a preferred engineering, procurement, and construction (EPC) partner, allowing it to participate in NuScale's ongoing development while mitigating equity-owner risks and maintaining service revenue.
See More
Fluor Sells NuScale Stake to Strengthen Financial Position
- Profitable Stake Sale: Fluor realized $2.43 billion in gross proceeds from its sale of NuScale Power shares, achieving a remarkable 326% return on its initial $570 million investment, with plans to use these funds to strengthen its balance sheet and support a $1.4 billion share repurchase program.
- Market Opportunity Seized: By selling its 126 million shares when NuScale's stock surged to $57 per share, Fluor capitalized on a high valuation, providing substantial profits for early investors and demonstrating the company's keen insight into the nuclear energy market.
- Strategic Partnership: Although Fluor has transitioned from a majority owner to a preferred EPC partner for NuScale, it will continue to participate in ongoing developments, ensuring a steady revenue stream while mitigating equity ownership risks.
- Diversified Growth Strategy: Fluor is actively pursuing additional opportunities in conventional nuclear and SMR projects in collaboration with various technology providers, while also expanding into carbon capture, utilization, and storage, as well as hydrogen production, to meet rising infrastructure demands.
See More
Nuclear Energy Resurgence: U.S. Aims to Quadruple Capacity by 2050
- Surging Nuclear Demand: U.S. lawmakers aim to quadruple nuclear energy capacity by 2050, accelerating the deployment of next-generation reactors to meet rising energy demands, particularly from hyperscale data centers, highlighting nuclear energy's critical role in future energy frameworks.
- Oklo's Technological Innovation: Oklo's Aurora Powerhouse microreactor, designed to deliver between 15 and 75 megawatts using liquid-metal-cooled fast-fission technology, is expected to begin operations by late 2027 or early 2028, catering to industrial clients' needs for reliable baseload power, showcasing significant market potential.
- NuScale's Market Leadership: NuScale Power stands out as the only small modular reactor developer with NRC approval for its 77-megawatt design, with operations on the RoPower project in Romania targeted to start in 2033, demonstrating its competitive edge in the nuclear energy sector.
- GE Vernova's Strategic Positioning: GE Vernova is constructing North America's only commercial small modular reactor in Ontario, expected to be operational by 2029, while its collaboration with TVA will further advance its nuclear projects, enhancing its market position.
See More
Nuclear Energy Technology Resurgence and Investment Opportunities
- Oklo Microreactors: Oklo's Aurora Powerhouse microreactors are designed to utilize used nuclear fuel, providing between 15 to 75 megawatts of power, with operations expected to commence by late 2027 or early 2028, catering to the reliable baseload power needs of industrial and data center customers.
- NuScale's Market Leadership: NuScale is the only small modular reactor developer to receive Standard Design Approval from the U.S. Nuclear Regulatory Commission, with its 77-megawatt design approved in 2025, set to be deployed in the RoPower project in Romania, targeting operational start in 2033.
- GE Vernova's Construction Progress: GE Vernova is actively building the only commercial BWRX-300 small modular reactor in North America at its Ontario site, expected to be operational by 2029, and has secured a $400 million federal grant to accelerate the project's deployment.
- Growing Nuclear Demand: As energy demand rises, U.S. lawmakers aim to quadruple nuclear energy capacity by 2050, accelerating the deployment of small modular reactors and microreactors, indicating a strong resurgence potential in the nuclear energy market.
See More
AI-Driven Nuclear Energy Investment Opportunities
- Massive Market Potential: According to McKinsey's report, global spending on data centers is projected to reach $7 trillion by 2030, highlighting the urgent demand for computing power in the AI sector, thus creating significant market opportunities for energy companies.
- Strategic Advantage of Oklo: Oklo's business model focuses on small modular reactors (SMRs) that can provide reliable baseload electricity to data centers, particularly in remote areas, with its stock rising approximately 200% over the past year, underscoring its importance in meeting AI energy demands.
- NuScale's Competitive Strategy: With a market capitalization of just $4.3 billion, NuScale Power is focused on developing a 6-gigawatt SMR system in partnership with the Tennessee Valley Authority, and despite facing competition from other SMR companies, its undervaluation may present an attractive opportunity for investors.
- Diversified Investment Portfolio: Investing in both Oklo and NuScale offers investors dual pathways to profit from the $7 trillion data center boom, making it particularly important to diversify risk in an uncertain market environment.
See More
NuScale Power Corporation's SMR Stock Investment Thesis
- Market Potential: NuScale Power Corporation focuses on small modular reactor (SMR) technology, targeting approximately 6 GW of capacity by 2030, indicating significant long-term growth potential in the clean, reliable baseload power market.
- Regulatory Advantage: The company has secured U.S. Nuclear Regulatory Commission approval for its light-water SMR design, providing a crucial regulatory edge that distinguishes it as a first mover in the industry.
- Investment Risks and Opportunities: Although NuScale is currently unprofitable with significant cash burn, this reflects the early-stage nature of the nuclear sector, and securing binding power purchase agreements could lead to substantial valuation increases in the future.
- Comparison with AI Stocks: While SMR holds promise, investors may prefer AI stocks that offer higher returns in a shorter timeframe, highlighting a diverse market perspective on investment opportunities.
See More
Fluor Sells NuScale Stake for 326% Profit Amid Nuclear Energy Surge
- Stock Surge: NuScale Power's stock surged to $57 per share over the past year, attracting numerous investors, prompting Fluor, an early investor, to sell its stake at this high valuation to realize profits.
- Significant Sale Proceeds: Fluor sold its 126 million shares of NuScale Power for $2.43 billion in gross proceeds, having initially invested $570 million, achieving a remarkable 326% return on investment, which significantly bolsters the company's financial position.
- Strategic Reinvestment: Fluor plans to use the proceeds from the sale to strengthen its balance sheet, reduce debt, and support its $1.4 billion share repurchase program, while continuing to pursue high-growth opportunities in the nuclear sector.
- Ongoing Partnership: Although Fluor has reduced its equity stake in NuScale, it will remain a preferred engineering, procurement, and construction (EPC) partner, allowing it to participate in NuScale's ongoing development while mitigating equity-owner risks and maintaining service revenue.
See More
Fluor Sells NuScale Stake to Strengthen Financial Position
- Profitable Stake Sale: Fluor realized $2.43 billion in gross proceeds from its sale of NuScale Power shares, achieving a remarkable 326% return on its initial $570 million investment, with plans to use these funds to strengthen its balance sheet and support a $1.4 billion share repurchase program.
- Market Opportunity Seized: By selling its 126 million shares when NuScale's stock surged to $57 per share, Fluor capitalized on a high valuation, providing substantial profits for early investors and demonstrating the company's keen insight into the nuclear energy market.
- Strategic Partnership: Although Fluor has transitioned from a majority owner to a preferred EPC partner for NuScale, it will continue to participate in ongoing developments, ensuring a steady revenue stream while mitigating equity ownership risks.
- Diversified Growth Strategy: Fluor is actively pursuing additional opportunities in conventional nuclear and SMR projects in collaboration with various technology providers, while also expanding into carbon capture, utilization, and storage, as well as hydrogen production, to meet rising infrastructure demands.
See More
