Nuclear Companies Tackle AI Era Power Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: Fool
- Surging Power Demand: The International Energy Agency (IEA) forecasts that global electricity consumption for data centers will exceed 945 terawatt-hours (TWh) by 2030, doubling Japan's current annual consumption, necessitating a massive build-out of generating capacity to meet this demand.
- BWX Technologies' Market Position: BWX Technologies (BWXT), a manufacturer of nuclear and defense components, is projected to generate $2.3 billion from its government operations segment in 2025, highlighting its strong market position and technical moat in the nuclear sector, with a backlog of $8.6 billion as of March 2026 indicating future growth potential.
- Oklo's Innovative Potential: Oklo is designing a fast-fission microreactor called Aurora, which, while not yet commercialized, could meet the substantial electricity demands of data centers and can be deployed directly in rural areas, addressing infrastructure shortages.
- Intensifying Industry Competition: Despite Oklo's promising technology, it faces competition from other energy companies like Bloom Energy, which is already deploying fuel cell systems to support AI, making Oklo's future reliant on Nuclear Regulatory Commission certification and market acceptance.
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Analyst Views on BWXT
Wall Street analysts forecast BWXT stock price to rise
7 Analyst Rating
5 Buy
2 Hold
0 Sell
Moderate Buy
Current: 203.070
Low
195.00
Averages
216.00
High
230.00
Current: 203.070
Low
195.00
Averages
216.00
High
230.00
About BWXT
BWX Technologies, Inc. is a specialty manufacturer of nuclear components, a developer of nuclear technologies and a service provider. The Company also provides special nuclear materials processing, environmental site restoration services, products, and services. Its Government Operations segment manufactures naval nuclear reactors, including related nuclear fuel, for the United States Naval Nuclear Propulsion Program for use in submarines and aircraft carriers. It also fabricates fuel-bearing precision components that range in weight from a few grams to hundreds of tons, manufactures electromechanical equipment, and performs design, manufacturing, inspection, assembly, and testing activities. The Company is also a provider of advanced specialty materials, fabrication, and high-strength alloy manufacturing. Its Commercial Operations segment designs and manufactures commercial nuclear steam generators, heat exchangers, pressure vessels, reactor components, and other auxiliary equipment.
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.
Applied Atomics Enters Licensing Agreement with BWXT for mPower SMR Technology
- Exclusive Licensing Agreement: Applied Atomics has signed an exclusive licensing agreement with BWX Technologies, granting rights for the commercial development and deployment of the mPower small modular reactor in the U.S., Canada, and beyond, marking a strategic move in the nuclear energy market.
- Technological Innovation: The mPower reactor is designed as an integral pressurized light water reactor capable of generating 195 megawatts of electricity and 575 MWth of heat, significantly reducing the risk of loss of coolant accidents by eliminating primary coolant piping found in traditional nuclear plants, thereby enhancing safety.
- Growing Market Demand: With domestic electricity demand projected to grow at its fastest rate in a generation, Applied Atomics is targeting the industrial and technology sectors for mPower deployment, addressing the anticipated need for over 300 gigawatts of new power capacity in the U.S. by 2035, showcasing substantial market potential.
- Certification and Support: Under the agreement, Applied Atomics will re-engage with the NRC to resume mPower design certification activities and will collaborate with BWXT to provide technical support, ensuring a smooth licensing process and further advancing the commercialization of nuclear technology.
See More
Nuclear Energy to Support AI Infrastructure Demands
- Surging Power Demand: The International Energy Agency (IEA) forecasts that global electricity consumption for data centers will exceed 945 terawatt-hours (TWh) by 2030, doubling Japan's current annual consumption, highlighting the immense power requirements driven by AI infrastructure.
- BWX Technologies Overview: BWX Technologies focuses on manufacturing nuclear components, with government operations expected to generate $2.3 billion in revenue by 2025, underscoring its strong market position and stable revenue streams in the nuclear sector.
- Oklo Microreactor Design: Oklo is designing a microreactor called Aurora that can utilize nuclear waste as fuel and provide power in remote areas; although it has yet to receive commercialization certification, its technology holds potential to meet the electricity demands of AI data centers.
- Competitive Industry Pressure: Oklo faces competition from other energy companies, such as Bloom Energy, which is already deploying fuel cell systems to support AI; while its future remains uncertain, Oklo's technology could become a critical component of AI infrastructure if it receives approval from the Nuclear Regulatory Commission.
See More
Nuclear Companies Tackle AI Era Power Challenges
- Surging Power Demand: The International Energy Agency (IEA) forecasts that global electricity consumption for data centers will exceed 945 terawatt-hours (TWh) by 2030, doubling Japan's current annual consumption, necessitating a massive build-out of generating capacity to meet this demand.
- BWX Technologies' Market Position: BWX Technologies (BWXT), a manufacturer of nuclear and defense components, is projected to generate $2.3 billion from its government operations segment in 2025, highlighting its strong market position and technical moat in the nuclear sector, with a backlog of $8.6 billion as of March 2026 indicating future growth potential.
- Oklo's Innovative Potential: Oklo is designing a fast-fission microreactor called Aurora, which, while not yet commercialized, could meet the substantial electricity demands of data centers and can be deployed directly in rural areas, addressing infrastructure shortages.
- Intensifying Industry Competition: Despite Oklo's promising technology, it faces competition from other energy companies like Bloom Energy, which is already deploying fuel cell systems to support AI, making Oklo's future reliant on Nuclear Regulatory Commission certification and market acceptance.
See More
BWXT Licenses mPower Reactor Design to Applied Atomics Amid Rising Electricity Demand
- Licensing Agreement: BWX Technologies (BWXT) has entered into a licensing agreement with nuclear developer Applied Atomics for its previously shelved mPower small modular reactor design, aimed at addressing the surging electricity demand from AI data centers.
- Exclusive Deployment Rights: Applied Atomics has secured exclusive rights to utilize BWXT's reactor technology for land-based power generation applications, allowing the company to advance its commercialization efforts without BWXT directly developing or operating nuclear plants.
- Decade of Development: BWXT spent ten years designing the mPower reactor, and Applied Atomics CEO Benjamin Kellie stated that their job is to complete its development and design the first optimized, vertically integrated SMR power plant, indicating confidence in future market opportunities.
- Market Reaction: Following the announcement of the agreement, BWXT's stock traded marginally higher during pre-market hours on Thursday, reflecting market optimism regarding the nuclear revival, particularly driven by activist investor Ananym Capital's influence.
See More
Nuclear Energy Market Recovery: Three Companies Set to Benefit
- Market Recovery Outlook: The International Energy Agency forecasts that global nuclear capacity could increase by over 50% from 2025 to 2050, presenting significant market opportunities for companies like Cameco, BWX Technologies, and Oklo, especially as governments push for decarbonization initiatives.
- Cameco's Growth Potential: Cameco accounted for 15% of global uranium production in 2025, and despite facing a price drop from $62.25 to $35.00, the rebound to $84.18 by the end of 2023 has significantly improved profitability, further enhanced by its acquisition of Westinghouse Electric for business diversification.
- BWX's Market Positioning: As North America's only large-scale producer of nuclear components, BWX Technologies not only focuses on naval reactor systems but is also developing modular microreactors, positioning itself to benefit from the growing demand for smaller nuclear reactors, thereby strengthening its competitive edge in the nuclear market.
- Oklo's Innovative Model: Oklo's Aurora microreactor generates only 1.5 MWe individually but can be combined to achieve up to 75 MWe, and its closed-loop fuel recycling system allows for a decade of operation without refueling, showcasing a unique competitive advantage in the nuclear energy sector.
See More
ATI Signs Long-Term Strategic Agreement with BWXT for Defense Materials
- Strategic Partnership Extension: ATI's new material supply agreement with BWX Technologies extends through fiscal year 2030, reinforcing their decades-long collaboration in supporting the U.S. Naval Nuclear Propulsion Program and ensuring a stable supply of critical defense materials.
- Technological Advantage: With over 70 years of experience in manufacturing specialty materials for nuclear applications, ATI, as the world's largest producer of such materials, combines deep materials science expertise with proprietary process technologies to deliver essential high-performance materials for BWXT's mission.
- Multi-Domain Defense Collaboration: As a strategic defense partner, ATI supplies high-performance titanium, nickel-based alloys, and specialty materials that support next-generation systems across air, land, sea, and missile platforms, ensuring performance and protection in the most demanding environments.
- Innovation-Driven Growth: ATI is committed to solving the world's toughest challenges through materials science, leveraging unique customer partnerships and a commitment to innovation to provide materials and solutions that meet the challenges of today and the future, thereby enhancing its market competitiveness.
See More
Applied Atomics Enters Licensing Agreement with BWXT for mPower SMR Technology
- Exclusive Licensing Agreement: Applied Atomics has signed an exclusive licensing agreement with BWX Technologies, granting rights for the commercial development and deployment of the mPower small modular reactor in the U.S., Canada, and beyond, marking a strategic move in the nuclear energy market.
- Technological Innovation: The mPower reactor is designed as an integral pressurized light water reactor capable of generating 195 megawatts of electricity and 575 MWth of heat, significantly reducing the risk of loss of coolant accidents by eliminating primary coolant piping found in traditional nuclear plants, thereby enhancing safety.
- Growing Market Demand: With domestic electricity demand projected to grow at its fastest rate in a generation, Applied Atomics is targeting the industrial and technology sectors for mPower deployment, addressing the anticipated need for over 300 gigawatts of new power capacity in the U.S. by 2035, showcasing substantial market potential.
- Certification and Support: Under the agreement, Applied Atomics will re-engage with the NRC to resume mPower design certification activities and will collaborate with BWXT to provide technical support, ensuring a smooth licensing process and further advancing the commercialization of nuclear technology.
See More
Nuclear Energy to Support AI Infrastructure Demands
- Surging Power Demand: The International Energy Agency (IEA) forecasts that global electricity consumption for data centers will exceed 945 terawatt-hours (TWh) by 2030, doubling Japan's current annual consumption, highlighting the immense power requirements driven by AI infrastructure.
- BWX Technologies Overview: BWX Technologies focuses on manufacturing nuclear components, with government operations expected to generate $2.3 billion in revenue by 2025, underscoring its strong market position and stable revenue streams in the nuclear sector.
- Oklo Microreactor Design: Oklo is designing a microreactor called Aurora that can utilize nuclear waste as fuel and provide power in remote areas; although it has yet to receive commercialization certification, its technology holds potential to meet the electricity demands of AI data centers.
- Competitive Industry Pressure: Oklo faces competition from other energy companies, such as Bloom Energy, which is already deploying fuel cell systems to support AI; while its future remains uncertain, Oklo's technology could become a critical component of AI infrastructure if it receives approval from the Nuclear Regulatory Commission.
See More
Nuclear Companies Tackle AI Era Power Challenges
- Surging Power Demand: The International Energy Agency (IEA) forecasts that global electricity consumption for data centers will exceed 945 terawatt-hours (TWh) by 2030, doubling Japan's current annual consumption, necessitating a massive build-out of generating capacity to meet this demand.
- BWX Technologies' Market Position: BWX Technologies (BWXT), a manufacturer of nuclear and defense components, is projected to generate $2.3 billion from its government operations segment in 2025, highlighting its strong market position and technical moat in the nuclear sector, with a backlog of $8.6 billion as of March 2026 indicating future growth potential.
- Oklo's Innovative Potential: Oklo is designing a fast-fission microreactor called Aurora, which, while not yet commercialized, could meet the substantial electricity demands of data centers and can be deployed directly in rural areas, addressing infrastructure shortages.
- Intensifying Industry Competition: Despite Oklo's promising technology, it faces competition from other energy companies like Bloom Energy, which is already deploying fuel cell systems to support AI, making Oklo's future reliant on Nuclear Regulatory Commission certification and market acceptance.
See More
BWXT Licenses mPower Reactor Design to Applied Atomics Amid Rising Electricity Demand
- Licensing Agreement: BWX Technologies (BWXT) has entered into a licensing agreement with nuclear developer Applied Atomics for its previously shelved mPower small modular reactor design, aimed at addressing the surging electricity demand from AI data centers.
- Exclusive Deployment Rights: Applied Atomics has secured exclusive rights to utilize BWXT's reactor technology for land-based power generation applications, allowing the company to advance its commercialization efforts without BWXT directly developing or operating nuclear plants.
- Decade of Development: BWXT spent ten years designing the mPower reactor, and Applied Atomics CEO Benjamin Kellie stated that their job is to complete its development and design the first optimized, vertically integrated SMR power plant, indicating confidence in future market opportunities.
- Market Reaction: Following the announcement of the agreement, BWXT's stock traded marginally higher during pre-market hours on Thursday, reflecting market optimism regarding the nuclear revival, particularly driven by activist investor Ananym Capital's influence.
See More
Nuclear Energy Market Recovery: Three Companies Set to Benefit
- Market Recovery Outlook: The International Energy Agency forecasts that global nuclear capacity could increase by over 50% from 2025 to 2050, presenting significant market opportunities for companies like Cameco, BWX Technologies, and Oklo, especially as governments push for decarbonization initiatives.
- Cameco's Growth Potential: Cameco accounted for 15% of global uranium production in 2025, and despite facing a price drop from $62.25 to $35.00, the rebound to $84.18 by the end of 2023 has significantly improved profitability, further enhanced by its acquisition of Westinghouse Electric for business diversification.
- BWX's Market Positioning: As North America's only large-scale producer of nuclear components, BWX Technologies not only focuses on naval reactor systems but is also developing modular microreactors, positioning itself to benefit from the growing demand for smaller nuclear reactors, thereby strengthening its competitive edge in the nuclear market.
- Oklo's Innovative Model: Oklo's Aurora microreactor generates only 1.5 MWe individually but can be combined to achieve up to 75 MWe, and its closed-loop fuel recycling system allows for a decade of operation without refueling, showcasing a unique competitive advantage in the nuclear energy sector.
See More
ATI Signs Long-Term Strategic Agreement with BWXT for Defense Materials
- Strategic Partnership Extension: ATI's new material supply agreement with BWX Technologies extends through fiscal year 2030, reinforcing their decades-long collaboration in supporting the U.S. Naval Nuclear Propulsion Program and ensuring a stable supply of critical defense materials.
- Technological Advantage: With over 70 years of experience in manufacturing specialty materials for nuclear applications, ATI, as the world's largest producer of such materials, combines deep materials science expertise with proprietary process technologies to deliver essential high-performance materials for BWXT's mission.
- Multi-Domain Defense Collaboration: As a strategic defense partner, ATI supplies high-performance titanium, nickel-based alloys, and specialty materials that support next-generation systems across air, land, sea, and missile platforms, ensuring performance and protection in the most demanding environments.
- Innovation-Driven Growth: ATI is committed to solving the world's toughest challenges through materials science, leveraging unique customer partnerships and a commitment to innovation to provide materials and solutions that meet the challenges of today and the future, thereby enhancing its market competitiveness.
See More
