To The Moon

In a significant push for clean energy, shares of small-cap nuclear power companies like Oklo Inc. (OKLO.US), NuScale Power (SMR.US), and NANO Nuclear Energy (NNE.US) experienced notable gains on Friday. This surge is largely attributed to recent policy changes by the U.S. Treasury Department and Internal Revenue Service regarding hydrogen production tax credits, signalling a potentially lucrative future for nuclear energy investments in 2025.

Comparison chart of the three stocks

Key Movers and Their Gains

Among the top performers:

• Oklo Inc ( $Oklo Inc.(OKLO)$ ): Shares skyrocketed 25%, closing at $27.25.

• NuScale Power ( $NuScale Power(SMR)$ ): Gained 17%, ending at $20.85.

• Nano Nuclear Energy ( $NANO Nuclear Energy Inc(NNE)$ ): Rose 13%, closing at $27.01.

Larger players also participated in the rally, with Constellation Energy ( $Constellation Energy Corp(CEG)$ ) gaining 4% to $252.40 and Vistra Energy ( $Vistra Energy Corp.(VST)$ ) up 8% to $163.36. However, the small-cap companies stood out, with investors betting on their growth potential in the expanding SMR market.

Why the Stocks Are Rising

1. Policy Tailwinds: The Treasury Department’s revised hydrogen production tax credits enable a broader segment of nuclear facilities to qualify for incentives. Notably, the rules now extend eligibility to merchant nuclear fleets and SMR projects capable of producing clean hydrogen. This change provides a lucrative revenue stream for companies like Oklo, NuScale, and Nano Nuclear Energy, which are at the forefront of SMR development.

2. Growing SMR Adoption: SMRs are gaining traction due to their scalability, safety, and cost efficiency. As nations transition to carbon-neutral energy sources, SMRs offer an attractive alternative to traditional reactors and fossil fuels. For instance, NuScale’s VOYGR™ reactor technology is the first and only SMR design to receive approval from the U.S. Nuclear Regulatory Commission.

3. Investor Sentiment and Analyst Ratings: Investor sentiment towards nuclear energy stocks has been increasingly positive, driven by the global push for clean energy and the potential of SMRs to provide reliable and sustainable power. Analysts have been bullish on these stocks, citing strong fundamentals, favourable regulatory environments, and the growing importance of hydrogen as a clean energy source.

Outlook for 2025

The outlook for small-cap growth stocks in the nuclear power sector remains promising. With continued advancements in SMR technology, supportive policies, and increasing investor interest, these companies are well-positioned for sustained growth1. The global transition towards clean energy and the need for reliable power sources will likely drive demand for nuclear energy, providing a solid foundation for these stocks to thrive.

The rise in nuclear power stocks, especially small-cap growth companies like Oklo, NuScale, and NANO, reflects supportive policy changes, technological innovation, and increasing investor interest in clean energy solutions. As we move into 2025, these companies are poised for further growth, driven by the global push for zero-emission energy sources. However, investors should remain mindful of the sector's volatility, regulatory timelines, and the substantial capital investment required for nuclear projects. The bullish sentiment today could very well define the energy landscape of tomorrow.

@TigerWire @Daily_Discussion