Recently, nuclear energy stocks in the US stock market have experienced significant gains, especially Vistra Energy. $Oklo Inc (OKLO.US)$Please use your Futubull account to access the feature.$NuScale Power (SMR.US)$ Yesterday, nuclear energy stocks in the US stock market closed with mixed results, but shares of small modular reactor companies continued to soar. $NANO Nuclear Energy (NNE.US)$ with a 34% increase, Oklo surged over 22%, and NuScale Power rose more than 4%.

Just last week,$Amazon (AMZN.US)$and $Alphabet-A (GOOGL.US)$/ $Alphabet-C (GOOG.US)$ The electricity supply agreements reached respectively are driving the deployment of the first batch of small modular reactors (SMRs) in the United States, which is of significant importance.

On October 14th local time, amazon announced the signing of the world's first corporate agreement to purchase nuclear energy from SMRs developed by Kairos Power, which will build 7 small modular nuclear reactors to power Google's data centers. On the 16th local time, Amazon announced investments in nuclear power, signing three related agreements at once. Amazon expressed support for the development of SMRs, with a total investment exceeding 0.5 billion US dollars.

SMR is a relatively novel way of nuclear power generation. Compared to traditional nuclear power plants, SMRs are designed to be more compact with shorter construction periods, controllable costs, and higher safety. The core advantages of SMRs lie in their flexibility and scalability. In contrast to large nuclear power plants, SMRs can be built in modules, suitable for small-scale and decentralized power grids, better meeting the power needs of emerging markets and remote areas.

Previously, HSBC stated that the development of SMRs is receiving more attention in the market, with increasing investments in SMRs globally.

Three strong small modular reactor (SMR) concept stocks

• Oklo (OKLO): Pioneer of small modular nuclear reactors

$Oklo Inc (OKLO.US)$ Oklo is a startup company focusing on the development of small modular nuclear reactors (SMRs), backed by tech and investment giants like OpenAI founder and CEO Sam Altman. Oklo's stock soared today, with a more than 22% increase in yesterday's closing, reaching a historical high; the stock has accumulated over 143% increase from last week until now (six trading days).

In May of this year, Oklo went public on the New York Stock Exchange through a Special Purpose Acquisition Company (SPAC). On the first day of trading (May 10), the company's stock experienced intense selling pressure, plummeting by 54% in a single day. Following its IPO, Oklo's stock price remained volatile, hitting a low point of $5.35 on September 9, then experiencing a substantial rebound, accumulating nearly 300% increase in the past one and a half months.

As early as 2015, Oklo gained favor and investment from Altman, who believed the company was 'most likely to commercialize an advanced fission-based energy solution.' In addition, tech and investment heavyweights such as Jeff Bezos, Bill Gates, Peter Thiel are also major shareholders of the company. The involvement of these top investors not only brought financial security to Oklo but also bolstered market confidence in its technology and future prospects.

Oklo's core competitive edge lies in its next-generation fast reactor technology, with a product line of nuclear power plants ranging from 15 megawatts to 50 megawatts, using liquid metal reactor technology known for its high efficiency and stability. Compared to traditional nuclear reactors, OKLO's design is more compact and suitable for a wide range of applications, including remote areas, islands, and more.

Co-founder and CEO Jacob DeWitte of the company stated that they are attempting to design and handle the entire project in a way that can be reasonably and quickly established. Despite challenges with permits and fuel supply, Oklo has already achieved multiple breakthroughs. It is reported that Oklo has received four cost-sharing awards from the US Department of Energy to advance the commercialization of advanced recycling technology.

In addition, the 15-megawatt version of Oklo's Aurora Power Station reactor is expected to cost around $70 million, with leveling electricity costs between $80-130 per megawatt-hour, comparable to peak gas-fired power plants and offshore wind power. This cost level positions Oklo with potential advantages in the competitive energy market.

In terms of commercial partnerships, Oklo has signed an agreement with the Southern Ohio Diversification Initiative to build the second and third commercial power stations at the US Department of Energy's Piketon site. Additionally, the company plans to build over 50 reactors with a total capacity exceeding 700 megawatts.

However, despite carrying the popular label of 'AI Datacenter + Nuclear Power,' Oklo has yet to generate any revenue since its establishment. Due to the lengthy construction period of nuclear power plants, Oklo is expected to launch its first reactor by 2027, creating revenue at that time. In the first half of this year, Oklo incurred a net loss of $0.541 billion for ordinary shareholders, compared to $9.1838 million in the same period last year.

• NANO Nuclear Energy (NNE): Pioneer of Micro Reactors

Micro Nuclear Reactor Technology Company$NANO Nuclear Energy (NNE.US)$ Listed on the US Nasdaq on May 8th this year at an offering price of $4; the stock surged over 34% yesterday, closing at $27.36, a 584% increase from its May listing price, with an accumulated increase of over 52% since last week.

NANO Nuclear Energy is developing solid core battery reactors ZEUS and low-pressure coolant reactors ODIN, which are portable, on-demand, advanced nuclear micro-reactors. These reactors are small in size, low in cost, and can flexibly meet electricity demands, especially suitable for remote areas and military bases in need of reliable energy solutions, making them particularly attractive for areas with weak infrastructure.

In September this year, NANO Nuclear Energy announced the establishment of a new subsidiary, NANO Nuclear Space Inc. (NNS), to explore the potential commercial applications of the micro nuclear reactor technology the company is developing in space.

In addition, NANO Nuclear Energy has established a high-assay low-enriched uranium (HALEU) fuel manufacturing facility through its subsidiary, laying a forward-looking foundation not only to ensure future fuel supply but also for the sustainable development of the entire industry. By constructing the HALEU fuel manufacturing facility, NANO Nuclear Energy can achieve self-sufficiency and provide fuel support to the entire industry, further enhancing market competitiveness.

Industry forecasts show that the market for small modular nuclear reactors is expected to grow significantly in the coming years, with NANO Nuclear Energy poised to capture a significant market share in this process.

It is worth noting that like Oklo, the company has not yet achieved revenue, with a net loss of 4.6682 million USD for the quarter ending June 30, compared to 2.7 million USD in the same period last year. Just four months after its IPO, NANO Nuclear Energy was officially included in the Russell 3000 Index, effective September 23, 2024.

• NuScale Power (SMR): Leader in small modular nuclear reactor technology.

$NuScale Power (SMR.US)$ Closing up more than 4% yesterday, accumulating more than 44% since last week, and surging more than 476% since the beginning of the year. NuScale Power saw its stock price hit 20.35 USD in mid-trading last Friday, reaching a historical high.

NuScale, with its modular design and safety certification from the Nuclear Regulatory Commission (NRC) in the USA, has become the world's first small modular nuclear reactor design to pass such certification. Its technology allows for flexible combination of multiple modules to meet various electricity needs, significantly reducing initial capital investment and providing great flexibility for future power expansion.

On August 8th, NuScale's President and CEO John Hopkins stated during the financial earnings conference call that the company's small modular reactor deployment work is ahead of its peers. NuScale is looking to upgrade its standard module design to 77 megawatts, with the NRC expected to make a decision on the application by mid-2025. He also emphasized that the company is currently negotiating with clients such as data centers and other large industrial enterprises, but did not disclose specific details.

Hopkins added that clients they are currently negotiating with require round-the-clock clean energy and tend to prefer build-own-transfer or build-own-operate models, where the client provides long-term power purchase agreements and developers help with financing. Driven by energy security and climate issues, clients in Central and Eastern Europe have also shown strong interest in NuScale technology.

Additionally, NuScale actively collaborates with local governments and power companies to provide tailored solutions for more efficient energy production and management.

In the first half of this year, NuScale's cumulative net loss was 0.123 billion USD, compared to a cumulative net loss of 65.344 million USD in the same period last year, an 87.5% increase year-on-year; cumulative revenue in the first half of the year was 2.346 million USD, compared to 11.3 million USD in the same period last year, a 79.24% decrease year-on-year.

Nuclear power stocks have seen astonishing gains this year, with tech giants venturing into nuclear energy.

US nuclear stocks have seen astonishing gains this year. In addition to the three small modular reactor concept stocks mentioned above, electricity giants$Vistra Energy (VST.US)$Up over 241% year-to-date; the top nuclear reactor operator in the United States$Constellation Energy (CEG.US)$Risen by as much as 135% year-to-date.

In addition to nuclear power stocks, there are also related ETFs in the US stock market— $VanEck Uranium and Nuclear ETF (NLR.US)$,$RANGE NUCLEAR RENAISSANCE INDEX ETF (NUKZ.US)$These two ETFs have seen increases of 34% and 70% respectively year-to-date, both hitting historical highs during yesterday's trading session.

Nuclear power is becoming the new favorite of technology giants, ahead of Google and Amazon.$Oracle (ORCL.US)$And.$Microsoft (MSFT.US)$also made corresponding layouts:

In September, Oracle's chairman Larry Ellison announced during the performance conference call that the company is designing a datacenter that is expected to require over 1 gigawatt of power, which will be powered by three small nuclear reactors.

Last month, Microsoft signed a 20-year agreement with Constellation Energy, the largest nuclear reactor operator in the USA, called the Three Mile Agreement, to restart the Three Mile nuclear power plant and sell all the generated electrical utilities to Microsoft.

In addition, $NVIDIA (NVDA.US)$ The CEO previously indicated in an interview that nuclear power could be a viable option to meet the energy needs of AI. More and more data centers require renewable energy, and nuclear energy is a good choice. He hinted that NVIDIA may be interested in nuclear power, which is part of its broader strategy to diversify the energy sources of data centers.

According to data from the US Energy Information Administration (EIA), nuclear power is the most reliable energy source, providing a stable 93% of the maximum power annually without producing carbon dioxide. Its reliability is four times that of solar power and three times that of wind power.

According to the latest research report by HSBC, based on the data released by EPRI institutions in May of this year, by 2030, data centers may consume 9% of the electricity in the USA, more than twice the current amount. Future power shortages may become inevitable, so some tech giants are exploring new power supply options and turning their attention to nuclear energy.

Editor / jayden