Nuclear Power Stocks Jump on Report of New Trump Support for the Industry
Key Takeaways
- President Donald Trump is reportedly set to sign a new executive order aimed at boosting the nuclear power industry.
- Reuters said an executive order that could be signed today is expected to speed up approval of new reactors and strengthen fuel supply chains.
- The news sent shares of nuclear energy firms higher.
Shares of nuclear energy companies, including Constellation Energy (CEG) and Oklo (OKLO), powered higher Friday morning on indications President Donald Trump is set to help boost the industry.
Reuters reported the president is expected to sign an executive order as early as today aimed at streamlining the regulatory process for approving new reactors and enhancing fuel supply chains.
Demand for nuclear energy has soared as tech companies racing to take advantage of the boom in artificial intelligence (AI) are looking for ways to get the massive amounts of electricity needed to run their data centers.
In a note to clients, Wedbush wrote that the need for AI computing power is expected to skyrocket over the next 5-10 years, and that “takes up a tremendous amount of energy.” The analysts noted that while the administration has already taken some steps to encourage nuclear power, this new executive order “is expected to be a significant tailwind for the industry.”
The analysts added that Oklo has been one of the key beneficiaries of the administration’s nuclear industry support, and raised their price target to $55 from $45.
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