Nuclear-related stocks, which have roared higher over the past twelve months amid AI-data center growth expectations, turned mostly positive Friday following Federal Reserve Chairman Jerome Powell signaling that the door is wide open for a rate cut next month. Heading into Friday's stock market, nuclear stocks had angled lower on the week as the broader AI-dominated stock market paused to consolidate. Palantir Technologies and others declined in recent days.
S&P 500 nuclear giants Constellation Energy and Vistra ended Friday's stock market down 3.8% and 3.5%, respectively, for the week. Following Powell's Jackson Hole comments, Constellation Energy stock edged down 0.8% on Friday with Vistra stock advancing a fraction.
For August, Constellation is down 10.8%, Vistra has declined 8.7%. Meanwhile, companies focused on the burgeoning small modular reactor nuclear technology (SMR), which has seen significant investment form Big Tech, also began Friday with losses for the week.
Nuclear power startup Oklo, which has been backed by OpenAI CEO Sam Altman, headed into Friday's action down 5.45% on the week and holding a 12% loss for the month. During regular stock market action Friday, Oklo shares jumped 4.8%, making a strong move from its 50-day moving average.
Fellow SMR-focused plays NuScale Power finished Friday up 4.6% and ended the week down 1.2% for the week and 30% so far in August. Nano Nuclear Energy moved 7.6% higher in Friday's stock market, cutting into its nearly 19% decline for the week. It is now off 11.6% since the beginning of the month.
Overall, the S&P 500 rose moderately before revving higher after the release of Powell's Jackson Hole speech transcript. Powell said that rising downside employment risks "may warrant adjusting our policy stance" from its current restrictive setting."
Investors can keep tabs on the IBD Leaderboard watchlist, the IBD 50 list of top growth stocks and IBD SwingTrader along with the IBD Sector Leaders list.
Nuclear Stock Coverage Changes This Week
As investors this week appeared to hedge bets on whether there is an AI bubble, several analysts initiated and changed coverage on nuclear stocks.
On Monday, Ladenburg double downgraded Nano Nuclear Energy to sell, from a previous buy, with a price target of 9, down from 51. This decision came after NNE reported its fiscal Q3 results. Ladenburg analysts hoped management would streamline its strategy and prioritize core initiatives, but the firm's takeaway was that the company instead continues promoting a broad, diversified model.
Ladenburg analysts added that the company's credibility has been "eroded by missed timelines and broad strategic ambitions."
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Meanwhile, UBS on Wednesday initiated coverage of Oklo with a neutral rating and 65 price target. That is slightly below Oklo's 67.19 stock price a of Thursday's close.
UBS analysts wrote they were "cautiously optimistic" on the potential for a broader U.S. nuclear infrastructure build-out but awaits further commercialization progress. The analysts stressed there are risks in nuclear project development while the stock's valuation is elevated relative to the broader nuclear space.
Also on Wednesday, Melius Research initiated coverage of S&P 500 stocks Constellation Energy and Vistra, giving both buy designations. The analysts handed CEG a 462 price target, representing around 48% upside from current levels, while Vistra has a 295 price target. That VST price target is 55% above the current 190.28 Vistra stock price.
Melius Research analysts wrote that the introduction, adoption and acceleration of AI has transformed "energy & power" into an AI category and the market is in the early stages of a "power revolution" that is only in the early innings of shifting leadership toward a whole new group of winners.
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On Thursday, Bank of America initiated coverage of NuScale Power with a neutral rating and a 36 price target, representing about 7% upside. The firm wrote that NuScale offers "a more de-risked fuel pathway" compared to SMR-focused peers, but that the company remains in the early commercialization stage and that the current valuation "already prices in significant future success."
Other Nuclear-Related Plays
BWX Technologies, the U.S. Navy's main nuclear reactor supplier, fell 1.3% in stock market action Friday. The stock has declined around 15% since hitting an all-time high of 189.25 on Aug. 5 after reporting much better-than-expected second-quarter earnings and revenue.
Uranium miner Centrus Energy ended the week up 1.9% on the strength of a 5.4% advance Friday. Similar to BWXT, Centrus entered Friday's stock market down 33% since roaring to record highs following earnings on Aug. 5.
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Canada-based uranium refiner Cameco gained 4.9% Friday, narrowing its loss for the week. Cameco, which owns a 49% stake in nuclear reactor builder Westinghouse, also recently announced better-than-expected second-quarter earnings, with quarterly profit soaring 410%.
Among other nuclear plays, GE Vernova, Uranium Energy and Lightbridge were all down for the week at Friday's stock market close. Energy Fuels roared 12.8% higher Friday.
Please follow Kit Norton on X @KitNorton for more coverage.
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