Nuclear stocks were trending lower Thursday—could the pull-back be a buying opportunity in one the market's hottest sectors?
- OKLO stock is dropping. Watch the real-time price action here.
Shares of Oklo, Inc. (NASDAQ: OKLO), NuScale Power Corp. (NASDAQ: SMR) and Nano Nuclear Energy, Inc. (NASDAQ: NNE) were pulling back after recent massive gains on a mix of market rotation away from speculative sectors, analyst ratings and profit taking after a broad run-up.
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Reasons for the Dip
Analysts from Seaport Research downgraded Oklo stock from Buy to Neutral on Tuesday. The firm pointed to its high valuation and lack of tangible revenue, dampening sentiment in the sector.
Goldman Sachs analyst Brian Lee initiated coverage on Oklo with a Neutral rating and a $117 price target on Wednesday, adding selling pressure to the stock.
Shares of NuScale and Nano Nuclear also dropped as investors rotated capital into more defensive stocks and locked in profits from the recent rally.
Buy The Dip?
The current pull-back in SMR (small modular reactor) stocks could be viewed as a buying opportunity. Goldman Sachs highlighted several future catalysts and potential upsides for the industry.
The firm pointed to seemingly endless power demand for AI data centers, which are seeking reliable, clean power sources such as nuclear.
SMRs offer multiple benefits compared to traditional nuclear reactors, including compact and modular structure that enables flexible scaling.
Goldman also highlighted SMR components, designed for streamlined manufacturing in factory settings, which can simplify production and deployment.
Trump's Nuclear Support
The nuclear sector has benefited from political support, especially under the Trump administration, which has promoted nuclear partnerships and technology deals.
In May 2025, President Donald Trump signed multiple executive orders to revitalize the U.S. nuclear sector, setting a target to increase nuclear power capacity to 400 GW by 2050 from approximately 100 GW currently.
One order, in particular, directs the rapid advancement of cutting-edge nuclear technologies, such as SMRs, by coordinating initiatives across the Department of Defense and the Department of Energy, and making stocks of uranium and plutonium available for recycling into nuclear fuel.
The Takeaway
The pullback in SMR and nuclear-related stocks could be viewed as a buying opportunity, as the industry has significant tailwinds, including massive power demand and strong political support.
Investors must decide if these tailwinds are already priced in or if the nuclear industry has more upside ahead.
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