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Nuclear Rally Faces a Caution Flag as Analysts Warn on SMR Startups

Analysts warn that pre-revenue SMR startups carry far higher risk than established nuclear utilities.

Overview

  • The Global X Uranium ETF has risen 65% over the past year, underscoring renewed investor interest in nuclear energy.
  • Shares of upstart reactor developers Oklo and Nano Nuclear are up 278% and 21% respectively, after sharp swings.
  • Both companies remain pre-revenue with no commercial products, and their paths to licensing and deployment are lengthy.
  • Oklo does not expect its first Aurora reactor to start operating until 2027 or 2028, while commercial deployment for Nano Nuclear is described as more likely in the 2030s.
  • Motley Fool’s analysis points to Constellation Energy, the largest U.S. nuclear operator with major deals, as a lower-risk way to gain nuclear exposure.