The Policy Revolution

Executive orders targeting a quadrupling of US nuclear capacity from 100GW to 400GW by 2050 have significantly altered the investment landscape. With regulatory approval times potentially dropping from four years to approximately two years through the Atlantic Partnership for Advanced Nuclear Energy, projects that once faced decade-long delays may now have clearer paths to commercialization. The UK-US agreement represents an estimated £40 billion in planned deployment capital, with X-Energy and Centrica planning to lead 12 advanced modular reactors in Hartlepool.

Federal backing has reached notable levels. Constellation Energy's reported $1 billion GSA contract - described as the largest government energy purchase in history - suggests that nuclear may be becoming a sustained national priority. The Department of Energy's stated goal to prioritize 5GW of power uprates and 10 new large reactors could create a visible pipeline of opportunities.

The Uranium Supply Squeeze

Bank of America analysts forecast uranium prices could potentially double to $140 by 2027, reflecting possible supply constraints ahead. With Russia reportedly controlling approximately 39% of global enrichment capacity and a 2028 supply transition approaching, Western utilities may face significant supply challenges. The US reportedly maintains approximately 14 months of uranium inventory versus China's estimated 12-year stockpile, potentially creating strategic concerns.

Following Energy Secretary Chris Wright's statements about strategic reserve expansion, uranium mining stocks showed notable gains - Cameco reportedly rose 9.4%, Centrus Energy climbed 9.3%, and Uranium Energy increased over 10% in reported trading. Defense Production Act procurement contracts could potentially provide additional support for producers.

The AI Energy Crisis

Google's reported 500MW agreement with Kairos Power represents what's described as the first corporate SMR purchase agreement, potentially validating nuclear as a solution for AI's growing energy needs. Goldman Sachs analysts estimate 85-90 gigawatts of new nuclear capacity may be needed by 2030 for data centers, with AI facilities potentially consuming 945 terawatt-hours annually - roughly equivalent to Japan's electricity consumption according to reports.

The reported £11 billion Cottam coal plant conversion by Holtec, EDF, and Tritax could demonstrate the potential economics of repurposing existing infrastructure. With numerous coal plants worldwide potentially suitable for conversion, the theoretical addressable market could be substantial. NuScale's reported $2-3 billion TVA deal - described as significantly larger than existing global SMR projects - may help validate utility-scale viability.

Investment Opportunities

The nuclear sector may offer multiple potential entry points across the value chain. Uranium miners like Cameco (CCJ), while trading at elevated valuations around 70x forward earnings according to reports, could see earnings growth if uranium prices rise as some analysts project. Centrus Energy (LEU) reportedly holds a leading position in Western HALEU fuel production for advanced reactors.

Power producers may present interesting risk-reward profiles. Vistra Corp (VST), which reportedly gained significantly following AI power deals, trades at approximately 22x earnings with analysts projecting continued growth. Constellation Energy (CEG) operates what's described as the largest US nuclear fleet at 31.7GW capacity.

SMR developers could offer higher-risk, potentially higher-reward opportunities. NuScale Power (SMR), with what's described as the only NRC-approved design and TVA's backing, may be positioned for Western deployment. BWX Technologies (BWXT) reportedly supplies components across multiple reactor designs, potentially providing diversified exposure.