Shares tied to nuclear fuel and experimental nuclear energy technologies experienced substantial gains on Monday, driven by geopolitical tensions following President Trump’s intervention in Venezuela and the announcement of new funding from the Department of Energy. The surge was particularly significant among companies involved in the development of small modular reactors (SMRs), including Nuscale, Oklo, and Nano Nuclear, all of which reported double-digit increases in their stock prices.
In addition, nuclear fuel suppliers such as Lightbridge, Critical Metals, Centrus Energy, and Energy Fuels also saw notable gains. This uptick coincided with the Department of Energy’s decision to allocate $2.7 billion over the next decade aimed at enhancing domestic capacity for enriched uranium. Centrus Energy stands to benefit significantly from this funding, as it is set to receive $900 million.
The reasons behind the sharp rise in these stocks remain somewhat complex, as there is limited company-specific news to fully account for the pricing movements. However, it is reasonable to speculate that Trump’s actions in Venezuela have contributed to the overall climate of uncertainty. The potential imprisonment of Venezuelan President Nicolas Maduro could complicate the existing agreements between the United States and China—Venezuela’s key ally—regarding access to rare earth metals, including uranium. Such developments could lead to tighter supplies and consequently push prices higher, particularly for rare earths, as evidenced by the sharp increase in the prices of lithium and other related materials in China on the same day.
As the market reacts to these pressures, rising prices and the prospect of constrained supplies for nuclear fuel may enhance the valuation of innovative nuclear technologies like SMRs. Furthermore, the situation might also make it more likely for the U.S. government to invest directly in domestic producers of critical metals, including companies like Energy Fuels, which specializes in uranium mining and other vital resources.
In the background of these developments is the increasing demand for electricity, largely driven by advancements in artificial intelligence. This growing need is expected to further amplify uranium prices and heighten the reliance on nuclear power in the foreseeable future.
