According to the latest Reuters report, President Donald Trump is expected to sign an executive order as early as Friday (May 23) to accelerate the approval and construction of nuclear power plants in the U.S.
The news immediately sent nuclear stocks soaring during intraday trading, with Oklo (OKLO) surging as much as 31.3%, Centrus Energy (LEU) jumping 26.5%, Nano Nuclear Energy (NNE) skyrocketing 29.7%, NuScale Power (SMR) climbing 18.3%, while Energy Fuels (UUUU) and Uranium Energy (UEC) rising 19.1% and 26%, respectively.
As of the time of writing (1:30 p.m. ET), the executive order has yet to be signed. Reuters reported that the order would invoke the Defense Production Act and direct the Department of Energy and Department of Defense to fast-track the construction of new nuclear reactors. The report noted that reliance on enriched uranium from Russia and China was a key motivation behind the order, with the administration aiming to spur development on both private and public lands.
Today’s rally in nuclear stocks is largely speculative, as most of these companies generate minimal revenue or are still in the pre-revenue stage. While they are developing technologies and solutions for the industry, none have yet secured significant commercial contracts.
For investors, this presents substantial risk, given that the nuclear energy sector operates on a timeline of decades, not months or years. The Obama administration attempted to revitalize the nuclear industry over a decade ago without success, raising doubts about whether this new push will yield different results.
This is not the first time the nuclear sector has experienced a hype cycle. Historical price charts reveal that long-standing publicly traded companies like Energy Fuels and Uranium Energy have exhibited extreme volatility over the past two decades. Yet, during this period, they have failed to generate meaningful or sustainable earnings for investors.
This time may be no different. Bureaucratic reforms in the nuclear industry could take years to materialize—potentially under a different administration by then. Additionally, financing and constructing nuclear power plants remains a challenging endeavor for utilities, given the high costs and uncertain payback periods.
While today’s rally may excite momentum traders, it is likely another short-term spike that will eventually fade as the nuclear industry struggles to meet inflated market expectations. An executive order alone cannot resolve the sector’s fundamental economic challenges—namely, the prohibitive costs and lengthy timelines associated with nuclear projects. Until these issues are addressed, prudent investors may want to steer clear of this volatile space.
