Experts are optimistic about the potential of nuclear energy, with several Wall Street firms forecasting a multi-trillion-dollar opportunity for investors. Goldman Sachs points out a convergence of technological breakthroughs, geopolitical competition, and the demand for clean power fueling a potential renaissance in the sector.
Analysts at Goldman Sachs are particularly excited about small modular reactors (SMRs) and fusion energy, highlighting a surge in investment from tech companies like hyperscalers. While there are limited publicly traded companies developing SMR technology, two notable players are Oklo Inc. and NuScale Power.
-
Oklo focuses on micro-reactors that cater specifically to the power needs of data centers, a strategy underscored by investments from influential figures like OpenAI’s CEO, Sam Altman.
-
NuScale aims to supply electricity to the grid through big utility partnerships, developing significant projects in both the U.S. and Europe. It is currently the only U.S. company approved to build an SMR facility.
Despite their promise, neither company has built a commercial SMR yet, leaving their future market success uncertain. Analysts suggest including both companies in investment portfolios to spread the risk across different approaches in the SMR sector. The nuclear energy market could potentially reach $10 trillion, making it an attractive area for growth-focused investors.
