The Trump administration’s 2025 industrial strategy has put nuclear energy back in the spotlight. Washington is no longer just subsidising projects — it’s taking equity stakes in companies, effectively becoming a shareholder in key firms it wants to support. The goal is simple: secure US energy independence, reduce reliance on foreign uranium, and power the surging demand from AI data centres and military infrastructure.
This marks a seismic shift in US energy policy. Nuclear isn’t just seen as clean power anymore; it’s being treated as a strategic national security asset, much like semiconductors and rare earths. The Department of Energy (DOE) is leading the charge with billions in funding, contracts, and direct partnerships.
The biggest winners so far:
- Centrus Energy (LEU) – As the only U.S. producer of high-assay low-enriched uranium (HALEU) under a Department of Energy (DOE) contract, Centrus secured over $110M in contracts, extending supply through 2026. A recent $700M convertible debt raise is designed to fund expanded HALEU capacity—but dilutive concerns impacted its share price. Partnerships with Oklo and Korea Hydro & Nuclear Power underpin its strategic role.
- BWX Technologies (BWXT) – This $15B-cap nuclear firm won a $106.6M DOE contract for HALEU deconversion—turning spent fuel into useable uranium. Institutional investors like Vanguard hold around 63% of its shares, signaling strong market confidence. However, BWXT’s $1.17B debt load and acquisition of Kinectrics, Inc. raise questions about fiscal discipline.
- Oklo (OKLO) – A pre-revenue player in the Small Modular Reactor (SMR) space, Oklo has seen its stock rocket over 1,000%, backed by DOE Reactor Pilot Program inclusion and partnerships with the U.S. Air Force and Equinix. Despite $683M in reserves, it burns $28M per quarter and faces regulatory and licensing risks before commercializing its Aurora reactor.
For investors, the opportunity is real, but so are the risks. Government backing can mean guaranteed demand and stability, but also heavy oversight, political swings, and questions about efficiency.
Market Implications and Stock Trends
- Stock Momentum:
- LEU and BWXT have both seen notable YTD rallies (over 180% and 45%, respectively).
- Oklo is a high-risk, high-reward tech-style play betting on AI and defense demand for clean power.
- Wall Street Sentiment:
- BofA recently initiated buy coverage on Oklo, noting its strategic alignment with DOE and AI data center energy needs.
- Analyst Whitney Stanco sees Centrus and BWXT as likely to receive government equity support, following recent deals like Intel and MP Materials.
- Broader Sector Impact:
- Utilities like Constellation (CEG) and Vistra (VSTR)—nuclear operators—are also benefiting from investor enthusiasm, with shares lifting over 35% YTD amid rising power demand forecasts linked to AI and data centers.
What to Watch (Risks Included)
| Company | Catalyst | Risk |
|---|---|---|
| Centrus (LEU) | Monopoly on HALEU, $110M DOE contracts | Convertible debt dilution, execution risk |
| BWXT | HALEU deconversion, capex partnerships | High debt, integration challenges post-acquisitions |
| Oklo | SMR deployment, AI/Defense partnerships | Burn rate, regulatory approval, market timing |
Uncertainty remains over how these government equity deals will play out — and whether taxpayer money should be tied up in company stakes.
“There is a fundamental tension here,” said Philip Rossetti of the R Street Institute. “You’re incentivizing these companies to try to get under this umbrella of governmental protection.”
“The problem is, if that company starts to become inefficient with its production, like if it has rising production costs, or neglecting investment that would improve productivity or reduce operating costs, the bearer of those costs and inefficiencies are going to be the public,” he added.
Still, the White House is signalling more to come. MP Materials surged 50% in July after the Pentagon became its largest shareholder, and Intel jumped 5% after Washington took a 9.9% stake. Commerce Secretary Howard Lutnick even suggested Lockheed Martin (LMT) could be next, calling it a “monstrous discussion about defence.”
“The Biden administration literally was giving Intel money for free and giving TSMC money for free,” Lutnick said. “Donald Trump turned it into saying, ‘Hey, we want equity for the money. If we’re going to give you the money, we want a piece of the action for the American taxpayer.’”
What to Expect for Markets
- Short term: Expect heightened volatility in LEU, BWXT, and OKLO as news on DOE contracts, regulatory milestones, or earnings emerges.
- Catalysts: DOE budget announcements, reactor licensing progress, and broader industrial policy updates could cause surges—or setbacks.
- Macro context: These nuclear plays may attract both “playbook” investors (seeking policy momentum) and responsible growth funds eyeing energy security and innovation.
Trump’s industrial policy is igniting renewed momentum for U.S. nuclear energy—backed by billions in government funding and strategic partnerships. LEU offers a defensive stake in a critical supply chain, BWXT balances production depth with infrastructure reach, while OKLO represents a speculative entry into the SMR frontier. Investors with appetite for policy-driven growth may find these stocks compelling—but they come wrapped in financial, regulatory, and governance questions that demand caution and clear-eyed due diligence.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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