Nano Nuclear Energy (NNE 3.92%) stock, a start-up manufacturer of small modular (nuclear) power reactors, gained 4.4% through 11:22 a.m. ET Wednesday.
A couple of positive developments for nuclear investors may explain why.
Image source: Getty Images.
BofA loves Oklo stock
First, Bank of America upgraded Nano Nuclear rival Oklo (OKLO 5.05%) to buy this morning. BofA analyst Dimple Gosai referenced Oklo's new contract with Meta (META 2.52%), under which Meta will pay in advance for power that Oklo will later produce, giving Oklo the cash it needs to build the SMR reactors to supply the power.
Gosai argued that nuclear investors have been looking for "tangible evidence advanced nuclear is moving from concept to execution," and says "this agreement provides exactly that."
Separately, over in Japan, "the world's largest nuclear power plant" just reopened for business. For the first time since the 2011 Fukushima nuclear disaster, Fukushima operator Tokyo Electric Power Company Holdings (TEPCO) has restarted reactor No. 6 at its Kashiwazaki-Kariwa nuclear power plant.
(In fact, as ABC News points out, Japan has quietly reopened no fewer than 14 separate reactors in recent years. It also has six other reactors at Kashiwazaki-Kariwa that may also be restarting.)
NASDAQ: NNE
Key Data Points
Is Nano Nuclear stock a buy?
What does all this have to do with Nano? Well, reopening a nuclear plant -- even in "quake-prone" Japan -- highlights the rising need for nuclear power for data centers. Nano Nuclear reactors should benefit from this demand, especially as they're "advanced nuclear" designs -- better, safer, and smaller in size. The Oklo upgrade also indicates they're becoming more popular.
I'd still prefer to see Nano Nuclear earn some profit before investing in it. Unfortunately, according to analysts polled by S&P Global Market Intelligence, that won't happen before 2033 at the earliest.
