Shares of small modular (nuclear) reactor-builder Nano Nuclear Energy (NNE +7.30%) stock jumped 9.1% through 12:30 p.m. ET Tuesday -- but not in reaction to anything Nano did.
Instead, shares of this nuclear power stock appear to be reacting to some other nuclear news overseas.
Image source: Getty Images.
Good news for Rolls-Royce... is good news for Nano Nuclear Energy stock, too?
The nuclear power sector was red hot last year, but is cooling off as investors grow leery of the AI growth story. Hope springs eternal, however, and nuke stocks got some good news yesterday when World Nuclear News reported Britain's "National Wealth Fund" is spending $805 million on small modular reactors (SMRs) from Rolls-Royce's (RYCEY +1.72%) SMR subsidiary. And that's just to start.
NWF is a U.K. public financial institution launched in 2024 with the goal of investing $37.7 billion in clean energy and industrial growth projects. This week's $805 million will be spent to help another government-owned organization, "Great British Energy-Nuclear," buy three Rolls-Royce SMRs, each rated at 470 MWe of power output, and set them up on the island of Anglesey, North Wales.
NASDAQ: NNE
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Why is this good news for Nano Nuclear?
As a matter of fact, this may not be good news for Nano, despite investors apparently thinking it is. At first glance, this is a story of Britain embracing nuclear power in general, and small modular reactors in particular, raising hopes the U.K. will buy some from Nano.
As a UK-initiated project run through a U.K.-controlled organization that places its first order with a favored U.K. contractor, however... well, I suspect this actually bodes poorly for American Nano's chances of making SMR sales in the U.K.
I suspect it's a better reason to sell Nano Nuclear stock than to buy it.
