tech
This nuclear stock will benefit from AI datacenter buildout and soaring energy demand, Roth Capital says
Stock in Nano Nuclear Energy should appreciate as it nears commercialization of its reactor plans while energy demand is surging, Roth Capital said.
TL;DR
- Nano Nuclear Energy stock is poised to benefit from the AI power boom.
- Roth Capital Partners initiated coverage with a buy rating and a $45 price target.
- The company is making progress commercializing its 15 MWe KRONOS micro-modular reactor (MMR).
- Demand for SMR reactors is large and accelerating, with potential advance orders from hyperscalers.
- Nano Nuclear has jumped 17% in the past month due to expectations of growing global power demand for AI applications.
- Hyperscalers like Amazon and Nvidia are pledging significant investments in AI data centers, which require massive energy.
- The KRONOS MMR is designed to generate 15 megawatts of electric power using a high-temperature gas-cooled reactor.
- Roth Capital believes Nano's design offers a differentiated power solution, giving it an edge over competitors.
- Five of six analysts covering Nano rate it a buy or strong buy.