Nuclear Power's Next Act: How Chris Wright's Policy Shift Could Spark a Boom in Energy Stocks

The U.S. energy landscape is undergoing a seismic shift, and investors who ignore the signals from Energy Secretary Chris Wright's recent policy testimonies and budget proposals are leaving money on the table. Wright's focus on “climate realism” and his push to prioritize nuclear and fossil fuels over renewables isn't just about politics—it's a roadmap for where capital should flow. Let's break down the opportunities.

The Nuclear Play: Tax Credits, Funding, and the “AI Race”

Wright's FY2026 budget request is a goldmine for nuclear innovation. The DOE's $1.37 billion allocation for the Office of Nuclear Energy—while 24% less than prior years—still funds critical programs like the Advanced Reactor Demonstration Program (ARDP) and high-assay low-enriched uranium (HALEU) fuel development. But the real kicker is the Loan Programs Office's $750 million in new credit subsidies for small modular reactors (SMRs). This isn't just about energy—it's about powering AI and high-tech industries, which Wright calls the “Manhattan Project of our time.”

- BWX Technologies (BWXT): A key supplier of nuclear components, BWX is positioned to benefit from SMR deployment. Its stock has risen 25% in the past year as SMR partnerships (e.g., with Westinghouse) gain traction.
- Uranium miners like Cameco (CCJ): With nuclear power's resurgence, uranium demand could spike. CCJ's stock has lagged, but a uranium price rebound could ignite a rally.

Renewables: The Narrow Path to Profitability

Wright's “Green New Scam” rhetoric has slashed renewable funding—EERE's budget is down 74%—but don't write off renewables entirely. The DOE's FY2026 plan still funds geothermal, hydropower, and biofuels, areas Wright deems “real” renewables. Additionally, the Infrastructure Investment and Jobs Act (IIJA)'s lingering $1.4 billion in clean energy grants could favor firms with narrow, shovel-ready projects.

- Geothermal plays like Ormat Technologies (ORA): Geothermal energy is base-load and land-efficient. Ormat's stock, down 15% in the past year, could rebound if DOE grants target grid-stabilizing projects.
- Grid resilience firms like WEC Energy Group (WEC): Wright's push for grid modernization benefits utilities investing in microgrids and transmission upgrades. WEC's stock has outperformed the S&P 500 by 10% in 2025.

The Reconciliation Wildcard: Tax Credits and Timing

Wright's “climate realism” clashes with Senate Democrats' climate agenda, creating a tax credit battleground. The Inflation Reduction Act's clean energy tax credits (e.g., for wind/solar) are still on the books, but Wright's team is lobbying to redirect those funds to nuclear. Investors should monitor reconciliation debates: if nuclear gets a carve-out, SMR stocks like Westinghouse (a subsidiary of Brookfield Business Partners) could soar.

Investment Action Plan

1. Go nuclear first: Buy BWXT and CCJ. Both are cheap relative to their growth prospects.
2. Dip toes into renewables: Focus on geothermal (ORA) and grid resilience (WEC). Avoid broad wind/solar ETFs like ICLN—Wright's cuts are no joke.
3. Watch for DOE grant winners: The $1.4 billion in IIJA funds will flow to companies with strong government ties. Follow DOE's Clean Energy Demonstrations program announcements.

The Bottom Line

Wright's policies are a gift for investors who can navigate the pivot to nuclear. Even in a world of slashed renewables budgets, smart picks in SMRs, uranium, and grid infrastructure can deliver outsized returns. This isn't just about energy—it's about betting on the technologies that will power the next era of American innovation.

Don't miss this once-in-a-decade opportunity to position your portfolio for the energy future Wright is building.

Disclaimer: Past performance does not guarantee future results. Consult your financial advisor before making investment decisions.