The Nuclear Renaissance: Why Small Modular Reactors Are the Next Big Energy Play Under Trump's Regulatory Reforms

Isaac LaneFriday, May 23, 2025 3:29 pm ET
16min read

The Trump administration's sweeping regulatory reforms have ignited a new era for nuclear energy, positioning small modular reactors (SMRs) as the linchpin of a modern, resilient energy infrastructure. With streamlined licensing, federal land-use prioritization, and urgent calls to address surging electricity demands from artificial intelligence and defense systems,

are poised to deliver outsized returns for investors. Here's why this is the moment to act.

The Tailwind: Regulatory Reforms Fueling a Nuclear Breakthrough

Under President Trump's 2025 executive orders, the Nuclear Regulatory Commission (NRC) is now mandated to fast-track approvals for new reactors, including SMRs, with licensing timelines slashed to 18–25 months—a dramatic improvement from the decade-long slog of conventional plants. The Defense Production Act has been invoked to prioritize domestic uranium mining and SMR component manufacturing, reducing reliance on Russian and Chinese supply chains. Meanwhile, federal land is being opened to nuclear projects, directly aligning with the energy needs of hyperscalers like Google and Amazon, whose AI data centers require reliable, zero-carbon power.

Why SMRs Are the Golden Ticket

SMRs offer unparalleled advantages over traditional nuclear plants:1. Scalability: Deployable in 1–300 MW configurations to match demand, from powering remote towns to fueling AI supercomputers.2. Cost Efficiency: Factory-built designs reduce construction risks and enable economies of scale. Once mass production kicks in, costs could drop to $1.5–2/W, rivaling renewables.3. Safety: Passive cooling systems and walk-away safety features eliminate meltdown risks, easing public and regulatory concerns.4. Flexibility: Load-following designs (e.g., TerraPower's Natrium reactor) can complement solar/wind grids, offering 24/7 baseload power.

Top Investment Plays: Companies Leading the Charge

1. BWX Technologies (BWXT)

  • Why: Parent company of NuScale Power, the industry leader in SMR development. NuScale's 60-MW modules are already under review by the NRC, with the first plant expected online by 2027.
  • BWXT Trend
    Network error, please try to refresh
  • Catalyst: Trump's reforms accelerate licensing, while BWX's $900M DOE grant for SMR construction ensures project momentum.

2. Uranium Energy Corp (UEC)

  • Why: Domestic uranium mining is critical to fuel SMRs. UEC's Texas-based operations are poised to benefit from the NRC's relaxed radiation standards and federal land-use policies.
  • Catalyst: Rising uranium demand from SMRs and revived nuclear plant restarts (e.g., Three Mile Island) could push prices above $40/lb in 2025.

3. Exelon (EXC) & Dominion Energy (D)

  • Why: Utilities are rushing to partner with SMR developers to meet state clean-energy mandates. Exelon's stake in X-Energy's Long Mott plant and Dominion's ties to TerraPower's Natrium reactor position them as grid-scale SMR integrators.
  • EXC, D, SMR Estimate EPS, Estimate Revenue
  • Catalyst: State-level PPAs (Power Purchase Agreements) for SMR projects are nearing finalization, locking in long-term revenue streams.

The Risks? Manageable with This Tailwind

Critics cite SMRs' high upfront costs and regulatory risks. But Trump's reforms address both:- Costs: DOE loan guarantees and NRC's Generic Environmental Impact Statements (GEIS) cut review costs by 20–45%.- Safety: NRC's new radiation standards, while controversial, align with global norms, easing deployment.- Supply Chains: The Defense Production Act mandates domestic HALEU fuel production, mitigating bottlenecks.

Act Now: The SMR Inflection Point Is Here

The convergence of policy, technology, and market demand has created a once-in-a-generation opportunity. SMRs are no longer a distant dream—they're shovel-ready projects with clear regulatory pathways and multi-billion-dollar funding. For investors, this is the moment to:1. Buy BWXT ahead of NuScale's NRC certification.2. Hedge with UEC as uranium demand soars.3. Diversify into utility stocks (EXC/D) for steady SMR-linked growth.

The clock is ticking. With AI-driven energy demand set to jump 78% by 2050, SMRs are the only scalable, zero-emission solution ready to meet it. Don't miss this chance to profit from the next energy revolution.