Energy Fuels (UUUU.US) led the gains in the nuclear technology sector on Wednesday, with its stock price surging 14.2% to hit a nearly 15-year high. This rally followed the US Department of Energy's announcement of a new initiative aimed at building a domestic nuclear fuel supply chain. Other nuclear technology and uranium stocks also performed strongly: Oklo (OKLO.US) rose 10.6%, Denison Mines (DNN.US) climbed 9.3%, NexGen Energy (NXE.US) advanced 9.1%, Centrus Energy (LEU.US) increased 7.9%, NuScale Power (SMR.US) gained 6.4%, Cameco (CCJ.US) was up 6.1%, Uranium Energy (UEC.US) rose 5.2%, Lightbridge (LTBR.US) added 3.9%, and Ur-Energy (URG.US) increased 3.3%.
The Department of Energy stated it is currently soliciting input from US states to gauge their interest in hosting development sites for the entire nuclear fuel lifecycle, which includes nuclear waste storage and spent fuel reprocessing. The agency indicated that these sites, designated as "Nuclear Lifecycle Innovation Campuses," could receive federal support for deploying advanced nuclear reactors and associated data centers; additionally, these campuses could also conduct uranium enrichment. This strategy marks a significant policy shift, aiming to address a challenge that has plagued the US nuclear industry for decades: how to manage radioactive waste.
The Department of Energy further explained that it is seeking methods to prioritize the use of private and state government capital, relying on "targeted, conditional, and time-limited" federal support. On the same day, Energy Fuels received a rating upgrade from Roth Capital, moving from "Sell" to "Neutral," with its price target raised from $13 to $15.50.
The firm believes that near-term catalysts and market sentiment should lean optimistic, and the rising spot price of uranium could offset any short-term valuation adjustments. Roth pointed out that the uranium spot price has finally broken through $80 per pound at a faster pace. The firm continues to project that the spot price will reach $100 per pound by mid-2026, with potential for a significant breakout above $100, although this may depend on the discipline of uranium inventory holders.