The nuclear energy industry may become the next investment target for the Trump administration

Analysts point out that the Trump administration in the United States is pushing to take stakes in companies across various industries, and the next potential target may be the nuclear energy sector.

The Trump administration has already announced investment agreements with Intel and rare earth producer MP Materials, both of which involve government support for large-scale domestic manufacturing projects.

In July this year, MP Materials announced that the Pentagon would become its largest shareholder, causing the company's stock price to surge by 50% in a single day. After the U.S. government announced its investment in the struggling Intel, the company's stock price rose by 5%.

After reaching a deal with Intel earlier this month, President Trump and members of his administration hinted that this would be the beginning of a broader investment strategy.

A team led by Compass Point analyst Whitney Stanco stated in a report that the U.S. Department of Energy recently established a new Nuclear Fuel Alliance, paving the way for the Trump administration to invest in enterprises with the aim of building a domestic enriched uranium supply system. Enriched uranium is a key fuel required for nuclear power generation.

Stanco wrote: "Given the U.S. nuclear fuel industry's interest in the approximately $3.4 billion in federal funding allocated during the Biden era, we believe it may become a target for similar investment deals by the Trump administration in the future."

In the coming weeks, the Department of Energy's Office of Nuclear Energy is expected to work with industry participants to identify relevant companies and long-term goals.

The Russia-Ukraine conflict has raised national security concerns regarding nuclear energy, as Russia is the world's largest supplier of uranium.

According to data from the U.S. Office of Nuclear Energy, Russia possesses about 44% of the world's uranium enrichment capacity, and approximately 35% of the U.S.'s nuclear fuel imports come from Russia.

Meanwhile, the surge in energy demand driven by the artificial intelligence (AI) boom has also brought more attention to nuclear energy, with major tech companies partnering with nuclear energy suppliers, putting the industry in the spotlight.

This week, Bank of America included next-generation small modular reactor (SMR) builder Oklo in its ratings for the first time and gave it a "Buy" rating.

The bank wrote: "With the support of the Department of Energy and data center operators, nuclear energy is regaining momentum, and Oklo is well-positioned to meet the growing energy demand from AI."

Over the past year, Oklo's stock price has soared by more than 1000%, as investors bet that nuclear energy will become part of the AI-themed trade.