In 1979, the Three Mile Island nuclear power plant suffered a partial nuclear meltdown. Although it was successfully contained and did not turn into a Chernobyl type of disaster, it scared enough people to shy away from nuclear power to further explore solar and wind power. A series of rock concerts were organized by Orleans founder and guitarist John Hall (later Rep. John Hall D-NY) under the moniker “No Nukes”, featuring Bruce Springsteen, Crosby, Stills, & Nash, James Taylor, Bonnie Raitt, The Doobie Brothers, Jackson Browne, Chaka Khan, Tom Petty, and Ry Cooder sold out at Madison Square Garden and a live album and documentary film also fueled nuclear energy antipathy.
Nearly 50 years later, solar and wind have gobbled up countless billions of dollars in R&D, leaving environmental hazards to wildlife and an inconsistency that is incompatible for today’s power demands, especially from AI and their data centers. Nuclear has come back with a vengeance, and Wall Street has taken note. A joint directive from several governors and President Trump to PJM Interconnection urged the power grid operator to demand that data centers incur the cost for their own power generation. In response, Meta Platforms (NASDAQ: META | META Price Prediction) announced that it was paying nuclear reactor designer Oklo, Inc. (NYSE: OKLO) an up front fee of $25 million for phase 1 of its forthcoming Ohio reactor.
The key to nuclear power is through radioactive isotopes, production of which Oklo is a major player in the industry. However, isotope applications are not limited solely to nuclear energy; they are also used in the production of medical diagnostics and oncology, semiconductor manufacturing, oil and gas monitoring, and other applications. Several companies in the sector that also bear watching are:
- ASP Isotopes, Inc. (NASDAQ: ASPI)
- Lantheus Holdings, Inc. (NASDAQ: LNTH)
- BWX Technologies, Inc. (NYSE: BWXT)
Oklo, Inc.
An Oklo SMR is depicted.
Oklo specializes in designing Small Modular Reactors (SMR). It produces its isotopes through acquired subsidiary Atomic Alchemy via its Versatile Isotope Production Reactors (VIPR). It is a nuclear fuel recycling process and fast reactor technology that produces over 40 types of isotopes to supply power plants, medical technologies, and non-destructive testing.
Oklo has given guidance that it expects its isotope business to commence revenue generation as early as Q1 2026. In the wake of the Meta announcement, Bank of America upgraded Oklo to “buy” with a 12-month price target upgrade from $111 to $127.
ASP Isotopes, Inc.
ASP Isotopes are used for medical diagnostics and oncology.
ASP Isotopes has its own proprietary isotope technology to construct, commission, and produce isotopes for nuclear medicine, therapeutics, quantum computing and semiconductor manufacturing, and, ironically for the green energy sector. Although its offices are in Washington, DC, ASP’s plants are located in South Africa.
Analyst opinions on ASP are mixed. Some bulls, impressed by the company’s +857% revenue growth for 2024, think that the company has considerable upside, and give ASPI a “strong buy” rating. Bears cite that ASPI has undergone considerable insider selling and has yet to post actual earnings and only net losses as their justification for “sell” ratings.
Lantheus Holdings, Inc.
Lantheus supplies isotopes to both Siemens and GE Healthcare for imaging technologies.
Boasting offices in MA, NJ, Canada and Sweden, Lantheus Holdings is ensconced in the medical sector and is the parent of Lantheus Medical Imaging, EXINI Diagnostics AB, and Progenics Pharmaceuticals. The company also produces isotopes exclusively for the healthcare industry. It cites Novartis, Bayer, Regeron, Siemens Healthineers, and GE Healthcare as strategic partners and customers.
Lantheus Holdings has an analysts consensus rating of “moderate buy” due to some earnings disappointments in the past few quarters. The 12-months price target is $84.00.
BWX Technologies, Inc.
BMXT supplies a range of nuclear components and services to the US government, including those at Lawrence Livermore Labs.
BWX Technologies is focused on nuclear power, and sells fuel and nuclear reactor components.
The company has several separate business units:
- BWXT mPower – handles design, licensing, and manufacturing of its own SMR units.
- BWXT Nuclear Energy – nuclear components as well as engineering, design, construction, inspection and repair services for the nuclear power industry.
- BWXT Nuclear Operations Group – designs and supplies nuclear components and solutions exclusively for the US Government.
- BWXT technical Services Group – this division provides management services for US nuclear and national security operations, including those at nuclear facilities. It is also a management service provider to the US Dept. of Energy, National Nuclear Security Administration, and the Strategic Petroleum Reserve.
The company recently announced it was opening a uranium enrichment facility for US defense requirements. Analyst sentiment is mostly “buy” or “strong buy”, citing BMXT’s monopoly on certain US government contracts and a decade-long history of dividend increases. Those not so bullish reference its high P/E ratio and near technical overbought price region. 12-year price target average is $226 with a high of $285.
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