This Nuclear Stock Is Down 30% This Year -- Here's 1 Reason It Could Be a Screaming Buy Right Now
Key Points
Nano Nuclear Energy designs microreactors.
It doesn't yet have regulatory approval, but a recent acquisition will help it generate revenue.
Nano Nuclear Energy (NASDAQ: NNE) is a company that, as its name suggests, wants to build a very tiny nuclear reactor, so tiny it could fit on a semi-truck. If you've ever seen how much land a traditional nuclear power plant takes up, then you, too, might be amazed at the kind of Honey, I Shrunk the Kids feat Nano is trying to pull off.
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Like other nuclear energy companies making small and microreactors -- Oklo, for instance -- Nano is currently operating in the uncomfortably slow beginning stages of pre-regulatory existence. There's no telling when Nano will get the NRC's blessing to commercialize its reactors, but most estimates point to a two-year waiting period before Nano's revenue growth becomes something.
Data by YCharts.
Nano stock has been trading lower on the year, but a recent $13 million acquisition might give this pre-revenue nuclear stock a bright star in its immediate future.
I'm talking, of course, about Secured Transportation Services (STS), a profitable company specializing in the conveying of nuclear and radioactive materials, which Nano acquired at the end of May 2026. Considering that Nano wants to transport its reactors, as well as participate in the fuel supply chain, this move was a very smart first step toward building that broader nuclear ecosystem.
With STS, Nano can start generating revenue, adding a little cushion to its already robust liquidity of $569 million.
Even so, there's no guarantee that Nano will succeed in commercializing its reactors; even if it does, scaling production will be costly and lengthy. But as power demands from AI data centers escalate, the market opportunity for Nano may be large enough to overcome today's risks.
I wouldn't recommend Nano to the risk-averse, but those with a greater tolerance for volatility might want to consider a small position for the long-term gains it could deliver.
Steven Porrello has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.