On surface level, the narrative for Nano Nuclear Energy (NASDAQ:NNE) — which specifically specializes in a subsect of small modular reactors (SMRs) called microreactors — doesn’t appear compelling. Sure, prior to the Trump administration taking the helm, nuclear energy was riding a wave of optimism. Unfortunately, the subsequent tariffs and trade wars against key economic partners have hurt the sector, clouding entities like NNE stock.
Investors only need to look to President Trump’s contentious relationship with Canada for a culprit. Thanks to the high-level tug-of-war, uranium has found itself in the crosshairs of a previously unimaginable geopolitical conflict. Because nuclear power plants receive a significant volume of uranium from Canada, heightened tensions with our northern neighbor exacerbates supply chain complexities.
Notably, industry experts have sounded the alarm, warning that the White House’s economic policies threaten the U.S. nuclear energy revival. Fundamentally, one of the other major concerns regarding the critical commodity is the lack of alternative sourcing. The biggest player in the uranium market is Kazakhstan. Further, Uzbekistan, Russia and China also contribute to global production — countries which aren’t exactly friendly to American or western interests.
Investors only need to look at the charts to recognize the deep-rooted anxieties. On a year-to-date basis, uranium production giant Cameco (NYSE:CCJ) fell more than 16%. Other nuclear players have also struggled in 2025. However, during the same frame, NNE stock gained just under 21%.
It raises the obvious question: what gives?
While the political backdrop represents a significant distraction, NNE stock can still find its way northward. That’s because the underlying company enjoys a structural advantage.
According to Energy Monitor, SMRs are designed to require less fuel than traditional reactors. “Power plants equipped with SMRs are designed to refuel every 3–7 years, compared to 1–2 years for conventional plants. Some SMRs are even designed to operate for up to 30 years without refuelling.”
To be clear, some SMRs require higher uranium enrichment levels, meaning that the trade war will still impact this segment of the nuclear energy industry. But because Nano Nuclear specializes in microreactors — which are more compact than standard SMRs — it’s possible that the company’s power plants will be holistically more efficient.
Speculators willing to take a shot on NNE stock may consider the equity’s rising short interest. Per Fintel, NNE’s short interest stands at nearly 19% of its float. What’s more, this metric has been steadily rising since the company’s initial public offering last May.
Ordinarily, rising short interest is a negative sign, indicative of bearish sentiment. However, as traders bet against the security, an unexpected positive movement could spark what’s known as a short squeeze. This phenomenon occurs because the bears find themselves on the wrong side of the trade.
For the bears to exit their position, they must buy to close (since a short position starts from the initial borrowing of securities to be sold short). The thing about a short squeeze is that the bears who cut their losses the quickest exit with the least amount of pain incurred.
To note, not all high short interest stocks are guaranteed to spark a short squeeze. Still, if you’re the gambling type, it’s worth keeping tabs on NNE stock.
