Nano Nuclear Energy (NASDAQ: NNE) is up 23% in the past month, but more recent price action has been tilted more on the bearish side. That said, if the broader nuclear energy sector keeps surging, NNE may still continue surging.
The company just named Rick Perry, the former U.S. Secretary of Energy and Texas Governor, as its Executive Advisory Board Chairman. Nano Nuclear is racing to commercialize its nuclear microreactor tech and expand its clean energy sector footprint. Perry’s appointment is bringing much-needed regulatory know-how on that front.
On top of that, Nano Nuclear raised $105 million in a private placement, and its cash reserves now stand at $210 million.
According to our chief analyst, CJ, here at MoneyMorning, “Nano Nuclear Energy is emerging as a foundational play in the AI infrastructure buildout.” He pointed out that its reactor program is seeing solid momentum with approvals from the Department of Energy.
The recent cash infusion and the broader market enthusiasm could take this stock much higher. As CJ pointed out, the sector is getting a lot of attention after Constellation Energy signed a deal with Meta Platforms. Nuclear is now seen as essential for powering the always-on, high-density compute required by AI infrastructure.
NNE stock is holding above $30 right now, and if it breaks below that, you could see more downside risk. The upside and downside potential mostly depend on how the broader industry is going to pan out.
There’s a good chance a big company in the space will sign another contract or post solid results, and all nuclear stocks will surge again in tandem. If that happens, NNE could make a move toward its consensus price target of $47.5.
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