Nano Nuclear: Is Now the Time to Invest?

Between a skyrocketing demand for power, concerns about climate change, and an ever-dwindling supply of fossil fuels, many people are looking to nuclear power as the way forward.

The optimism surrounding nuclear energy has led to a new crop of nuclear start-ups. Each of these companies claims that it has what it takes to rise above its competitors. This means that if you're an investor, it can be hard to separate bluster from genuine potential.

Today, I'll take a closer look at one of these young, confident start-ups: Nano Nuclear Energy (NASDAQ: NNE).

What is Nano Nuclear?

Here are a few facts about Nano Nuclear Energy:

• The company was founded in 2022.
• It focuses on small, portable microreactors that can be used in off-grid locations.
• Its business model also includes the manufacturing and transport of nuclear fuel.

Notably, in October 2025, Nano announced an upcoming feasibility study of its Kronos microreactors at the University of Illinois Urbana-Champaign. The study aims to determine whether the reactors could be commercially viable.

Potential upside

There are a few reasons that Nano might be a good buy.

There's a huge demand for (nuclear) power

The nuclear sector is seeing a tremendous increase in investor interest, largely due to the rise of AI and data centers. Tech giants are already signing nuclear contracts.

For example, Constellation Energy is restarting one of the reactors at the Three Mile Island nuclear power plant, and Microsoft has committed to purchasing all energy generated for two decades. Meta Platforms has agreed to purchase all "clean energy attributes" of Clinton Clean Energy Center, another Constellation Energy property, from 2027 to 2047.

It's working on a DOE contract

In 2024, the U.S. Department of Energy's Low-Enriched Uranium (LEU) Enrichment Acquisition program awarded six contracts to further the development of a domestic nuclear fuel pipeline.

One of those contracts was awarded to LIS Technologies, a company focused on laser uranium enrichment. LIS Technologies named Nano Nuclear as a key subcontractor.

LIS Technologies isn't just another nuclear start-up. Its co-founder, nuclear engineer Jeff Eerkens, is the inventor of the Condensation Repression Isotope Separation by Laser Activation (CRISLA) process of uranium enrichment (a key part of making fuel for nuclear reactors). He is considered the father of laser enrichment, and I think it's a vote of confidence that his company picked Nano Nuclear for this project.

It has had no trouble generating funding

Although Nano has not brought a product to market, growing investor confidence and capital boosts have provided it with enough funding for ongoing projects.

In June 2025, Nano had cash and cash equivalents totaling $210 million. In October 2025, it completed a $400 million private placement. In the year ended in June, Nano Nuclear had a loss of about $34 million. If that rate stays constant, the company has enough cash to stay afloat for many years.

Risks and potential downsides

There are several good reasons to consider investing in Nano, but there are also significant potential risks that no would-be investor should ignore.

It's not generating revenue yet

Nano is a "pre-revenue" company. Because it's still in the research and development phase, it hasn't yet begun generating money. As of now, there's no definite revenue timeline, either.

Image source: Getty Images.

Nuclear power companies have to overcome some high hurdles. The U.S. Nuclear Regulatory Commission (NRC) oversees innovation in the nuclear sector, and full design certification can take years. For example, in July 2022, NuScale's Voygr became the first small modular reactor (SMR) design certified for use in the United States via an NRC decision. That was five years after it accepted NuScale's design certification application.

There's no guaranteed timeline for SMR design certification, which means there's also no guaranteed timeline for Nano's revenue generation. Microreactors are a subset of SMRs.

It might be overvalued

Accurately valuing a pre-revenue company is difficult. The most accepted metrics for valuing a company are price-to-earnings (P/E) and price-to-sales (P/S) ratios, and right now, Nano has neither sales nor earnings.

If you invest now and Nano is overvalued, its stock price may plummet when it fails to achieve projected growth.

The verdict

Between its DOE contract, ample funding, and pending reactor feasibility study, Nano Nuclear has a potential edge. However, unless you're looking for a long-term, speculative investment opportunity, it's too early to make a call.

This doesn't mean that you should dismiss Nano Nuclear as an investment altogether. As of now, its future is uncertain, but it's definitely a company to watch.

Sarah Edwards has no positions in the stocks mentioned in this article. The Motley Fool has positions in and recommends Constellation Energy, Meta Platforms, and Microsoft. The Motley Fool recommends NuScale Power and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.