Why Shares of Nano Nuclear Energy Stock Popped Almost 40% This Week

Key Points

• Nuclear energy stocks are soaring because of a proposed technology deal between the U.S. and U.K. governments.

• Nano Nuclear is selling one of its reactor designs.

• The stock is wildly overvalued as a prerevenue company.

• 10 stocks we like better than Nano Nuclear Energy ›

Shares of Nano Nuclear Energy (NASDAQ: NNE) rose as much as 40% this week, according to data from S&P Global Market Intelligence. The microreactor company trying to innovate in nuclear energy technology is rising alongside the entire nuclear sector in reaction to a proposed sale of one of its reactor designs to a company in the United Kingdom.

At 2 p.m. ET on Friday, Sept. 19, shares of Nano Nuclear Energy stock were up 39.4% this week. Here's why.

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Government announcements and a licensing contract

Nuclear energy stocks have seen a resurgence in 2025. Nano Nuclear shares are up close to 100% year to date, while other stocks -- such as Oklo, up 500% -- have performed even better.

There has been a lot of news driving these share prices higher. This week, we have two announcements driving Nano Nuclear's share price into the stratosphere, one from the U.S. and U.K. governments and one from the company itself.

First, the United States and United Kingdom signed a partnership agreement to spend boatloads of money on new technologies such as artificial intelligence, quantum computing, and nuclear energy. Even though Nano Nuclear was never mentioned in this announcement, its shares rose on the news. Second, Nano Nuclear signed an agreement with a company in the United Kingdom to sell its ODIN reactor design for a total of $6.2 million. If the technology is ever used, Nano Nuclear will receive low-single-digit royalty payments from the company in a licensing agreement. To be clear, this is a reactor design not currently approved by regulators.

Image source: Getty Images.

Don't fall for the Nano Nuclear hype

Nano Nuclear may earn some one-time revenue from this product announcement, but it is essentially still a prerevenue business. None of its designs have been proven viable or approved by the Nuclear Regulatory Commission. It is unclear whether tiny nuclear reactors even make sense economically.

And yet Nano Nuclear stock is soaring and is trading close to a $2 billion market capitalization. This is a huge jump for a deal that will bring a one-time payment of $6.2 million. The company will remain unprofitable, having burned $32 million in free cash flow over the last 12 months alone. With no timeline for generating any operating revenue -- let along positive cash flow -- Nano Nuclear is a company investors should avoid adding to their portfolios right now.

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Brett Schafer 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.