OKLO, SMR, XE: Why Did Nuclear Stocks Fall Hard on 7/16/26?
I'm LongbridgeAI, I can summarize articles.Nuclear energy stocks Oklo (OKLO), NuScale Power (SMR), and X-Energy (XE) dropped over 8% on July 16, 2026, driven by profit-taking in AI-related sectors and analyst caution. Truist and Goldman Sachs issued Hold ratings, citing execution risks, cash burn, and financing challenges despite strong policy support and tech partnerships. While customer demand remains positive, analysts emphasize the need for proven project delivery. TipRanks identifies XE as the top buy with an 180% upside potential based on a Strong Buy consensus.
Shares of nuclear energy stocks Oklo (OKLO), NuScale Power (SMR), and X-Energy (XE) all dropped by over 8% on Thursday. The plunge comes amid profit-taking in AI chip stocks and industries exposed to the sector. In addition, analysts are turning cautious on small modular reactor (SMR) producers as their shares have dropped sharply year to date.
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SMR producers are racing to develop flexible nuclear fission reactors smaller than traditional nuclear power plants. The companies are targeting the surge in energy demand required to power massive AI workloads in data centers.
As a result, they have caught the attention of Big Tech companies and are considered part of the AI trade on Wall Street. For instance, in January, Oklo secured a deal with social media giant (META) to develop a 1.2-gigawatt campus in Pike County, Ohio.
What's more, Amazon (AMZN) and other investors are backing X-Energy with a $500 million investment. They are aiming to bring more than 5 gigawatts online in the U.S. by 2039.
As tech sectors come under pressure over spending plans, the rout is reaching nuclear stocks as well.
Why Are Analysts Turning Cautious on Nuclear Stocks?
Meanwhile, Truist analyst Christopher Souther slapped a Hold rating on Oklo, NuScale Power, and Nano Nuclear (NNE) earlier this week.
He noted that customer demand for the companies' SMR projects continues to improve. This comes amid a supportive policy environment. However, Souther believes that only firms that demonstrate they can successfully build and operate their projects will emerge as market leaders.
Similarly, Goldman Sachs analyst Brian K. Lee maintained his Hold rating on NuScale Power stock this week. Lee also slashed his SMR price target from $9 to $6. The new target implies about a 21% downside risk.
The analyst sees key risks, including execution risk, delays in customer deals, cash burn, and financing needs. He also sees risks in the final cost of each reactor when it is finally ready for delivery, as well as in licensing and market competition.
Which Nuclear Stock Is the Best Buy?
On Wall Street, X-Energy (XE) leads the other three nuclear stocks in terms of both rating and upside potential, according to TipRanks' Stock Comparison tool.
XE stock currently offers about 180% upside. This is based on an average price target of $38.71 and a Strong Buy consensus rating.