Nuclear Power's Rise in the US-UK Trade Deal

While headlines focus on diplomatic handshakes, the $42 billion tech investment surge and new trade agreements have created a winner that most investors are missing: nuclear energy.

The numbers tell a story that cuts through the noise.

Since June's trade deal announcement, the VanEck Uranium & Nuclear ETF (NLR) has surged 30.98%, nearly double the gains of aerospace and defense funds.

This isn't a coincidence. It's the market pricing in a fundamental shift that smart money already sees coming.

The UK-US Tech Prosperity Deal includes explicit provisions for civil nuclear energy cooperation, with both nations committing to “joint research schemes” for fusion energy and advanced reactor development

Microsoft's $30 billion commitment is about building AI infrastructure that needs something most renewable energy can't provide: constant, reliable power. When you're running 23,000 NVIDIA GPUs in a supercomputer, solar panels don't cut it when the sun goes down.

Microsoft, OpenAI, and other tech giants are betting billions on AI data centers, and they all need the same thing: baseload power that works 24/7, 365 days a year.

This creates a "structural demand catalyst." Unlike cyclical commodity plays that rise and fall with economic sentiment, AI infrastructure represents permanent electricity demand that will only grow. Nuclear is the only proven technology that can meet this need at scale.

The trade deal's steel tariff provisions get media attention, but the real action is in advanced reactor development.

While the SPDR S&P Aerospace & Defense ETF (XAR) gained 16.86% and the iShares U.S. Aerospace & Defense ETF (ITA) rose 13.27%, VanEck Uranium & Nuclear ETF (NLR) 30.98% surge reflects investor recognition of long-term structural advantages.

The UK has committed to joint research on small modular reactors (SMRs) with the US, while simultaneously creating regulatory pathways for deployment.

VanEck Uranium & Nuclear ETF (NLR) offers comprehensive exposure with $2.65 billion in assets and 50.33% YTD returns.

NLR ETF reached a YTD high of $130.87 on September 15th, 2025.

Key Investment Metrics

Top holdings include Uranium Energy Corp (7.49%), Cameco Corp (7.21%), and emerging SMR developer Oklo Inc (5.01%).

This creates a supply squeeze just as demand from AI infrastructure and new reactor projects accelerates.

Look past the quarterly noise, and nuclear energy's investment thesis becomes compelling.

The UK-US trade deal removes regulatory barriers while creating joint development frameworks. More importantly, it signals political commitment to nuclear technology as a strategic asset.

The North East England AI Growth Zone shows this integration.

Officials chose this region partly for its proximity to existing nuclear facilities and planned SMR sites.

The infrastructure demands of AI development require the energy density that only nuclear provides.Uranium miners benefit from supply constraints and rising demand.

Reactor manufacturers gain from new plant construction and SMR deployment.

Utilities with nuclear fleets suddenly find their baseload capacity more valuable in an AI-driven economy.

The monthly analysis reveals key inflection points that align with major nuclear energy developments:

Nuclear investment isn't without challenges.

Regulatory complexity remains high, and public perception issues persist despite improving safety records.

Construction costs for traditional plants continue escalating, though SMR technology promises to address this.

The steel tariff situation also creates headwinds. Nuclear plant construction requires massive steel inputs, and 25% tariffs on imported steel increase project costs. However, the trade deal's provisions for domestic steel production could eventually mitigate this issue.

Trade agreements often face political opposition, and changing administrations could alter priorities.

This isn't just about nuclear energy or trade deals. It's about positioning for the infrastructure requirements of the digital economy's next phase.

AI development, data center expansion, and industrial automation all demand reliable electricity in quantities that dwarf current consumption.

Nuclear technology provides the only scalable solution that works regardless of weather, time of day, or season.

The UK-US trade deal provides the regulatory framework and political support needed for this transition. The $42 billion in tech investments creates immediate demand.

Together, they form a catalyst that could drive nuclear energy returns for the next decade.

Smart investors position ahead of obvious trends and let fundamentals work in their favor. Your choice?

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