| Written by Jordan Chussler 
Last week, on the news that Michael Burry, the renowned investor of The Big Short fame, had put options on NVIDIA (NASDAQ: NVDA) and—more significantly—Palantir Technologies (NASDAQ: PLTR), tech stocks sold off amid concerns about record-high valuations and a rapidly expanding AI bubble. As a result, the NASDAQ had its worst week since President Donald Trump’s Liberation Day tariff announcements in April, and the sudden market correction that followed. While Burry’s positions, per his Form 13F filing, include $186.6 million in puts on NVIDIA and $912.1 million in puts on Palantir, are targeting the higher flying AI-leveraged stocks. In fact, Burry’s Palantir position now accounts for more than 66% of Scion Asset Management’s entire $1.381 billion hedge fund. But the market’s selling last week was not isolated solely to AI. Ancillary, pick-and-shovel businesses also took sizable hits, most notably in nuclear stocks. Here’s why, and what investors can expect moving forward. Why Nuclear Stocks Have Been Selling Off By and large, the sell-off in AI stocks adversely impacted a handful of pre-revenue nuclear companies that had been the recipients of what former Federal Reserve Chairman Alan Greenspan might have referred to as irrational exuberance. Look no further than nuclear fuel tech company Lightbridge (NASDAQ: LTBR), which plunged nearly 32% over the past five trading sessions. Preceding the sell-off, shares of LTBR were enjoying a 444% year-to-date (YTD) gain. The company’s proprietary metallic fuel technology has drawn investor attention for its potential to improve reactor efficiency and safety. While still in development, Lightbridge’s partnerships with government labs and its focus on advanced nuclear applications have helped drive speculative interest—even as the fundamentals remain early-stage. Another—Oklo (NYSE: OKLO)— which develops small modular reactors (SMRs), saw its stock give back more than 18% over the past month after running up nearly 700% in 2025 before the sell-off began. Oklo’s flagship product, the Aurora microreactor, is designed to cool via sodium alloy, not water, increasing its applications for nuclear sites situated away from bodies of water. This design allows for more flexible deployment in remote or off-grid areas, expanding its commercial potential beyond traditional reactor sites. While still pre-revenue, the company has attracted investor attention due to early regulatory progress and strategic interest in advanced nuclear solutions. Oklo is expected to provide updates on its licensing roadmap and development pipeline in its upcoming earnings call, which may help stabilize sentiment following the recent sell-off. Meanwhile, Portland-based SMR maker NuScale Power (NYSE: SMR), another enormously popular nuclear stock this year, plummeted more than 30% in just the past five trading sessions. SMR was up more than 200% before the sell-off, followed by shares hitting their YTD high. The company isn’t entirely pre-revenue as it has begun generating income from engineering services, licensing fees, and early-stage projects. But it wasn’t just pre-revenue nuclear companies that took a hit. Investors were also grabbing gains from well-established firms, which further drove the sell-off in otherwise speculative stocks. For example, Cameco (NYSE: CCJ)—the world’s largest publicly traded uranium mining company—saw its shares fall by more than 10% over the past five trading sessions. Preceding last week’s sell-off, shares of CCJ were up around 105%. When looking at those YTD gains, it can be argued that last week’s AI stock fallout caused nuclear stocks to melt down, not because their respective applications aren’t viable, but because investors were locking in returns. Looking ahead, underlying trends remain intact, which should continue to reward shareholders who can see past the short-term noise. Long-Term Tailwinds Remain in Place for Nuclear While Burry may in some circles be considered prescient, his puts on NVIDIA and Palantir likely have more to do with their runaway valuations that are unsupported by their earnings. However, those positions do not in any way suggest that AI data centers’ projected demand for electricity has been reduced, deterred, or altered in any way. That’s because last week’s sell-off is not an indication that underlying AI infrastructure trends are no longer in place. Currently, AI accounts for 4.4% of all U.S. energy consumption. But by 2030, that figure is expected to balloon to 12% to 20% of total consumption. None of that has fundamentally changed, and with the United States grappling with rapidly aging infrastructure, this all bodes well for nuclear tech companies that are aligning themselves with the goals of hyperscalers and Magnificent Seven companies. According to market consultancy firm Grand View Research, the AI data center industry is expected to grow at a compound annual growth rate (CAGR) of 28.3% from 2025 to 2030. While the CAGR over the same period for the SMR industry is projected to be 3.3%, this doesn’t account for how the gap between current electric power production and the forecasted demand for AI data centers will be filled. Meanwhile, the AI-driven boom in data center construction cannot go unmentioned. Earlier this year, Apollo Chief Economist Torsten Sløk noted that, despite GDP contracting in Q1 this year, data center construction added 1% to GDP growth. Then, in early August, Fortune reported that data centers have surpassed consumer spending as the most significant contributor to the U.S. GDP.  Read This Story Online | 
