Macquarie adds three stocks to nuclear picks amid sector reset

Investing.com -- Macquarie's nuclear basket has fallen 12% over the past six months while the MSCI World index gained 12%, according to a report released Tuesday. The firm said earnings expectations for nuclear stocks have risen during this period despite the share price decline.

The investment bank attributed the underperformance to project delays and a broader sentiment reset, noting that nuclear stocks had previously doubled in the six months following the basket's launch in April 2025. Macquarie said the sector's connection to artificial intelligence-related trades amplified the recent pullback.

Several nuclear projects have experienced timeline extensions, including Linglong One, Palisades, Bulgaria and Project Matador. China approved eight reactors in July, falling short of the roughly ten that were expected. Macquarie said delays are common in the nuclear sector, while cancellations remain rare.

The firm projected global nuclear capacity additions could increase from approximately zero in 2025 to around 15 gigawatts in 2026.

Macquarie highlighted that the United States has moved beyond policy support to active financing and licensing. The U.S. has allocated $17.5 billion in conditional lending for long-lead equipment targeting ten proposed reactors.

China accounts for more than half of reactors currently under construction and is expanding its commercial technology leadership, according to the report. Japan, Taiwan, India, ASEAN nations and Saudi Arabia are also advancing nuclear programs.

The firm said nuclear power will provide limited relief for data center power shortages before 2030. Beyond that timeframe, rising power demand, energy security concerns and tight supply chains support continued investment in the sector.

Macquarie added three companies to its top sector picks: valve manufacturer Neway Valve, pipe specialist Jiuli Hi-Tech and uranium miner Paladin Energy. The firm maintained its recommendations for Mitsubishi Heavy Industries and Doosan Enerbility as supply-chain picks, Hyundai E&C for engineering and construction, and Bannerman and Deep Yellow for uranium exposure.

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