This ‘Strong Buy' Nuclear Power Stock Just Got a Bill Gates Boost
Nuclear energy stocks have reemerged as attractive plays. One standout is ASP Isotopes (ASPI), which recently grabbed investors' attention with a strategic tie-up.
ASP just secured a deal with Bill Gates–backed TerraPower to supply high-assay, low-enriched uranium (HALEU) for its Natrium demonstration plant in Wyoming. In return, TerraPower will provide a multi-advance term loan to help finance ASP's new enrichment facility at Pelindaba in South Africa.
Slated to begin operations in 2027, the Pelindaba plant will produce 15 metric tons of HALEU annually and ramp up to 150 metric tons by 2037, stepping into a market long dominated by Russian suppliers. With bipartisan support in Washington for diversifying the nuclear fuel supply chain, ASP Isotopes is well-positioned to meet surging demand for advanced reactor fuel, making ASPI an appealing option for investors eyeing the next wave of nuclear innovation.
About ASP Stock
ASP Isotopes is a critical materials company specializing in uranium enrichment, helium, and liquefied natural gas. The firm focuses on producing high-assay, low-enriched uranium (HALEU) to fuel next-generation reactors and its goal is to be able to supply this enriched uranium under long-term agreements, including a new deal with Bill Gates' TerraPower, starting in 2027.
Valued at a small market cap of $525 million, shares of this nuclear company have rallied 72% so far this year, outperforming the broader S&P 500 Index ($SPX), which has gained 0.6% over the same period.
Following this rally, ASPI trades at a forward price-sales ratio of 16x, nearly ten times the sector median of 1.6x, suggesting the stock may be priced for perfection and could face downside risk unless its TerraPower partnership and Pelindaba facility deliver exceptional growth.
Strong Financial Position Fuels Expansion
ASP Isotopes maintains a solid financial health position. The company closed 2024 with a strong $61.9 million cash balance and minimal debt, positioning it to fund three planned isotope facilities in South Africa. In Q4 alone, the company generated $1.10 million in revenue, driving full-year 2024 sales to $4.1 million, up from $0.4 million in 2023. It also grew total assets from $27 million to $94.3 million.
Moreover, ASP has secured a strategic term sheet with Bill Gates–backed TerraPower to construct a high-assay, low-enriched uranium (HALEU) plant at Pelindaba. TerraPower's Natrium reactor in Wyoming will rely on ASP's HALEU output, fast-tracking ASP's timeline and validating its enrichment expertise.
To further diversify its offerings, ASP has begun commercial production of Silicon-28 isotopes, vital for quantum computing and semiconductors, with U.S. contracts secured and initial deliveries slated for the second half of 2025. At the same time, the company is advancing a gallium-germanium-nickel-64 system to broaden its critical materials portfolio.
Looking ahead, bipartisan U.S. support for expanding nuclear fuel supply, an expected 3,000-ton HALEU shortfall by 2035, and a market valued at north of $37 billion create a compelling growth backdrop. A pending acquisition of the Renergen (RGNNF) helium project and the TerraPower partnership provide multiple high-leverage growth vectors. If ASP brings its isotope facilities online as planned, it could reach revenue breakeven by late 2025 or 2026 and unlock meaningful shareholder value.
Analyst Opinions on ASP Stock
Two Wall Street analysts covering the stock remain highly optimistic about the company's growth, issuing a unanimous 'Strong Buy' rating. While the average price target of $6.50 has already been surpassed, the Street-high target of $8.50 suggests the stock still has potential upside of 8% from current levels.
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