Cathie Wood Just Poured Millions Into 2 Nuclear Stocks -- and Neither Was NuScale Power

Ark Invest, a prominent investment firm, recently acquired significant stakes in two nuclear energy companies despite its aversion to NuScale Power. While NuScale Power holds a notable advantage with its approved small modular reactor (SMR) design, its absence from the Ark Invest ETF holdings didn't discourage the investment firm.

Instead, Ark Invest's ETFs, including the Ark Innovation ETF (ARKK), Ark Autonomous Tech & Robotics ETF (ARKQ), and Ark Space & Defense Innovation ETF (ARKX), have made substantial investments in two other nuclear energy companies: X-Energy (XE) and Oklo (OKC).

X-Energy, an SMR designer and nuclear fuel producer, attracted a $5.1 million investment from Ark Invest across three separate purchases. On Tuesday alone, the Ark Innovation ETF and Ark Autonomous Tech & Robotics ETF acquired 292,022 and 126,437 shares, respectively. The following day, the Ark Autonomous Tech & Robotics ETF and Ark Space & Defense Innovation ETF added 134,201 and 66,146 shares, respectively, valuing these transactions at approximately $2.2 million.

Oklo, a company developing a nuclear fuel recycling business and an isotope production facility, also caught the attention of Ark Invest. On Tuesday, the Ark Autonomous Tech & Robotics ETF bought 150,998 shares, valuing the purchase at around $4.1 million.

While Cathie Wood's endorsement of these companies is noteworthy, it's crucial to remember the inherent risks associated with nuclear energy investments. Neither X-Energy nor Oklo have yet to commence commercial operations for their SMRs, making their stocks more susceptible to market volatility. For investors seeking exposure to nuclear energy with reduced risk, investing in either the Ark Invest funds that hold these companies or a nuclear energy ETF that includes them might be a prudent choice.