According to a report from Precedence Research, the global nuclear power market demand is forecast to grow from 435.54 gigawatts (GW) in 2024 to 442.94 (GW) in 2025 and 515.51 GW in 2034, indicating a compounded annual growth rate of 1.7% over the next decade. The North American nuclear power market is forecast to grow by 1.8% year over year to roughly $170 billion in 2024, accounting for almost 40% of total revenue.
Several countries are looking to invest heavily in nuclear energy to fight climate change and accelerate the deployment of clean energy solutions. Today, North America is leading the race with the largest revenue share. Data from the World Nuclear Association states that 92 nuclear reactors are operational in the U.S., with a net capacity of 94.7 GW. In fact, almost a fifth of the country’s electricity was generated from nuclear energy.
With 19 operational nuclear reactors, Canada is second on this list, and it generates 14.3% of its electricity from this clean energy source. Over the next 10 years, the Asia-Pacific region is expected to expand nuclear energy capacity at the fastest pace compared to other geographies.
Given this background, ASP Isotopes (ASPI) is one nuclear energy stock you can consider buying right now.
Is ASPI Stock a Good Investment Today?
ASP Isotopes, valued at a market cap of $508 million, is a pre-commercial-stage advanced materials company focusing on the production, distribution, marketing, and sale of isotopes. It develops Molybdenum-100, a non-radioactive isotope for the medical industry, as well as Carbon-14 and Silicon-28. ASP also develops Uranium-235, an isotope of uranium used widely to produce nuclear energy.
Last week, ASP Isotopes stock rallied after announcing it had entered into a MoU (memorandum of understanding) with South Africa’s state-owned nuclear energy entity. The two companies will partner on the research and development of advanced nuclear fuels with a scope for further expansion. ASPI expects the construction of a HALEU (high-assay low-enriched uranium) production facility to be completed at South Africa’s main nuclear research center, which already hosts the 20-megawatt SAFARI-1 research nuclear reactor.
"This proposed partnership with Necsa is designed to re-establish South Africa as a leader in Nuclear Engineering producing the advanced nuclear fuels that the world requires to prevent climate change," said ASP Isotopes Chairman and CEO Paul Mann.
Earlier this month, ASPI announced a collaboration with TerraPower to develop a uranium enrichment facility, which could enhance the former’s capabilities in producing HALEU. The partnership will help ASPI secure a long-term supply agreement, allowing the company to strengthen its position in the nuclear energy sector.
What's the Target Price for ASPI Stock?
Last month, ASP Isotopes announced the pricing of its public offering and raised $16.2 million. ASPI ended Q3 with $51.6 million in cash, while its free cash outflow in the last 12 months has totaled $24.5 million.
At the current cash burn rate, ASPI has more than two years of runway left, providing it with enough time to scale its production capabilities and benefit from economies of scale. ASP stated it would use the proceeds to accelerate the construction of isotope enrichment facilities in South Africa and Ireland.
Analysts tracking ASPI stock expect sales to increase from $4.1 million in 2024 to $24.2 million in 2025. Comparatively, its adjusted loss per share is forecast to narrow from $0.57 in 2024 to $0.15 in 2025.
Both of the analysts covering ASPI stock have a “strong buy” recommendation, though the shares have outpaced their average price target of $6.50.
