As the demand for power surges, driven by the artificial intelligence data center buildout, Canaccord Genuity thinks an Italian nuclear company could be a winner. The firm initiated coverage on Terra Innovatum on Friday with a buy rating. Its $10 price target suggests nearly 140% upside from Friday’s close. This comes after shares of the company have tumbled more than 80% from their 52-week-high in October. Terra Innovatum is off 9% in 2026. NKLR YTD mountain Terra Innovatum in 2026 Nuclear energy is poised to be the answer to rising power demand, thanks to increasing political will, regulatory frameworks that are becoming streamlined and support from hyperscalers embarking on AI capital expenditures, analyst George Gianarikas said. Terra Innovatum is set to benefit with its “SOLO” micro-reactor. “Its distinction lies in a sophisticated synthesis of inherent safety protocols and the proven operational pedigree of high-temperature gas-cooled reactor technology,” Gianarikas wrote about the reactor. “By utilizing a ‘fab-less,’ factory-assembled construction model, SOLO bypasses the traditional logistical nightmares of nuclear infrastructure, drastically reducing ‘overnight construction costs’ while maintaining fuel flexibility and robust proliferation safeguards,” he said. To be sure, the company also faces several headwinds. They include lengthy regulatory approval timelines, the reactor’s reliance on costly specialized resources, such as graphite and helium, and the reactor’s small size potentially hurting traditional economies of scale, the analyst said. Despite these hurdles, Gianarikas still thinks tailwinds within the nuclear industry could win out. “Set against the backdrop of, likely, extraordinary industry momentum, we see significant opportunity for Terra Innovatum,” he wrote.
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Tuesday, May 19
