BNP Paribas Asset Management has reversed its “non-viable” stance on small-modular-reactor (SMR) stocks, now allocating capital to the sector after outperforming 97% of peers in the past year. The fund manager, previously critical of SMRs’ market potential, is now embracing the technology as a strategic move amid growing industry adoption. This shift signals confidence in SMRs’ long-term viability, particularly as governments and corporations accelerate plans to deploy nuclear energy solutions for decarbonization goals.

The fund’s pivot highlights a broader trend of institutional investors reassessing niche sectors once deemed too risky or underdeveloped.