XE Stock Set For 40% Rally? Analyst Lists 4 Reasons Amid AI Power Boom

• Pendleton says X-energy is reducing execution risk while maintaining high-margin cash flows. 
• The analyst added that the firm offers investors exposure to a vertically integrated advanced reactor and fuel fabrication platform.
• The coverage comes amid an industry-wide split in the AI development debate, with some leaders arguing for a slowdown in growth amid safety concerns, while others oppose it. 

Shares of X-Energy Inc. (XE) are on track to undo last month's gains, heading for a finish in the red in September. However, a Wall Street analyst thinks the worst may be over for the Maryland-based nuclear fuels manufacturer. 

Texas Capital analyst Nate Pendleton initiated coverage of XE stock with a 'Buy' rating and a $22 price target, implying upside of more than 40% from its last close. 

Target Rationale For XE

According to a summary of the note on The Fly, Pendleton said that by focusing on technology licensing, services, and fuel sales, X-energy is reducing execution risk while maintaining high-margin cash flows. 

The analyst also added that the firm sees the stock offering investors exposure to a vertically integrated advanced reactor and fuel fabrication platform with an asset-light business model and recurring revenue.

The coverage comes amid an industry-wide split in the AI development debate, with some leaders arguing for a slowdown in growth amid safety concerns, while others oppose it. 

X-Energy is a pre-revenue nuclear energy company targeting a mix of major technology companies, including AI companies, heavy industrial manufacturers, public utilities, and government entities, for its power services. 

Top Holders Of XE Stock 

In a recent 13F filing, Peter Thiel's Thiel Macro LLC purchased 200,000 Class A shares of XE worth $3.672 million as of the end of the second quarter of 2026.

Meanwhile, Cathie Wood's Ark Investment Management holds shares in the company worth $103 million, representing about 0.77% of its combined portfolio, according to its website.  

XE Stock: What Do Retail Traders Think?

On Stocktwits, retail sentiment around XE stock was 'extremely bullish' at the time of writing. Message volumes around the ticker climbed 360% over the last 24 hours. 

One user said,“$XE back to $18+ eow Very (bullish).” 

Another user said,“$XE buying more at those levels....potential and fundamentals very strong!!!”

A third user said,“$XE Mark this post under $15. This stock will be way higher from here soon and nuclear theme will gain traction again. Lot's of funds loading up on this and Peter Thiel took a stake as well.”

XE stock is down more than 46% in 2026. 

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