TLDR
- NuScale Power shares jumped 17% after the U.S. Army announced the Janus Program to deploy micro nuclear reactors at military installations
- The Army partnered with the Defense Innovation Unit to create commercially owned and operated microreactors
- President Trump’s May executive orders set a deadline of September 30, 2028 for a reactor to operate at a domestic military installation
- Other nuclear stocks also rallied, with Oklo up 7%, Nano Nuclear up 4%, and uranium company Centrus gaining 13%
- NuScale posted $8 million in revenue in the second quarter, while competitors Oklo and Nano Nuclear have not yet generated revenue
NuScale Power stock climbed 17% on Wednesday after the U.S. Army launched a new program to deploy small nuclear reactors. The rally came as investors reacted to the military’s Janus Program announcement made Tuesday.
The Army partnered with the Defense Innovation Unit to build micro nuclear reactors. These reactors will be commercially owned and operated. The goal is to help developers scale their businesses while meeting military energy needs.
The program responds to executive orders President Trump issued in May. Those orders aim to speed up the deployment of advanced nuclear reactors across the country. Trump directed the Defense Department to have a reactor operating at a domestic military installation by September 30, 2028.
The nuclear sector saw broad gains following the announcement. Oklo shares rose nearly 7% while Nano Nuclear climbed 4%. Centrus, a uranium company, jumped 13%.
NuScale has experienced heavy trading recently with an average volume of 16.3 million shares. The stock has gained 158.55% year-to-date. The company’s market cap now stands at $12.83 billion.
The Reality Behind the Rally
Investors have been speculating heavily on small reactor developers despite limited operational track records. NuScale, Oklo, and Nano Nuclear have not deployed any reactors yet. The enthusiasm stems from potential rather than proven performance.
NuScale generated $8 million in revenue during the second quarter. This makes it the only one of the three companies to post any revenue. Oklo and Nano Nuclear have not recorded any revenue to date.
The market has shown high implied volatility for NuScale shares. Technical indicators currently flash a buy signal. Recent insider activity has also contributed to investor confidence.
Market Caution Persists
AI power demand has fueled interest in nuclear energy solutions. Tech companies need massive amounts of electricity to run data centers and AI systems. Small nuclear reactors could provide that power without carbon emissions.
Trump’s executive orders have accelerated the timeline for nuclear deployment. The 2028 deadline creates pressure to move projects forward quickly. This has energized investors betting on small reactor technology.
Goldman Sachs recently advised investors to exercise caution on Oklo. The warning comes as valuations have climbed without corresponding operational milestones. The same concern could apply to other companies in the sector.
The Janus Program marks a shift in how the military approaches energy. Commercial ownership means private companies bear the development costs and risks. The Army gets access to new power sources without upfront capital expenses.
NuScale’s stock performance reflects broader market sentiment about nuclear power. The company has become a proxy for betting on advanced reactor technology. Whether that bet pays off depends on execution and deployment timelines.
The Army’s program could provide a crucial testing ground for small reactor technology. Military installations offer controlled environments for new energy systems. Success there could pave the way for civilian applications.
The uranium supply chain has also benefited from renewed nuclear interest. Centrus’s 13% gain shows investors are looking at the entire nuclear ecosystem. Fuel suppliers stand to profit if small reactors move from concept to reality.
The 2028 deadline set by Trump’s executive order creates a concrete target for developers. NuScale and its competitors now have a clear timeframe to work toward. The Army’s Janus Program provides a potential pathway to meet that goal.
