Key Points:
- U.S. Army launches the Janus Program for micro nuclear reactors by 2028.
- NuScale Power stock jumps 15%, set to benefit from contracts.
- Analysts are optimistic about growth and nuclear energy reliability.
The U.S. Army announced a new initiative, the Janus Program, on Wednesday to accelerate the development and deployment of micro nuclear reactors. The move immediately lifted investor sentiment toward NuScale Power Corp. (NYSE: SMR), whose shares rose 15 percent following the announcement.
The program, launched in partnership with the Defense Innovation Unit, is designed to fast-track advanced nuclear reactor technologies for defense applications. The initiative supports President Donald Trump’s directive to have operational reactors installed at select U.S. military bases by 2028.
Boost for small modular reactor firms
NuScale Power, based in Corvallis, Oregon, is seen as a key beneficiary of the Janus Program. The company is a leader in small modular reactor (SMR) technology and remains the only U.S. firm with an SMR design approved by the Nuclear Regulatory Commission (NRC).
Industry analysts said the Army’s backing could help NuScale secure government contracts, increase revenue, and validate its reactor design for broader commercial markets. The policy push provides what investors view as a “derisked opportunity” for NuScale Power to scale production and expand its footprint in the clean energy sector.
Following months of volatility, NuScale stock has gained more than 375 percent from its year-to-date low in April. The rally reflects renewed confidence in the company’s technology and its potential role in U.S. energy security efforts.
Market outlook and valuation concerns
Despite the surge, NuScale Power trades at a price-to-sales ratio of 346 times, making it an expensive stock by conventional standards. However, analysts argue that its unique regulatory status and growing government partnerships justify the premium.
The company also benefits from rising geopolitical tensions between the United States and China, which have intensified interest in domestic energy production and self-sufficient power systems. Nuclear power’s reliability compared to intermittent renewable sources such as solar and wind further strengthens NuScale’s long-term outlook.
“The Janus Program represents a turning point for advanced nuclear energy in the U.S.,” said an energy sector analyst familiar with the matter. “It offers both strategic and economic advantages, particularly for companies like NuScale that are ahead of the curve in regulatory approvals.”
Analysts remain optimistic
Wall Street sentiment toward NuScale Power remains positive. According to market data, analysts currently rate SMR stock as a “Moderate Buy”, with price targets reaching as high as $60 per share. That suggests an upside potential of roughly 12 percent from current levels.
Analysts note that sustained policy support, increased defense spending, and expanding clean energy mandates could help the company maintain growth momentum through the remainder of 2025.
As the U.S. Army accelerates efforts to integrate nuclear technology into its infrastructure, NuScale Power stands to play a central role in shaping how the military and, eventually, civilian markets adopt compact, efficient, and safe nuclear solutions.
While questions about valuation and scalability remain, the Janus Program marks a significant milestone in the government’s approach to energy innovation—one that could redefine both national security and the country’s clean energy strategy.
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