NuScale Power Corp. (SMR) stock jumped over 1% overnight Tuesday following its best session in more than a month, ending the previous session nearly 9.5% higher. The gains came after Bloomberg reported a Trump administration initiative to accelerate nuclear power deployment for AI data centers, adding advanced reactor developers Oklo Inc. and X-Energy Inc. alongside major technology companies. Reuters separately reported the administration plans to submit a proposed 123 Agreement to Congress within days to facilitate U.S.-Saudi cooperation on a multibillion-dollar civil nuclear program. Despite not being named in the AI data center initiative, NuScale Power benefited from broader optimism around the administration's efforts to expand U.S. nuclear capacity and strengthen energy infrastructure for artificial intelligence.
Trump Administration Launches Nuclear Initiative for AI Data Centers
Bloomberg reported Tuesday that a Trump administration-led initiative to accelerate nuclear power deployment for AI data centers added advanced reactor developers Oklo Inc. (OKLO) and X-Energy Inc. (XE) alongside major technology companies including Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA). The roughly $200 million program will fund national laboratories and universities to speed the design, licensing and construction of advanced reactors while reducing operating costs, according to the report. Despite not being named as part of the initiative, NuScale Power also rode the optimism from the administration's wider efforts to expand U.S. nuclear capacity.
Administration Plans U.S.-Saudi Nuclear Cooperation Agreement Submission
Reuters reported separately, citing two sources, that the administration plans to submit a proposed 123 Agreement to Congress within days to facilitate U.S.-Saudi cooperation on a multibillion-dollar civil nuclear program. According to the World Nuclear Association, Saudi Arabia has steadily advanced its civilian nuclear ambitions over the past decade. The country initially targeted 17 GW of nuclear capacity by 2032 before extending the timeline to 2040. In 2017, Saudi Arabia launched the Saudi National Atomic Energy Project (SNAEP) under its Vision 2030 strategy, focusing on four priorities: building large nuclear reactors, developing small modular reactors (SMRs) for industrial and desalination use, achieving greater self-sufficiency in nuclear fuel production, and establishing a comprehensive regulatory framework for the sector.
NuScale Power Holds Only NRC-Certified SMR Design
NuScale Power is currently the only Small Modular Reactor (SMR) provider with a design certified by the U.S. Nuclear Regulatory Commission (NRC). A deal with Saudi Arabia could entail the use of its reactors to meet the kingdom's nuclear goals. SMR stock is down more than 46% this year amid a selloff in nuclear names as markets rotated into tech-heavy companies.
Retail Investors React to SMR Stock Movement
On Stocktwits, retail sentiment around SMR improved from 'bearish' to 'neutral' over 24 hours as message volumes jumped from 'normal' to 'high' levels. One user said, "$OKLO $XE $SMR So now finally they're pumping nuclear stocks for data center power because of a little 200 million dollar investment from the government? Will be interesting to see where this goes .." Another user said, "$SMR Flying tomorrow with Saudi's deal." However, another user noted, "WE HAVE TO CLOSE THE GAP ON CHINA! Need more from the Trump administration. Today was good. But we need more. Silicon Valley has hit a wall. Capital expenditure for AI is severely constrained by grid capacity. China currently has roughly 39 nuclear reactors under construction, while the U.S. has zero traditional large-scale commercial reactors underway. Advanced SMRs are the only viable path to close the gap."
FAQ
What caused NuScale Power stocks to jump overnight Tuesday?
NuScale Power (SMR) stock jumped over 1% overnight Tuesday after Bloomberg reported a Trump administration initiative to accelerate nuclear power deployment for AI data centers and Reuters reported the administration plans to submit a U.S.-Saudi nuclear cooperation agreement to Congress within days.
Why is NuScale Power significant for Saudi Arabia's nuclear program?
NuScale Power is currently the only Small Modular Reactor (SMR) provider with a design certified by the U.S. Nuclear Regulatory Commission (NRC). A deal with Saudi Arabia could entail the use of its reactors to meet the kingdom's nuclear goals, which target 17 GW of nuclear capacity by 2040.
