NuScale Power (SMR) stock surged 16.31% in pre-market trading on Wednesday, as the U.S. Army unveiled plans to deploy small nuclear reactors on military bases. The announcement of the Janus Program, which aims to supply bases with microreactors by 2028, has sparked a rally in nuclear stocks, with NuScale Power being a significant beneficiary.

NuScale Power, which specializes in small modular reactor (SMR) technology, stands to gain from this initiative as it is currently the only U.S. company with an SMR design approved by the Nuclear Regulatory Commission. This first-mover advantage positions NuScale well to capitalize on the growing demand for clean, reliable energy sources, particularly as the U.S. military seeks to enhance energy resilience at its facilities.

The stock's dramatic rise also reflects broader market optimism about the future of nuclear energy, especially in light of increasing electricity demand and the push for clean power solutions. While NuScale Power's valuation remains rich at 81 times trailing 12-month sales, investors appear to be betting on the company's potential to secure contracts and expand its market share in the burgeoning SMR industry.