Why NuScale Power Stock Jumped Nearly 24% To Start 2026

Core Viewpoint - NuScale Power's stock experienced a significant increase of 23.4% in January, driven by political support for nuclear energy and an analyst upgrade from Bank of America [1][6]. Group 1: Political and Regulatory Environment - The U.S. House of Representatives Energy Subcommittee held hearings on January 5 to discuss a nuclear acceleration roadmap, indicating bipartisan support for expanding nuclear technology in the energy grid [2]. - The timeline for nuclear energy development includes operational experimental reactors by July 4, 2026, multiple small modular reactors (SMRs) by the end of 2027, and nuclear power on military bases by 2028, reflecting a renewed urgency in the industry [3]. Group 2: Company-Specific Developments - NuScale holds the only SMR design certification from the Nuclear Regulatory Commission, which positions the company favorably for regulatory streamlining and faster deployment [5]. - Bank of America upgraded NuScale's stock from "Underperform" to "Neutral" on January 9, setting a price target of $28, citing positive factors such as a licensing agreement with the Tennessee Valley Authority and the advantages of its light-water reactor design [6]. Group 3: Market Dynamics and Challenges - The stock rally faced challenges when Microsoft reported earnings that raised concerns about AI infrastructure spending, which could impact growth for companies like NuScale that are linked to AI demand [7][8]. - The energy demand driven by AI has been a key factor in NuScale's stock performance over the past two years, and any decline in this demand could negatively affect the company's stock [8].