Nuclear power is going miniature. On Aug. 27, the U.S. Army approved $2.2 billion in funding for micro nuclear reactors. Five developers were selected, each of whom will deliver a microreactor to a U.S. Army site.
The move is part of the Janus Program, which was launched last October. "Executive Order 14299-Deploying Advanced Nuclear Reactor Technologies for National Security-was signed by President Donald Trump in May 2025 and aims for operation of an Army-regulated nuclear reactor at a domestic military installation no later than 30 September 2028," reports World Nuclear News.
The goal seemingly isn't just to power U.S. military sites with nuclear energy. Instead, it appears that military spending and the adoption of nuclear technology will be used to kick-start more civilian projects.
"We are seeking not just reactors capable of turning on for a brief demonstration, but rather systems able to deliver power with high-capacity factors for years of operation," a representative for the Army stressed. "The Janus Program will be a complete success when, and only when, we have assisted multiple nuclear companies in developing truly reliable and affordable nuclear microreactors which they can sell to other buyers beyond just the military."
U.S. regulators and many of the country's politicians are increasingly focused on advancing domestic use of nuclear power. The following two stocks are set to benefit.
NYSE: SMR
Key Data Points
These stocks will benefit from rising interest in nuclear energy
If the U.S. military is focused on scaling microreactors, the most obvious investment opportunities are NuScale Power (SMR -0.65%) and Oklo Inc. (OKLO -5.03%).
Oklo was named a potential supplier to the Janus program, but was ultimately not selected. NuScale, meanwhile, does not appear as if it qualified for consideration.
Why, then, are these two stocks positioned to benefit from the U.S. military's efforts?
First, these are the only two pure-play stocks available to investors today focused exclusively on small modular reactors, or SMRs. Other publicly traded companies are also developing their own SMR designs. These companies, however, are mostly diversified industrial conglomerates, reducing an investor's ability to bet specifically on these miniature nuclear power plants.
Image source: Getty Images
Second, SMR adoption remains very much in its early innings. Only two SMR projects are currently in operation worldwide right now, one in China, the other in Russia. Research from leading investment banks including Bank of America, meanwhile, suggests that SMRs could become a $1 trillion global opportunity. That opportunity, however, will occur over several decades.
The faster excitement and interest grows for SMRs, the better off both Oklo and NuScale will be. Both companies have already established impressive customer pipelines, but few if any of those deals have firm financial commitments. Securing those commitments requires many things, but a clear signal from both regulators and government officials, plus real-world adoption by the U.S. military, would be a strong tailwind. And that's exactly what has unfolded in 2026.
Despite rising tailwinds, there is still a large amount of risk for SMR stocks. Oklo and NuScale remain unprofitable, and have largely relied on shareholder dilution to stay afloat. Both companies impressive customer pipelines, meanwhile, could reverse course at anytime. NuScale, for example, lost its biggest customer in 2023 as cost estimates ballooned.
Still, the news this week is undoubtedly positive for both SMR investors and nuclear energy investors in general.
