Stock Market Watches NuScale Power Rally: Bank of America's Nuclear Bet on AI Data Centers

The stock market paid close attention on January 9 as NuScale Power (NYSE:SMR) surged 4.3% to close at $20.52, extending its impressive run since the company’s 2022 IPO launch. The nuclear reactor developer has delivered a 104% return for early investors in just a few years. What caught traders’ eyes wasn’t random volatility—Bank of America analysts upgraded the small modular reactor specialist with a bullish $28 price target, signaling 36.5% upside potential from that day’s closing level.

Trading activity exploded to 49.3 million shares, nearly doubling the stock’s typical daily volume of 26.3 million shares. This surge reflects genuine market interest, though options activity also played a role in driving the heightened stock market dynamics that day.

Nuclear Renaissance Lifts Stock Market Players

The broader market responded positively to nuclear power’s growing relevance. The S&P 500 climbed 0.64% to 6,966, while the Nasdaq Composite rose 0.81% to reach 23,671. Within the nuclear sector, peer companies also benefited: GE Aerospace (NYSE:GE) gained 2.27% and BWX Technologies (NYSE:BWXT) jumped 4.28%, demonstrating renewed investor enthusiasm for modular reactor technology and nuclear-powered solutions.

This coordinated strength across the stock market’s nuclear subsector points to a fundamental shift in how investors view atomic energy. No longer purely a controversy—nuclear power is becoming seen as essential infrastructure.

Why Analysts Upgraded NuScale’s Prospects

The Bank of America upgrade reflects a key reality: data centers powering artificial intelligence require enormous, continuous electricity supplies. Traditional renewable energy sources alone cannot reliably meet these demands. NuScale’s small modular reactor technology offers a promising alternative pathway, delivering carbon-free baseload power without the site limitations of conventional nuclear plants.

The analyst team’s $28 target implies strong confidence in NuScale’s long-term value proposition. AI’s computational demands are only accelerating, suggesting sustained pressure for innovative power generation solutions. For investors tracking the intersection of technology and energy infrastructure, this represents a compelling investment thesis.

The Reality Check: Timing Matters

However, the stock market shouldn’t overlook a critical caveat: NuScale’s reactors remain years away from commercial deployment at scale. The company is still in development and regulatory approval phases. Bank of America analysts themselves emphasized this is a long-term play, not an immediate growth driver.

Additionally, while options trading contributed to Friday’s volume surge, it’s worth remembering that options activity can cut both directions—sometimes amplifying gains but also potentially reversing them just as quickly.

What This Means Moving Forward

For investors considering NuScale Power or the broader nuclear sector, the stock market signal is clear: renewed interest in atomic energy as the world confronts AI’s power needs. The Bank of America upgrade validates this thesis at an institutional level. Yet patience is essential—massive gains likely depend on regulatory success and commercial scalability over the next several years.

Monitoring how this nuclear power narrative evolves will be crucial for anyone building positions in this space.