At the 2026 World Economic Forum in Davos, President Trump positioned small modular reactors (SMRs) as a cornerstone of U.S. energy policy, highlighting their ability to deliver clean, reliable power for advanced manufacturing and artificial intelligence growth. His remarks referenced two recent executive orders that cut reactor licensing timelines by nearly half and direct the Department of Energy to fast-track SMR deployment. Within hours, SMR shares climbed more than 6%, marking their largest single-day rise since mid-2025.

In late January, the Nuclear Regulatory Commission announced a new SMR review framework designed to compress multi-year safety assessments into a single 24-month cycle. This expedited process follows bipartisan legislation that allocates $1.2 billion to support SMR demonstration projects over the next five years. Analysts estimate that, once certified, each reactor could be erected in under three years and begin delivering power at a levelized cost below $60 per megawatt-hour, making SMRs competitive with natural gas plants.

Pure-play nuclear and uranium producers rallied in concert with SMR developers, as investors sought exposure to the broader fuel cycle. Companies specializing in modular reactor design saw average volume rise by 40% on the day of Trump’s speech. Meanwhile, uranium miners reported lift in forward contracting activity, securing new supply agreements that span through 2035. The uptick in trading activity reflected growing conviction that domestic fuel supply chains will benefit from federal incentives tied to SMR adoption.

SMR proponents point to ballooning power requirements for AI data centers, which are projected to nearly double U.S. electricity demand by 2030. A recent study from the Electric Power Research Institute forecasts that up to 50 gigawatts of new baseload capacity could be needed to support AI workloads alone. Several major technology firms have already entered memoranda of understanding to purchase SMR-generated power for new campuses. Industry models suggest that capturing just 10% of incremental data center demand could drive annual SMR revenue past $8 billion by the end of the decade.