Amentum Holdings Inc. (AMTM) shares jumped during Wednesday's trading session before leveling off after the close, and the catalyst isn't hard to spot. The Trump administration's aggressive push for nuclear energy expansion has investors suddenly paying very close attention to who actually runs America's nuclear infrastructure. Turns out, it's mostly Amentum.
The Nuclear Infrastructure Play
Here's the interesting part: Amentum oversees about 90% of the United States' nuclear infrastructure for the Department of Energy, according to Citron Research's Andrew Left. We're talking nuclear weapons complex operations, defense nuclear facilities, engineering and operations for new reactors, and radioactive waste cleanup at major sites. It's not exactly a crowded field.
Back in May, President Trump signed an executive order requiring 400 GW of nuclear capacity by 2050. That's four times current levels, which is ambitious to put it mildly. To make it happen, the administration's $250 billion Department of Energy loan program is expected to focus heavily on nuclear projects over the next four years. The DOE recently announced a $1 billion loan for restarting Three Mile Island, so this isn't just talk.
Big Tech Wants In
The timing makes sense when you consider that major tech companies desperately need nuclear power to run their expanding data center operations. AI infrastructure doesn't run on hopes and dreams—it needs massive, reliable power. Google (GOOG) is involved in the Iowa reactor restart, while Microsoft (MSFT) has partnered for 835 MW at Three Mile Island. Trump's energy policy essentially ties nuclear expansion directly to AI infrastructure needs, creating a perfect storm of demand.
The Contract Advantage
What makes Amentum particularly interesting is the nature of its business. The company's nuclear contracts are legally required, national security-classified, multi-decade agreements with bipartisan support and guaranteed funding. Unlike defense contractors who might face scrutiny from budget-cutting efforts, Amentum's work isn't optional.
What Analysts Think
The analyst community has mixed views. UBS analyst Gavin Parsons initiated coverage with a Neutral rating and $25 price target in November. BTIG maintained its Buy rating in late October with a $30 target. JP Morgan went with Neutral in early October, also at $30. Cantor Fitzgerald upgraded to Overweight from Neutral in September, raising its target from $25 to $35. Morgan Stanley, playing contrarian, kept its Underweight rating but bumped the price target slightly to $20 from $19.
Price Action: Amentum (AMTM) shares were essentially flat at $25.56 at the time of publication Wednesday, up just 0.16%.
