This Small-Cap Nuclear Stock Bombed At Debut — But 2026 Might Be Its Redemption Year

• Terrestrial Energy went public through a SPAC merger with HCM II Acquisition Corp. in late October. 
• In just three days of trading for the year, the stock has pared its losses and seen a 50% jump, adding $245 million to its market capitalization.
• On Tuesday, the company announced that it has entered into an Other Transaction Authority agreement with the U.S. Department of Energy.

The year is shaping up to be favorable for nuclear energy companies, with the stocks of major players such as Oklo and NuScale already posting strong gains. A smaller name has also begun to draw investor attention, with its shares clawing back losses from late 2025 and retail chatter on Stocktwits picking up momentum.

Terrestrial Energy went public via a SPAC merger with HCM II Acquisition Corp. in late October. The company develops small modular nuclear plants using advanced reactor technology and debuted at a time when the Trump administration was pushing for more nuclear-friendly regulations in the U.S.

Terrestrial Energy is developing a 390-megawatt small modular nuclear plant that uses IMSR technology, a Generation IV reactor design, to deliver high capital efficiency, low-cost industrial heat, and electric power using standard nuclear fuel. The stock began trading at $19.10 in October but slid to $6.11 by Dec. 31, erasing about 68% of its value.

IMSR’s 2026 So Far

In just three days of trading this year, the stock has pared its losses and jumped 50%, adding $245 million to its market capitalization as of Tuesday’s close. Terrestrial Energy’s stock closed up 30%, settling for its best day since IPO.

On Tuesday, the company announced that it has entered into an Other Transaction Authority (OTA) agreement with the U.S. Department of Energy (DOE). The deal has been signed for Project TETRA, a work to build a pilot reactor, supported by the Integral Molten Salt Reactor (IMSR) plant development.

IMSR vs. OKLO vs. SMR

IMSR stock fell 68% from its public debut through December, underperforming Oklo's roughly 50% decline and broadly matching NuScale Energy's 67% drop over the same period.

Short interest in Terrestrial Energy remains relatively low. According to Koyfin, IMSR's short interest stood at about 1.5%, well below Oklo's 13.3% and NuScale Energy's 14.5%, suggesting less bearish positioning despite the steeper share-price decline.

America's Nuclear Push

Momentum for the nuclear sector picked up following a U.S. House Energy Subcommittee meeting on Wednesday focused on nuclear power licensing and deployment in the country.

Ahead of the hearing and separately on Monday, the U.S. Department of Energy announced a $2.7 billion investment to strengthen domestic uranium supply over the next decade. The news lifted nuclear stocks, with Oklo and NuScale Energy closing up 7% and 4.2%, respectively, on Tuesday.

What Is Retail Thinking?

Retail sentiment toward Terrestrial Energy has swung sharply positive. Stocktwits data shows sentiment jumping to 'extremely bullish' from 'neutral' over the past week, while message volume surged to 'extremely high' levels.

Over the last 30 days, IMSR followers on Stocktwits rose 9%, and message volume spiked 1,114% in the past 24 hours alone. By comparison, NuScale Energy saw a 5% increase in watchers and a more than 1,000% jump in message volume over the past month, while Oklo recorded a 3.4% rise in followers and a 1,430% surge in messages.

Despite the recent buzz, Terrestrial Energy's shares lost more than 35% of their value in December.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Also See: Why Did Rare Earth Stocks MP And CRML See An Uptick After-Hours Today?

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