Nano Nuclear Energy Inc (NASDAQ:NNE) shares are trading higher. The company on Tuesday announced that it joined an industry group to support deployment of U.S. small modular reactors (SMRs).

What To Know: Nano Nuclear said it's one of 16 civil nuclear entities joining the U.S. Civil Nuclear/SMR Industry Working Group (CNIWG) for Southeast Asia to support the deployment and export of SMRs and advanced nuclear technologies to the region.

"Southeast Asia presents a very promising market for our advanced, portable microreactor power solutions in development. The region's geographical challenges often limit the expansion of traditional power grids, leading many communities to rely on diesel generators," said Jay Yu, founder and chairman of Nano Nuclear Energy.

"NANO Nuclear's involvement in this working group will allow us to gain deeper insights and adapt our proprietary microreactors to meet the specific needs of Southeast Asian communities as well as remote areas generally, which has always been a part of our strategy."

The CNIWG for Southeast Asia is an initiative established in partnership with the U.S. Department of Commerce's International Trade Administration, the Foreign Commercial Service at U.S. Missions in Southeast Asia and the Industry and Analysis Office of Energy & Environmental Industries.

The group will hold quarterly meetings to review and discuss key government activities, policies and export opportunities for SMRs. The meetings will also include updates on projected energy demand in Southeast Asia. Nano Nuclear noted that it will also be notified of any opportunities to participate in U.S. government initiatives.

Nuclear stocks have rallied in recent weeks as big tech companies increasingly turn to nuclear to meet the rising energy demands related to the rapid ramp of AI.

Analysts suggest there is further upside ahead. HC Wainwright & Co. analyst Sameer Joshi initiated coverage on Nano Nuclear with a Buy rating at the end of last month and set a price target of $50. Last week, Benchmark analyst Michael Legg maintained a Buy rating and raised the price target from $39 to $66.

NNE Price Action: Nano Nuclear Energy shares were up 5.12% at $22.71 at the time of publication, according to Benzinga Pro.