NuScale Power (NYSE: SMR) – Positioned for the Next Generation of Nuclear Energy
NuScale Power is emerging as a leader in the small modular reactor (SMR) space, offering investors a unique opportunity to get in on the ground floor of what could be a multidecade megatrend in energy. While traditional utilities have been slow to adopt SMR technology due to high upfront costs, tech giants like Google and Amazon are now stepping up to invest in advanced nuclear reactors. This shift is driven by the tech sector’s insatiable demand for reliable, carbon-free electricity to power AI data centers.
NuScale, with a market value of $4.7 billion, has already seen its stock jump 54% over the past month, signaling growing interest in this emerging sector. Although NuScale isn’t directly linked to the recent deals with Google or Amazon, its 5+ year regulatory head start and growing customer pipeline make it well-positioned to benefit from broader adoption of SMRs in the future.
Craig-Hallum recently raised its price target on NuScale Power to $21, up from $16, citing the accelerating momentum in nuclear power. The firm believes NuScale is primed to lead the charge as the world looks for sustainable energy solutions that can meet the increasing demand for baseload power while also helping to decarbonize the grid.
For investors with a higher risk tolerance, NuScale offers an exciting way to gain exposure to the future of nuclear energy. While the technology is still in its early stages, the growing commitment from tech companies to invest in SMRs suggests that the demand for this innovative solution could be far greater than previously appreciated.
