NuScale Power: Huge Growth Potential in Nuclear Energy
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 16 hours ago
0mins
Source: Fool
- Market Opportunity Analysis: NuScale Power focuses on small modular reactors (SMRs), which are expected to meet the energy demands of the AI and data center industries, potentially generating several trillion dollars in opportunities over the next few decades, despite its market cap of only $4.1 billion, indicating significant growth potential.
- Project Progress Update: During the latest earnings call, NuScale's RoPower SMR project in Romania received approval from SN Nuclearelectrica SA shareholders, while the collaboration with the Tennessee Valley Authority for the largest nuclear deployment in U.S. history is progressing smoothly with no major hurdles disclosed.
- Stock Price Volatility Reasons: Despite positive project updates, NuScale's stock has dropped 10% since the earnings report on May 7, primarily due to market disappointment over the long timelines for project completion, reflecting investor concerns about short-term profitability.
- Investment Recommendation: Despite facing execution challenges and ongoing shareholder dilution risks, NuScale's stock remains attractive for investors willing to accept higher risks in pursuit of maximum returns, making it a strong candidate for watchlists.
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Analyst Views on SMR
Wall Street analysts forecast SMR stock price to rise
13 Analyst Rating
5 Buy
6 Hold
2 Sell
Hold
Current: 11.230
Low
18.50
Averages
32.77
High
60.00
Current: 11.230
Low
18.50
Averages
32.77
High
60.00
About SMR
NuScale Power Corporation is a provider of proprietary advanced small modular reactor (SMR) nuclear technology. The NuScale Power Module, the Company's SMR technology, is a small pressurized water reactor that can generate approximately 77 megawatts of electricity (MWe) or 250 megawatts thermal (gross) and can be scaled to meet customer needs through an array of flexible configurations of up to 924 MWe (12 modules) of output. In addition to the sale of NPMs, it offers a diversified suite of services throughout the development and operating life of the power plant. The Company's suite of services is planned to include licensing support, testing, training, fuel supply services and program management, among others. It serves a range of customers consisting of domestic and international governments, utilities, state-owned enterprises and technology and industrial companies in need of carbon-free, reliable energy.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Analysis of NuScale Power's Significant Stock Price Decline
- Significant Stock Decline: Since the beginning of the year, NuScale Power's shares have dropped approximately 30%, and an astounding 79% from last summer's highs, indicating substantial losses for investors and reflecting market uncertainty regarding small modular reactor (SMR) technology.
- Industry-Wide Struggles: NuScale is not alone in its decline; other SMR stocks like Oklo have also suffered, losing nearly two-thirds of their value since last October, highlighting the challenges faced by the entire sector in terms of regulatory approval and practical applications.
- Long-Term Potential Remains: Despite current volatility, NuScale's long-term growth potential remains intact, particularly as electricity demand continues to rise, positioning SMRs as a promising solution with significant market opportunities over the coming decades.
- Investment Risks and Opportunities: The recent stock price drop provides investors with an opportunity to enter at lower valuations, but the lack of concrete project updates means volatility will likely persist, necessitating careful risk assessment by investors.
See More
NuScale Power: Huge Growth Potential in Nuclear Energy
- Market Opportunity Analysis: NuScale Power focuses on small modular reactors (SMRs), which are expected to meet the energy demands of the AI and data center industries, potentially generating several trillion dollars in opportunities over the next few decades, despite its market cap of only $4.1 billion, indicating significant growth potential.
- Project Progress Update: During the latest earnings call, NuScale's RoPower SMR project in Romania received approval from SN Nuclearelectrica SA shareholders, while the collaboration with the Tennessee Valley Authority for the largest nuclear deployment in U.S. history is progressing smoothly with no major hurdles disclosed.
- Stock Price Volatility Reasons: Despite positive project updates, NuScale's stock has dropped 10% since the earnings report on May 7, primarily due to market disappointment over the long timelines for project completion, reflecting investor concerns about short-term profitability.
- Investment Recommendation: Despite facing execution challenges and ongoing shareholder dilution risks, NuScale's stock remains attractive for investors willing to accept higher risks in pursuit of maximum returns, making it a strong candidate for watchlists.
See More
Nuclear Energy Revival: Massive Growth Potential Over Next 25 Years
- Nuclear Market Opportunity: The U.S. government aims to quadruple nuclear capacity from approximately 100 GW in 2024 to 400 GW over the next 25 years, potentially creating a $10 trillion market opportunity, highlighting nuclear energy's critical role in the clean energy transition.
- Uranium Supply Dominance: Cameco currently produces about 17% of the world's uranium, ranking second globally, and with demand expected to rise by 28% by 2030, Cameco's pricing power and sales volume are set to significantly increase, further solidifying its market position.
- Small Reactor Technology: NuScale Power is the only company with an NRC-approved small modular reactor design, and SMR technology is seen as a primary growth driver for the nuclear industry, potentially reducing construction time from a decade to two to three years and lowering costs.
- Strategic Investment Outlook: Cameco holds a 49% stake in Westinghouse, which is engaged in an $80 billion agreement with the U.S. government to build new reactors, underscoring its strategic importance and market potential in the nuclear renaissance.
See More
NuScale Power Faces Sales Challenges
- Nuclear Technology Outlook: NuScale Power has an approved design for its nuclear reactor, yet the absence of sales has left the startup in a money-losing position, necessitating cautious evaluation by investors.
- Project Collaboration Progress: The partnership with Romanian utility RoPower has received project approval; however, the lack of funding leaves the project's future uncertain, impacting the company's revenue potential.
- Market Volatility: NuScale's stock price is driven by news flow and investor sentiment, and volatility is expected to continue, particularly as sales remain unrealized, requiring investors to prepare for a long-term hold.
- Industry Optimism: Despite challenges, the outlook for NuScale Power remains positive due to rising nuclear energy demand, especially in the context of collaborations with major tech companies, which may attract investor interest in the future.
See More
SpaceX IPO Expected to Reach $1.75 Trillion Valuation
- IPO Valuation Outlook: SpaceX is expected to go public this summer with a valuation potentially reaching $1.75 trillion, making it one of the largest IPOs in history and attracting significant investor interest.
- Retail Investor Opportunity: Up to 30% of shares will be reserved for smaller retail investors, allowing millions to participate in SpaceX stock investments, which could further enhance market activity.
- Impact on NuScale: The SpaceX IPO is likely to positively affect nuclear stocks like NuScale Power, as the influx of capital and attention will highlight the energy-intensive challenges that NuScale is racing to address.
- Potential of Small Modular Reactors: While SpaceX's orbital data center ambitions face technological hurdles, NuScale stands out as the only U.S. SMR developer with design approval from the Nuclear Regulatory Commission, positioning it favorably to scale domestic SMR capacity.
See More
SpaceX IPO Could Reach $1.75 Trillion Valuation
- IPO Valuation Outlook: SpaceX is expected to go public this summer with a valuation potentially reaching $1.75 trillion, making it one of the largest IPOs in history and drawing significant investor attention.
- Retail Investor Opportunity: Up to 30% of shares will be reserved for smaller retail investors, allowing millions to participate in SpaceX stock, thereby increasing public interest in the aerospace sector.
- Impact on Nuclear Stocks: The SpaceX IPO is likely to spotlight companies like NuScale Power, particularly its small modular reactor (SMR) technology, which could be key in addressing the energy-intensive challenges faced by the AI industry.
- Market Focus Shift: While SpaceX's orbital data center plans face technological hurdles, its IPO will spark widespread discussions on energy solutions, potentially driving NuScale's expansion of SMR capabilities in the U.S. market.
See More
Analysis of NuScale Power's Significant Stock Price Decline
- Significant Stock Decline: Since the beginning of the year, NuScale Power's shares have dropped approximately 30%, and an astounding 79% from last summer's highs, indicating substantial losses for investors and reflecting market uncertainty regarding small modular reactor (SMR) technology.
- Industry-Wide Struggles: NuScale is not alone in its decline; other SMR stocks like Oklo have also suffered, losing nearly two-thirds of their value since last October, highlighting the challenges faced by the entire sector in terms of regulatory approval and practical applications.
- Long-Term Potential Remains: Despite current volatility, NuScale's long-term growth potential remains intact, particularly as electricity demand continues to rise, positioning SMRs as a promising solution with significant market opportunities over the coming decades.
- Investment Risks and Opportunities: The recent stock price drop provides investors with an opportunity to enter at lower valuations, but the lack of concrete project updates means volatility will likely persist, necessitating careful risk assessment by investors.
See More
NuScale Power: Huge Growth Potential in Nuclear Energy
- Market Opportunity Analysis: NuScale Power focuses on small modular reactors (SMRs), which are expected to meet the energy demands of the AI and data center industries, potentially generating several trillion dollars in opportunities over the next few decades, despite its market cap of only $4.1 billion, indicating significant growth potential.
- Project Progress Update: During the latest earnings call, NuScale's RoPower SMR project in Romania received approval from SN Nuclearelectrica SA shareholders, while the collaboration with the Tennessee Valley Authority for the largest nuclear deployment in U.S. history is progressing smoothly with no major hurdles disclosed.
- Stock Price Volatility Reasons: Despite positive project updates, NuScale's stock has dropped 10% since the earnings report on May 7, primarily due to market disappointment over the long timelines for project completion, reflecting investor concerns about short-term profitability.
- Investment Recommendation: Despite facing execution challenges and ongoing shareholder dilution risks, NuScale's stock remains attractive for investors willing to accept higher risks in pursuit of maximum returns, making it a strong candidate for watchlists.
See More
Nuclear Energy Revival: Massive Growth Potential Over Next 25 Years
- Nuclear Market Opportunity: The U.S. government aims to quadruple nuclear capacity from approximately 100 GW in 2024 to 400 GW over the next 25 years, potentially creating a $10 trillion market opportunity, highlighting nuclear energy's critical role in the clean energy transition.
- Uranium Supply Dominance: Cameco currently produces about 17% of the world's uranium, ranking second globally, and with demand expected to rise by 28% by 2030, Cameco's pricing power and sales volume are set to significantly increase, further solidifying its market position.
- Small Reactor Technology: NuScale Power is the only company with an NRC-approved small modular reactor design, and SMR technology is seen as a primary growth driver for the nuclear industry, potentially reducing construction time from a decade to two to three years and lowering costs.
- Strategic Investment Outlook: Cameco holds a 49% stake in Westinghouse, which is engaged in an $80 billion agreement with the U.S. government to build new reactors, underscoring its strategic importance and market potential in the nuclear renaissance.
See More
NuScale Power Faces Sales Challenges
- Nuclear Technology Outlook: NuScale Power has an approved design for its nuclear reactor, yet the absence of sales has left the startup in a money-losing position, necessitating cautious evaluation by investors.
- Project Collaboration Progress: The partnership with Romanian utility RoPower has received project approval; however, the lack of funding leaves the project's future uncertain, impacting the company's revenue potential.
- Market Volatility: NuScale's stock price is driven by news flow and investor sentiment, and volatility is expected to continue, particularly as sales remain unrealized, requiring investors to prepare for a long-term hold.
- Industry Optimism: Despite challenges, the outlook for NuScale Power remains positive due to rising nuclear energy demand, especially in the context of collaborations with major tech companies, which may attract investor interest in the future.
See More
SpaceX IPO Expected to Reach $1.75 Trillion Valuation
- IPO Valuation Outlook: SpaceX is expected to go public this summer with a valuation potentially reaching $1.75 trillion, making it one of the largest IPOs in history and attracting significant investor interest.
- Retail Investor Opportunity: Up to 30% of shares will be reserved for smaller retail investors, allowing millions to participate in SpaceX stock investments, which could further enhance market activity.
- Impact on NuScale: The SpaceX IPO is likely to positively affect nuclear stocks like NuScale Power, as the influx of capital and attention will highlight the energy-intensive challenges that NuScale is racing to address.
- Potential of Small Modular Reactors: While SpaceX's orbital data center ambitions face technological hurdles, NuScale stands out as the only U.S. SMR developer with design approval from the Nuclear Regulatory Commission, positioning it favorably to scale domestic SMR capacity.
See More
SpaceX IPO Could Reach $1.75 Trillion Valuation
- IPO Valuation Outlook: SpaceX is expected to go public this summer with a valuation potentially reaching $1.75 trillion, making it one of the largest IPOs in history and drawing significant investor attention.
- Retail Investor Opportunity: Up to 30% of shares will be reserved for smaller retail investors, allowing millions to participate in SpaceX stock, thereby increasing public interest in the aerospace sector.
- Impact on Nuclear Stocks: The SpaceX IPO is likely to spotlight companies like NuScale Power, particularly its small modular reactor (SMR) technology, which could be key in addressing the energy-intensive challenges faced by the AI industry.
- Market Focus Shift: While SpaceX's orbital data center plans face technological hurdles, its IPO will spark widespread discussions on energy solutions, potentially driving NuScale's expansion of SMR capabilities in the U.S. market.
See More
