NuScale Power's Nuclear Energy Prospects and Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: Fool
- First SMR Approval: In 2020, NuScale became the first U.S. company to receive NRC approval for a small modular reactor (SMR) design; however, it has yet to deploy a commercial SMR model in a real-world setting, indicating a slow commercialization process.
- Surging Power Demand: Despite the expected surge in electricity demand from artificial intelligence and data centers, NuScale has not emerged as the most obvious beneficiary in the tech sector, although market expectations for its potential remain high.
- Slow Project Progress: Over the next three years, NuScale is likely to continue advancing its SMR plant project in Romania and the deployment of 6GW of SMRs to the Tennessee Valley Authority (TVA), although progress on these projects may remain slow.
- Market Opportunities and Risks: If NuScale's commercial partner ENTRA1 Energy can secure customers in the data center space, it could accelerate the TVA project's completion, potentially bringing significant revenue and validating NuScale's technology.
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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: 9.570
Low
18.50
Averages
32.77
High
60.00
Current: 9.570
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.
NuScale Power's Progress on SMR Projects
- Market Leadership: NuScale Power stands as the only U.S. company with an NRC-certified small modular reactor (SMR) design, and while it has yet to deploy a commercial model, its market potential remains significant.
- Project Development Focus: Over the next three years, NuScale will concentrate on developing its SMR plant in Romania and deploying 6 gigawatts of SMRs to the Tennessee Valley Authority (TVA), which is expected to validate its technology and enhance market acceptance.
- Potential Customer Expansion: In the most optimistic scenario, NuScale's commercial partner ENTRA1 Energy could secure customers in the data center sector, further advancing the TVA project and potentially generating substantial revenue for the company.
- Investor Watchpoint: Although NuScale's first SMR is unlikely to come online for several years, the success of its developing projects will directly impact the company's future position in the nuclear energy market, necessitating close attention from investors.
See More
NuScale Power's Nuclear Energy Prospects and Challenges
- First SMR Approval: In 2020, NuScale became the first U.S. company to receive NRC approval for a small modular reactor (SMR) design; however, it has yet to deploy a commercial SMR model in a real-world setting, indicating a slow commercialization process.
- Surging Power Demand: Despite the expected surge in electricity demand from artificial intelligence and data centers, NuScale has not emerged as the most obvious beneficiary in the tech sector, although market expectations for its potential remain high.
- Slow Project Progress: Over the next three years, NuScale is likely to continue advancing its SMR plant project in Romania and the deployment of 6GW of SMRs to the Tennessee Valley Authority (TVA), although progress on these projects may remain slow.
- Market Opportunities and Risks: If NuScale's commercial partner ENTRA1 Energy can secure customers in the data center space, it could accelerate the TVA project's completion, potentially bringing significant revenue and validating NuScale's technology.
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NuScale Power's Progress on SMR Projects
- Market Leadership: NuScale Power stands as the only U.S. company with an NRC-certified small modular reactor (SMR) design, and while it has yet to deploy a commercial model, its market potential remains significant.
- Project Development Focus: Over the next three years, NuScale will concentrate on developing its SMR plant in Romania and deploying 6 gigawatts of SMRs to the Tennessee Valley Authority (TVA), which is expected to validate its technology and enhance market acceptance.
- Potential Customer Expansion: In the most optimistic scenario, NuScale's commercial partner ENTRA1 Energy could secure customers in the data center sector, further advancing the TVA project and potentially generating substantial revenue for the company.
- Investor Watchpoint: Although NuScale's first SMR is unlikely to come online for several years, the success of its developing projects will directly impact the company's future position in the nuclear energy market, necessitating close attention from investors.
See More
NuScale Power's Nuclear Energy Prospects and Challenges
- First SMR Approval: In 2020, NuScale became the first U.S. company to receive NRC approval for a small modular reactor (SMR) design; however, it has yet to deploy a commercial SMR model in a real-world setting, indicating a slow commercialization process.
- Surging Power Demand: Despite the expected surge in electricity demand from artificial intelligence and data centers, NuScale has not emerged as the most obvious beneficiary in the tech sector, although market expectations for its potential remain high.
- Slow Project Progress: Over the next three years, NuScale is likely to continue advancing its SMR plant project in Romania and the deployment of 6GW of SMRs to the Tennessee Valley Authority (TVA), although progress on these projects may remain slow.
- Market Opportunities and Risks: If NuScale's commercial partner ENTRA1 Energy can secure customers in the data center space, it could accelerate the TVA project's completion, potentially bringing significant revenue and validating NuScale's technology.
See More
NASDAQ 100 Pre-Market Activity Overview
- Market Performance: The NASDAQ 100 Pre-Market Indicator rose by 18.91 points to 29,465.09, indicating a positive market sentiment despite ongoing volatility.
- Active Stocks: Virgin Galactic Holdings, Inc. (SPCE) fell by $0.78 to $4.95 with a trading volume of 13,009,297 shares, currently priced at 165% of its target price, reflecting investor caution.
- Recommendation Ratings: Nokia Corporation (NOK) increased by $0.13 to $14.22 with 6,973,700 shares traded, and Zacks reports its average recommendation is in the
See More
NASDAQ 100 Pre-Market Update
- Market Movement: The NASDAQ 100 Pre-Market Indicator fell by 206.16 points to 28,878.34, indicating a weak market sentiment that could impact investor confidence and subsequent trading strategies.
- Active Stock Performance: ProShares UltraPro Short QQQ (SQQQ) rose by $1.65 with a trading volume of 12,245,265 shares, representing a 21.26% increase from its 52-week low, reflecting investors' demand for hedging against market downturns.
- Nokia Stock Analysis: Nokia Corporation (NOK) decreased by $0.2499 to $13.60 with 9,084,608 shares traded, and analysts generally recommend a
See More
Investment Opportunities in Energy and Resources Amid AI Revolution
- Data Center Energy Demand: As data centers increasingly require continuous power, small nuclear reactors are expected to become a primary energy source, presenting significant market opportunities for companies like NuScale and driving growth in the clean energy sector.
- Surge in Resource Demand: The demand for natural resources such as uranium and copper will rise sharply to support the construction and operation of data centers, creating long-term profit potential for producers amid the current supply constraints, especially as the AI industry expands rapidly.
- Energy Infrastructure Investment: With the rising energy demands of AI infrastructure, energy companies like Next Era Energy are actively investing in new buildings and infrastructure to meet future energy needs, enhancing their market position and providing new opportunities for investors.
- Structural Market Shift: Analysts indicate that the rapid development of the AI industry will lead to a structural shift in the energy and natural resources markets, prompting investors to focus on the long-term growth potential in these sectors to capitalize on upcoming investment opportunities.
See More
NASDAQ 100 Pre-Market Indicator Rises Significantly
- Market Indicator Surge: The NASDAQ 100 pre-market indicator rises by 242.16 points to 29,656.42, indicating a positive shift in market sentiment that may attract more investors to tech stocks.
- Active Stock Performance: CID HoldCo, Inc. (DAIC) increases by $0.81 to $3.07 with a trading volume of 12,385,446 shares, suggesting growing market interest in this stock.
- Nuvalent, Inc. Trading Dynamics: Nuvalent, Inc. (NUVL) jumps by $34.41 to $122.90 with 10,899,476 shares traded, indicating strong buy signals, while its days to cover stands at 9.47, reflecting optimistic market expectations for its future performance.
- Nokia and Redwire Recommendations: Nokia Corporation (NOK) rises by $0.2097 to $14.80, with current recommendations in the
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