Shares of NuScale Power experienced a significant surge this week, rising over 25%, driven by a broader rally within the nuclear energy sector. According to S&P Global Market Intelligence, the company’s stock rose by 4.27%, bringing the current price to $20.51. Despite the recent gains, NuScale Power’s stock has struggled in the past few months but shows a positive trajectory of 100% growth over the last five years.
This surge can largely be attributed to a groundbreaking announcement from Meta Platforms, which declared the largest commitment to nuclear energy in history. Meta is partnering with three companies—Vistra Corp, Oklo, and TerraPower—to fund nearly 6.6 gigawatts of electricity for artificial intelligence data centers, a figure that approximates 1% of the total power consumption in the United States. While NuScale Power is not included in this ambitious venture, the news has positively influenced the entire nuclear energy sector.
Oklo, one of the companies involved in the Meta partnership, is recognized for its development of small modular reactors (SMRs), which aligns closely with NuScale’s offerings. The announcement has created widespread enthusiasm within the market, leading to elevated stock prices across the sector.
Despite this uplifting news, some analysts caution against investing in NuScale Power. The company has yet to construct a nuclear reactor or secure any contracts for its SMR technology, even though it holds a certified design from the Nuclear Regulatory Commission (NRC). The fact that NuScale Power was not included in Meta’s deal raises concerns about its market position and future prospects.
Trading at a market cap of $6 billion, NuScale Power has minimal revenue and has never turned a profit. The long timeframes required to build nuclear contracts suggest that it may be years before the company generates any substantial earnings, should it manage to secure a contract.
Given these drawbacks, analysts recommend exercising caution when considering an investment in NuScale Power, as the stock’s recent gains may not reflect the company’s underlying business viability.
