NuScale Power Sees Surge in Stock After Q3 Results
The nuclear energy sector is buzzing, and NuScale Power (NYSE: SMR) is at the forefront. Shares of the development-stage maker of small modular reactors skyrocketed today, following the release of its third-quarter results. While the financial numbers may not have been the main attraction, management’s commentary on its progress left investors feeling optimistic.
A Bet on Nuclear Energy
NuScale’s stock rose 4.3% as of 1:42 p.m. ET, with a high of 19.2% earlier in the session. The company reported revenue of $475,000 and a net loss of $17.5 million, or $0.18 per share, which fell short of estimates. However, these numbers are largely overshadowed by the company’s potential in the nuclear energy space. As the only maker of small modular reactors (SMRs) approved by the Department of Energy, NuScale is poised to capitalize on big tech’s growing interest in nuclear energy to power its data centers.
Key Partnerships and Progress
NuScale’s partnership with Fluor, its majority owner, is moving forward with a new study for an SMR power plant in Romania – a first for Europe. Additionally, the company is making headway with data center and artificial intelligence (AI) customers, and supply chain partner Doosan Enerbility is progressing on its first NuScale Power Modules. These developments bode well for NuScale’s future prospects.
Data Center Consumption on the Rise
According to McKinsey, data center consumption of U.S. electricity is expected to surge from 3%-4% to 11%-12% between 2023 and 2030. This presents a massive opportunity for NuScale and its peers. As the demand for nuclear energy grows, NuScale’s upside potential becomes increasingly attractive.
A Word of Caution
While NuScale’s stock may be on the rise, it’s essential to approach with caution. The company still hasn’t brought a project online, and investors should keep a close eye on its project development. Nevertheless, with interest in nuclear energy building, NuScale’s potential for growth is considerable.
Expert Insights
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