NuScale Power (NYSE: SMR) has captivated Wall Street, with its stock soaring over 100% in 2024. This enthusiasm stems from NuScale’s promising developments in the nuclear power sector, but investors should be mindful of underlying considerations before jumping in.The surge in NuScale’s stock price isn’t without cause. In late 2023, NuScale secured its first order to supply 24 small-scale nuclear power plants for data centers in Ohio and Pennsylvania. This milestone is significant, as nuclear power offers a consistent base load power source, unlike intermittent solar and wind energy. Given the rising energy demands of data centers driven by artificial intelligence, nuclear energy presents a compelling solution.
NuScale’s small modular reactors (SMRs) are designed to be smaller, safer, and easier to produce than traditional large-scale nuclear plants. Importantly, NuScale is the only SMR technology provider with U.S. regulatory approval, enhancing its market appeal. This strong narrative has likely fueled the stock’s rapid rise. However, despite these positive developments, investors should approach with caution. Evaluating long-term viability, regulatory challenges, and potential market fluctuations is crucial before committing to NuScale Power’s stock. While the current excitement is justified, a thorough analysis of potential risks is necessary for informed investment decisions.