Shares of NuScale Power (NYSE: SMR) have been on a roller coaster ride over the past three years. They have risen as high as 575% over the period, but are currently only up around 5%, thanks to an 80% drawdown from their highs. That, however, could make them worth buying for long-term investors. Here's the big reason why you might want to step aboard.
Right now, NuScale Power bleeds red ink, and a lot of it. That's not unexpected, given that it is a start-up introducing new nuclear power technology to the world. That technology is small modular nuclear reactors (SMRs). NuScale Power has key regulatory approvals and is working with several potential partners as it seeks its first sale. The problem is that it doesn't actually have that sale in the books, and until it does, the company's technology remains untested.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
SMRs could be a game changer for the nuclear power industry. They are factory-built, use the most modern safety protocols, and are small enough to be moved easily and placed relatively close to where they are needed. An easy win would be using an SMR to power an artificial intelligence data center. But that's not the only opportunity, since NuScale's SMRs can be linked together to create a utility-scale facility.
The big reason to buy NuScale Power is that you believe SMRs will be a big market in the future. However, the company's future remains highly uncertain until it has actually sold one of its SMRs, built it, and seen it tested in a real-world environment. This is not a stock for the faint of heart.
Right now, NuScale Power bleeds red ink, and a lot of it. That's not unexpected, given that it is a start-up introducing new nuclear power technology to the world. That technology is small modular nuclear reactors (SMRs). NuScale Power has key regulatory approvals and is working with several potential partners as it seeks its first sale. The problem is that it doesn't actually have that sale in the books, and until it does, the company's technology remains untested.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
SMRs could be a game changer for the nuclear power industry. They are factory-built, use the most modern safety protocols, and are small enough to be moved easily and placed relatively close to where they are needed. An easy win would be using an SMR to power an artificial intelligence data center. But that's not the only opportunity, since NuScale's SMRs can be linked together to create a utility-scale facility.
The big reason to buy NuScale Power is that you believe SMRs will be a big market in the future. However, the company's future remains highly uncertain until it has actually sold one of its SMRs, built it, and seen it tested in a real-world environment. This is not a stock for the faint of heart.
11 days ago
