Shares of NuScale power (NYSE: SMR)a maker of small modular reactors in the development stage, initially surfaced this morning following a White House announcement about expanding nuclear energy production.
While the stock rose as much as 13% in morning trading, it gave back those gains amid a broader pullback in small-cap stocks, a sign that the boom following Trump’s election was waning.
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As a result, the stock closed 1.1% lower, while Russell 2000 fell 1.8%, with the small-cap index giving back all of yesterday’s gains and then some.
The White House’s new plan aims to triple nuclear energy production by 2050, and the plan supports small modular reactors (SMRs), which the White House says “have great potential for both grid-based and resilient electricity behind the meter.” “
It has also credited NuScale’s VOYGR power modules and the plan aims to deploy $900 million for new SMR deployments, some of which could go directly to NuScale.
However, that momentum wasn’t enough to carry the stock to a win for the day, as headwinds in broader sentiment pushed the stock lower toward the end of the session.
NuScale has no material revenue and its shares have been very volatile based on sentiment around the nuclear sector.
Government policies are likely to have a significant impact on the nuclear sector, and recent moves by major tech companies to find nuclear sources to power their artificial intelligence data centers are also a positive sign.
The Trump administration is expected to look favorably on nuclear power, including SMRs like the kind NuScale is targeting.
Still, investors in NuScale and the broader industry should be patient, as no SMRs are expected to come online until the end of the decade. For now, expect volatility to continue as investors place bets on the major role nuclear power and SMRs will play in the future.
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