Shares of NuScale power (NYSE: SMR) rose today after the maker of small modular reactors in the development phase reported third-quarter results last night.
While the numbers weren’t the focus, management’s commentary on progress seemed to satisfy investors.
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As a result, the stock rose 4.3% as of 1:42 PM ET after rising as much as 19.2% earlier in the session.
Nuscale reported revenue of $475,000 in the quarter and a net loss of $17.5 million, or $0.18 per share, compared to estimates of $3.14 million and a loss of $0.09 per share. The company ended the quarter with $161.7 million in short-term investments and no debt.
However, these numbers are largely irrelevant because the stock is seen as a bet on big tech companies’ embrace of nuclear power to run its data centers, and NuScale is a potential leader in that sector.
The company remains the only manufacturer of small modular reactors (SMRs) approved by the Department of Energy. It also signed a contract with Fluorinethe majority shareholder, to proceed with a new study for an SMR power plant in Romania, which would be the first of its kind in Europe. Fluor plans to deconsolidate its stake in NuScale.
Management also noted progress in working with data center/artificial intelligence (AI) customers and said supply chain partner Doosan Enerbility was making progress with its first NuScale Power Modules.
The data center story was the main story driving NuScale stock higher, and according to McKinsey, data center consumption of US electricity is expected to grow from 3%-4% to 11%-12% between 2023 and 2030, creating huge opportunities. for NuScale and its colleagues.
Keep an eye on NuScale’s project development as it still hasn’t gotten a project off the ground, but given the interest in nuclear power construction, the upside potential for the stock is significant.
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