NuScale power (NYSE: SMR) The stock is unstoppable: It rose 28% this week to a record high of $29.52 per share at its all-time high in trading through Friday afternoon, according to data from S&P Global Market Intelligence.
Nuclear energy stocks have now risen as much as 50% in November, after up 65% in October. Why is NuScale Power stock soaring higher?
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Investors in NuScale Power are betting big on the company’s potential growth as the US continues to take steps to boost the domestic nuclear power industry. Last week, the White House announced its intention to “at least” triple U.S. nuclear energy production by 2050. Plans include supporting the development of small modular reactors (SMRs).
That’s what NuScale Power is all about: building scalable SMRs to deliver cheap, reliable and CO2-free electricity. SMRs are significantly smaller and can be built in locations that are not suitable for traditional nuclear reactors.
This week, investors in nuclear energy stocks like NuScale Power found another reason to bet more money: President-elect Donald Trump’s choice for the next Secretary of Energy (DOE), Chris Wright.
At this point things get interesting.
Wright is the CEO of the Denver-based fracking company Freedom energy and a staunch supporter of fossil fuels. In a video posted to LinkedIn in 2023, Wright even said, “There is no climate crisis, nor are we in the middle of an energy transition.”
So while climate activists believe Trump as president is bad news for the renewable energy industry, the nuclear power industry should still thrive as the energy source has received support from both Republicans and Democrats.
NuScale Power still has a long way to go, as the company may still take years to bring its flagship “VYOGR” SMR plant to market. Yet the story of NuScale Power is exactly the kind of story that appeals to aggressive investors: a startup building a technology that, if proven, could be something big. To the credit of investors – and NuScale – the company has won a number of DOE cost share awards, and the SMR design is the first to be certified by the U.S. Nuclear Regulatory Commission.
Long story short: SMRs and NuScale Power have solid potential, but only if the technology is proven and feasible. Like it or not, NuScale Power stock remains a speculative bet that is not for the faint of heart.
