Key Points
The world demands more clean energy sources -- a trend that looks set to continue.
NuScale Power has a clear lead in the development of small modular nuclear reactors.
10 stocks we like better than NuScale Power ›
NuScale Power (NYSE: SMR) has a fascinating history. Founded in 2007, the company's mission was to create the world's first small modular nuclear reactor that would actually see real-world adoption. In 2011, the company received a huge boost when Fluor (NYSE: FLR) purchased a majority stake. Fluor would go on to invest hundreds of millions of dollars in the project, retaining its majority stake to this day.
In 2022, NuScale went public by merging with a special purpose acquisition company, giving everyday investors a chance to invest in the potential of this emerging technology.
Since 2024, shares of NuScale have soared by over 1,000%. Yet the company's market capitalization remains at just $10 billion. If you're looking for stocks that can make you a millionaire, there are two obvious reasons to give NuScale strong consideration.
Small-scale nuclear power could be a gigantic market
The world is thirsty for new forms of energy. Global populations remain on the rise, while a burgeoning middle class in several major developing countries is causing electricity demand to spike throughout many parts of the world. Throw in rising demand for renewable energy, and the result is a very favorable environment for emerging technologies like small-scale nuclear.
Small nuclear reactors, the acronym of which influenced NuScale's ticker choice, are essentially compact nuclear power plants that can be built off-site and then shipped to wherever they are needed. The relatively small size of these reactors means that they don't produce as much power as a traditional nuclear power plant, but they are significantly cheaper to build on a per-unit basis, can be much simpler to run, and are easily scalable.
At one point, many analysts believed there would never be a nuclear plant built on U.S. soil ever again. Regulatory barriers, citizens' fears, and high costs plagued most efforts to get new nuclear power online. Rising demand for renewable power has changed that narrative, however, and now the U.S. government believes the country's nuclear generation will triple by 2050. Globally, demand is expected to rise by similar rates, with the International Energy Agency upping its nuclear growth predictions earlier this month.
Small modular reactors are also being explored to power data centers -- critical infrastructure that is powering the massive rise in artificial intelligence technologies. Many AI infrastructure businesses are looking to build out new nuclear facilities to support their growing need for low-carbon power. Small-scale solar could help satisfy this need, especially in cold and remote areas where cooling costs would theoretically be lower, but local power generation is scarce.
[SRC] https://finance.yahoo.com/news/prediction-2-reasons-nuscale-power-124500471.html
