NuScale Power: 1 Catalyst That Will Make or Break This Nuclear Stock

Nuscale Power

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The artificial intelligence (AI) boom is fueling a nuclear renaissance. For the industry to grow, massive amounts of energy-intensive compute power will need to be built. As a low-carbon, high-baseload energy source, nuclear power is a promising solution.

NuScale Power (NYSE: SMR) is the only small modular reactor (SMR) developer in the U.S. approved by regulators to construct an SMR facility. SMRs are ideal for the AI data center build-out, given that they can be built more quickly and at a lower cost than conventional nuclear plants. This smaller footprint allows an SMR to be constructed near the data center infrastructure itself.

Despite growth potential, NuScale shares are down 40% this year. Skepticism is reasonable. Only two SMR systems currently exist worldwide. NuScale has never commercialized any of its SMR designs. Plus, the company already experienced a sizable failure in 2023 when its biggest customer (at the time) canceled its project.

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