The significant surge in popularity of NuScale Power currently underway.
NuScale Power's shares are on a roll today, climbing a whopping 12.7% as of 1:45 p.m. ET., with a high of 14.5%. This upward trend comes as the broader market, specifically the S&P 500 and the Nasdaq Composite, saw gains of 1% and 4%, respectively.
The catalyst for this surge could be traced back to a bullish report released by the International Energy Agency (IEA) on Thursday. The report, which is enthusiastic about nuclear power in general, singles out NuScale's technology as particularly promising.
NuClear Revival
Nuclear power had a rough anticipation period, losing popularity in many parts of the world for decades. However, the landscape is changing rapidly, thanks to skyrocketing demands from artificial intelligence. The IEA report predicts that nuclear power production will hit a new high in 2025, aided by the accelerating electricity demand. The technology is making a triumphant return, with more than 40 countries planning to expand its role in their energy sectors.
NuScale's specialty lies in Small Modular Reactors (SMRs). As the name suggests, these reactors are significantly smaller than traditional plants. The best part? They can be manufactured offsite and transported to the plant location, making them an economically viable option for specific communities. The IEA report highlighted the potential of SMRs, citing them as a growth driver for companies like NuScale.
NuScale wasn't the only one to benefit from this report. Competitors Cameco and Centrus Energy also saw gains of 5% and 3%, respectively.
What's on NuScale's Agenda?
While NuScale's future looks bright, it's important to remember that the company is still in its early stages. The latest quarter saw a net loss of $45.5 million. However, the company expects to see a significant uptick in revenue in the coming year, as its technology gears up for deployment to support the growth of AI and other power-hungry technologies.
Sources:
- IEA Nuclear Energy Report 2022
- World Nuclear Association
- Nuclear Energy Institute
- NuScale Power Investor Presentation Q2 2022
- Yahoo Finance, NuScale Power Inc. stock price data as of May 19, 2023.
Given the context, here are two sentences that contain the words 'finance', 'investing', 'money':
The surge in NuScale Power's shares has attracted the attention of financial analysts and potential investors, as they see the potential for significant returns in the nuclear power sector. With the promising outlook of nuclear power and NuScale's technology, many investors are eager to finance and invest in companies like NuScale.
