Nuclear energy is experiencing a resurgence, with Bank of America projecting it could grow into a $10 trillion market driven by rising electricity demand from AI-powered data centers, industrial electrification, and grid modernization. Companies like NuScale Power and BWX Technologies are poised to benefit, albeit through different business strategies.
NuScale Power is focusing on small modular reactor (SMR) technology and has secured key approvals, while collaborating on a potential 6 gigawatt project with the Tennessee Valley Authority. However, it remains an emerging player with limited revenues and commercial reactor sales. In contrast, BWX Technologies is established, generating consistent revenue from naval nuclear propulsion and commercial services, with a backlog of approximately $8.7 billion, positioning it favorably for future expansion.
Year to date, BWX shares are up 18.4%, while NuScale shares have declined 29%. While NuScale shows significant long-term upside potential, BWX is seen as offering greater stability and visibility, supported by diversified revenue streams and a reasonable valuation at 4.73 times forward sales, compared to NuScale’s 34.29 times.
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