Shares of NuScale Power (NYSE: SMR) experienced an uptick today following the company’s release of third-quarter results last night.
The focus wasn’t solely on the numbers; instead, management updates on their advancements seemed to resonate well with investors.
The stock increased by 4.3% at 1:42 p.m. ET, after hitting a high of 19.2% earlier in the trading session.
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NuScale’s Steady Progress in Nuclear Innovation
NuScale posted revenues of $475,000 for the quarter, alongside a net loss of $17.5 million, equating to a loss of $0.18 per share. These results were against the estimates of $3.14 million in revenue and a loss of $0.09 per share. At the end of the quarter, the company had $161.7 million in short-term investments and no debt.
However, these financial figures are secondary to the broader narrative; the stock is largely viewed as a gamble on the expanding use of nuclear energy by major tech firms to power their data centers. Given its unique position, NuScale is poised to be a frontrunner in this sector.
Nuscale remains the only small modular reactor (SMR) manufacturer approved by the Department of Energy. Notably, it signed a contract with Fluor, its majority stakeholder, to initiate a new study for an SMR power plant in Romania, marking the first such project in Europe. Fluor has plans to reduce its ownership stake in NuScale over time.
Management has also highlighted advancements in collaborations with customers in the data center and artificial intelligence (AI) markets. Additionally, supply chain ally Doosan Enerbility is progressing with its initial NuScale Power Modules.
Will NuScale Continue Its Climb?
The narrative surrounding data centers has been pivotal in propelling NuScale’s stock price upwards. According to McKinsey, the electricity consumption by data centers in the U.S. is predicted to rise from 3%-4% to 11%-12% between 2023 and 2030, offering notable opportunities for NuScale and its competitors.
Future monitoring of NuScale’s project developments is crucial, as no projects are operational yet. However, with growing interest in nuclear energy, the stock’s potential for growth remains significant.
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Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool recommends NuScale Power. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
