NuScale Power (SMR -2.01%) has been a divisive stock since its public debut in May 2022. The bulls were impressed by the disruptive potential of its small modular reactors (SMRs) to change the status quo in the nuclear power industry while the bears claimed that its business model was unsustainable, its future was murky, and the stock's valuation was too high.
NuScale Power Corporation (NYSE:SMR ) Q4 2024 Earnings Conference Call March 3, 2025 6:00 PM ET Company Participants Scott Kozak – Director of Investor Relations John Hopkins – President and Chief Executive Officer Ramsey Hamady – Chief Financial Officer Clayton Scott – Chief Commercial Officer Conference Call Participants George Gianarikas – Canaccord Genuity Esteban Albarracin – TD Cowen Ryan Pfingst – B. Riley Eric Stine – Craig-Hallum Operator Good afternoon, and welcome to NuScale's Fourth Quarter and Full Year 2024 Earnings Results Conference Call.
SMR's fourth-quarter 2024 performance is likely to have reflected strong demand for electricity powering AI-supported data centers.
SMR faces challenges due to high valuation and delayed commercialization, making it a risky investment despite growth in clean energy demand.
Shares of NuScale Power (SMR 8.69%) continue to stun investors. After an astounding run-up in 2024, the nuclear energy stock jumped another 33% in January, according to data provided by S&P Global Market Intelligence, and is up 41% year to date as of this writing.
Hyperscalers like Amazon, Microsoft, Google, and Meta are heavily investing in SMRs for AI data centers. I believe this broader trend is sustaining NuScale's recent momentum. NuScale, the only public company with US NRC design certification for SMRs, has the potential to become the go-to SMR developer for AI data center power. I'm seeing strong retail optimism in options markets, with price action showing resilience. This suggests short-term upside potential despite the recent selloff.
When it comes to the market's language, few indicators are as powerful as price action to help retail investors understand what is happening underneath the hood of the broader themes in financial markets and industries within the United States economy. With this in mind, investors can connect price action to fundamental themes to ensure their potential investment ideas are closer to the top tier.
Nuclear energy is safer, cheaper, and more efficient, plentiful, and reliable than any other source of energy.
Breakthroughs in machine learning and artificial intelligence (AI) are transforming industries and redefining what is possible. However, this technological advancement comes with a challenge: soaring energy demands from data centers.
Shares of NuScale Power (SMR 12.92%) are flying today. The stock is up 12.7% as of 1:45 p.m.