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Can NuScale Power Lead in Clean Energy and Boost Revenue Growth?
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Key Takeaways
SMR benefits from the rising demand for clean energy and the power-hungry AI-driven data centers.
NuScale's SMR tech draws key partnerships and expands into desalination and hydrogen production.
SMR stock has soared 137% YTD but trades at a steep premium with a forward P/S of 105.08X.
NuScale Power (SMR - Free Report) is benefiting from high demand for electricity and clean energy, as well as the increasing need for AI-powered data centers.
The company is gaining strong momentum across various sectors, particularly as energy demand continues to rise. The increasing energy demand, driven by sectors like data centers, which require continuous, reliable, and carbon-free energy, has been a major growth driver.
Data centers are expected to triple their energy use over the next three years, accounting for 12% of U.S. electricity consumption by 2028. This growth trend presents a significant opportunity for NuScale Power, as its small modular reactor technology offers consistent, carbon-free energy that can meet the increasing demands of hyperscale data centers.
NuScale Power’s advancements in SMR technology and its growing partnerships with tech giants and financial institutions position it as a key player in the future of sustainable, carbon-free energy. The company recently announced that its research programs are integrating small modular reactor technology with desalination and hydrogen production, enabling carbon-free, clean water and energy solutions.
NuScale Power continues to attract strong interest from major technology companies and infrastructure capital. Companies like Meta Platforms, Microsoft, Alphabet and Oracle have made substantial commitments to using nuclear energy, including SMR technology, to meet their sustainability goals, which positively impacts NuScale Power’s market positioning.
SMR Faces Stiff Competition
SMR faces stiff competition in the nuclear energy industry from companies such as Centrus Energy (LEU - Free Report) and Constellation Energy (CEG - Free Report) .
Centrus Energy is benefiting from increased demand for nuclear fuel, particularly High-Assay Low-Enriched Uranium (HALEU), and from its role in developing and deploying advanced nuclear technologies like SMRs.
Centrus Energy recently announced that the U.S. Department of Energy has extended its HALEU production contract through June 30, 2026, as part of Phase III of its ongoing agreement. This follows Centrus’ successful delivery of 20 kg of HALEU in Phase I and ongoing production of 900 kg under Phase II. The extension marks the start of a potential eight additional years of production to support advanced nuclear reactor development.
Constellation Energy is deeply committed to nuclear power, which serves as the foundation of its carbon-free electricity production. The company operates the largest nuclear fleet in the country, generating nearly 90% of its energy annually without producing carbon emissions. Additionally, Constellation Energy is working to expand its nuclear presence by renewing licenses for existing plants, securing long-term power purchase agreements, and exploring opportunities to construct new reactors.
SMR’s Share Price Performance, Valuation and Estimates
SMR shares have surged 113.3% in the year-to-date period, outperforming the Zacks Computer & Technology sector’s appreciation of 4.5% and the Zacks Electronics- Power Generation industry’s rise of 109.7%.
SMR Stock Perfomance
Image Source: Zacks Investment Research
SMR stock is trading at a premium, with a forward 12-month Price/Sales of 105.08X compared with the Computer & Technology sector’s 6.51X. SMR has a Value Score of F.
SMR Valuation
Image Source: Zacks Investment Research
For 2025, the Zacks Consensus Estimate for loss is pegged at 42 cents per share, which has widened by a penny over the past 30 days. SMR reported earnings of 42 cents per share in the year-ago quarter.
Image: Bigstock
Can NuScale Power Lead in Clean Energy and Boost Revenue Growth?
Key Takeaways
NuScale Power (SMR - Free Report) is benefiting from high demand for electricity and clean energy, as well as the increasing need for AI-powered data centers.
The company is gaining strong momentum across various sectors, particularly as energy demand continues to rise. The increasing energy demand, driven by sectors like data centers, which require continuous, reliable, and carbon-free energy, has been a major growth driver.
Data centers are expected to triple their energy use over the next three years, accounting for 12% of U.S. electricity consumption by 2028. This growth trend presents a significant opportunity for NuScale Power, as its small modular reactor technology offers consistent, carbon-free energy that can meet the increasing demands of hyperscale data centers.
NuScale Power’s advancements in SMR technology and its growing partnerships with tech giants and financial institutions position it as a key player in the future of sustainable, carbon-free energy.
The company recently announced that its research programs are integrating small modular reactor technology with desalination and hydrogen production, enabling carbon-free, clean water and energy solutions.
NuScale Power continues to attract strong interest from major technology companies and infrastructure capital. Companies like Meta Platforms, Microsoft, Alphabet and Oracle have made substantial commitments to using nuclear energy, including SMR technology, to meet their sustainability goals, which positively impacts NuScale Power’s market positioning.
SMR Faces Stiff Competition
SMR faces stiff competition in the nuclear energy industry from companies such as Centrus Energy (LEU - Free Report) and Constellation Energy (CEG - Free Report) .
Centrus Energy is benefiting from increased demand for nuclear fuel, particularly High-Assay Low-Enriched Uranium (HALEU), and from its role in developing and deploying advanced nuclear technologies like SMRs.
Centrus Energy recently announced that the U.S. Department of Energy has extended its HALEU production contract through June 30, 2026, as part of Phase III of its ongoing agreement. This follows Centrus’ successful delivery of 20 kg of HALEU in Phase I and ongoing production of 900 kg under Phase II. The extension marks the start of a potential eight additional years of production to support advanced nuclear reactor development.
Constellation Energy is deeply committed to nuclear power, which serves as the foundation of its carbon-free electricity production. The company operates the largest nuclear fleet in the country, generating nearly 90% of its energy annually without producing carbon emissions. Additionally, Constellation Energy is working to expand its nuclear presence by renewing licenses for existing plants, securing long-term power purchase agreements, and exploring opportunities to construct new reactors.
SMR’s Share Price Performance, Valuation and Estimates
SMR shares have surged 113.3% in the year-to-date period, outperforming the Zacks Computer & Technology sector’s appreciation of 4.5% and the Zacks Electronics- Power Generation industry’s rise of 109.7%.
SMR Stock Perfomance
Image Source: Zacks Investment Research
SMR stock is trading at a premium, with a forward 12-month Price/Sales of 105.08X compared with the Computer & Technology sector’s 6.51X. SMR has a Value Score of F.
SMR Valuation
Image Source: Zacks Investment Research
For 2025, the Zacks Consensus Estimate for loss is pegged at 42 cents per share, which has widened by a penny over the past 30 days. SMR reported earnings of 42 cents per share in the year-ago quarter.
NuScale Power Corporation Price and Consensus
NuScale Power Corporation price-consensus-chart | NuScale Power Corporation Quote
SMR currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.