This week witnessed a significant surge of 28% in NuScale Power's share price, reaching an unprecedented all-time high.
NuScale Power (SMR with a 1.17% increase) stock continues its relentless momentum, soaring 28% this week to reach an all-time high of $29.52 per share during Friday afternoon trading, as reported by S&P Global Market Intelligence.
This month alone, the nuclear energy stock has experienced a remarkable surge of 50%, following a 65% rise in October. But what's driving the ongoing escalation in NuScale Power's stock price?
Could nuclear energy triumph under Trump?
Investors in NuScale Power are placing significant bets on the company's potential growth as the U.S. pursues policies to strengthen its domestic nuclear energy sector. Recently, the White House disclosed its intention to increase U.S. nuclear energy production by at least threefold by 2050. The plan includes incentives for the advancement of small modular reactors (SMRs), making NuScale Power's specialty a highlight.
The heart of the matter, then, is NuScale Power's mission to develop scalable SMRs that offer affordable, dependable, and carbon-free electricity. SMRs are distinctively smaller in size and can be built in locations unsuitable for traditional nuclear power plants.
This week, investors of nuclear energy stocks like NuScale Power found an additional reason to increase their investment: President-elect Donald Trump's choice for the next head of the Department of Energy (DOE), Christopher Wright.
The situation becomes more intriguing at this juncture.
Wright is the CEO of Denver-based hydrofracking company Liberty Energy, and he's an ardent advocate for fossil fuels. In a 2023 LinkedIn video, he even declared, "We are not experiencing a climate crisis, and the transition to renewable energy isn't occurring."
Though environmental activists may view Trump's presidency as detrimental to the renewable energy sector, the nuclear energy sector has strong support from both Republican and Democratic political groups.
What's the future for NuScale Power stock?
NuScale Power still has a lengthy road ahead, as the company may still need years to bring its flagship "VYOGR" SMR power plant into commercial operation. However, the company's underlying narrative is one that piques the interest of bold investors: a startup building potentially groundbreaking technology. To the credit of both investors and NuScale Power, the company has secured some DOE cost-sharing awards, and its SMR design has been endorsed as the first by the U.S. Nuclear Regulatory Commission.
In a nutshell, SMRs and NuScale Power hold strong potential, but only if the technology proves viable and practical. Despite personal opinions, NuScale Power stock remains a speculative gamble for those without a strong stomach for risk.
Investors who are interested in finance and seeking high returns might consider increasing their investment in nuclear energy stocks, given the potential growth of companies like NuScale Power. The U.S. government's plan to increase nuclear energy production and the endorsement of NuScale Power's SMR design by the Nuclear Regulatory Commission indicate promising opportunities for investing in this sector.
With Trump's administration showing support for nuclear energy and the promising potential of SMRs, now might be an opportune time for individuals with a taste for risk to consider investing their money in NuScale Power.
