Shares of this nuclear stock got quite the jolt this week.
Extending its powerful performance in May, NuScale Power (SMR 0.23%) stock has continued charging higher this week as investors celebrate some auspicious news.
Prior to the start of this week, shares of NuScale Power, a developer of innovative nuclear power plants, had risen more than 34% in May, and, according to data provided by S&P Global Market Intelligence, NuScale Power has climbed 12% from the end of trading last Friday through the close of yesterday’s trading session.
Project development seems to be moving forward
Although the company didn’t report the update itself, news reports surfaced this week that NuScale Power has agreed to a supply agreement with Standard Power with regards to 24 of NuScale Power’s small modular reactors (SMRs).
Standard Power, a developer of modular data centers, announced in October 2023 that it was interested in using NuScale Power’s power solutions at two separate sites, where up to 12 units (at each site) would be used to provides power for new data centers.
Should NuScale Power be a new position in your portfolio?
Citing research from the International Energy Agency, NuScale Power projects that global data center electricity consumption will more than double from 460 terawatt-hours in 2022 to 1,000 terawatt-hours in 2026. NuScale Power contends that its SMRs provide data center operators an excellent option to meet growing electricity demands.
Although the rumors regarding Standard Power’s selection of NuScale Power for its SMRs is encouraging, prospective investors should look for more material developments from the company than simply rumors. Consequently, only those investors comfortable with a more speculative investment should have NuScale Power on their buy lists — especially since the company is only generating minimal revenue at the moment.
Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends NuScale Power. The Motley Fool has a disclosure policy.