In the year 2024, NuScale Power's shares experienced a significant surge, skyrocketing an impressive 445% in value.
By the close of 2023, it was evident that bears had been far more enthusiastic about pressing the sell button for NuScale Power (SMR -0.16%) shares compared to the bulls' interest in bolstering their portfolios with this stock. The stock plummeted an alarming 68% throughout the year. However, the market began to take notice of NuScale Power's potential as a nuclear power solution for data centers grappling with the immense electricity demands imposed by artificial intelligence (AI) computations in 2024.
S&P Global Market Intelligence reported a staggering 445% increase in NuScale Power shares in 2024.
What Sparked the Surge in NuScale Power Stocks?
NuScale Power began the year 2024 on a shaky note as shares dipped 5.8% from the start until February. But March made an entrance unlike any other, propelling shares upward. On March 14, NuScale Power disclosed its fourth-quarter 2023 financial results, including the commencement of manufacturing its NuScale Power Modules. The following day, shares skyrocketed more than 8%.
March 18 marked the actual turning point for the stock, as Canaccord Genuity analysts significantly boosted their price target on NuScale stock from $4.25 to $8. The stock price soared by an additional 54% in March.
Investors' enthusiasm continued to grow in May when they learned that Standard Power was considering utilizing NuScale Power's small module reactors for their data centers in Ohio and Pennsylvania. This news drove a 51% upward surge in the stock in May. Just a short while later, investors were enticed to diversify their portfolios with NuScale Power stocks due to the U.S. government recognizing nuclear power as a viable option to meet the increasing power demands in the country. As a result, the stock price escalated an additional 34% in June.
Investors demonstrated their ongoing optimism throughout 2024, bolstered by reports that Amazon and Alphabet were assessing nuclear power as a means of addressing the escalating power requirements stemming from AI, coupled with speculation in November that President-Elect Trump would advocate for the development of the nuclear industry during his term.
Is Now the Ideal Time to Invest in NuScale Power Stocks?
While the S&P 500 has dipped less than 1% since the beginning of 2025, investors have remained steadfast in their support for NuScale Power stocks, driving them up by approximately 5%. Given the highly speculative nature of NuScale Power’s operations - the company has yet to commence commercial operations of its small modular reactors and remains far from profitability – only investors with a propensity for risk should consider buying shares.
For those aiming for more conservative nuclear power exposure, an exchange-traded fund might be a more suitable option.
After the U.S. government recognized nuclear power as a viable solution to meet increasing power demands, many investors saw an opportunity to diversify their portfolios, leading to an additional 34% increase in NuScale Power stocks in June. In the pursuit of sustainable energy solutions, some investors are considering investing their money in NuScale Power, given the potential of nuclear power as a solution for the electricity demands imposed by artificial intelligence computations.
