Why NuScale Power Stock Slid 31% Last Month
Shares of NuScale Power (NYSE: SMR) fell 31% in August, according to data from S&P Global Market Intelligence. The nuclear energy upstart and designer of small modular reactors (SMRs) is experiencing wild gyrations with its stock price. The stock is up 432% in the last year and trades at a market cap of $11.5 billion, even though it generates minimal revenue and is burning a lot of cash.
Nuclear energy stocks soared at the beginning of this summer, with the current presidential administration's push to accelerate the development of nuclear energy to keep up with data center demand around artificial intelligence (AI). President Trump signed an executive order for advanced nuclear reactor technologies, of which NuScale Power is one.
In fact, NuScale Power is the only SMR company to have its design approved by the Nuclear Regulatory Commission (NRC), which could give it a head start in winning customer contracts. However, it has failed so far to win any customer contracts outside prospective contracting from a Romanian power company that's exploring whether to use SMRs for its upcoming energy needs.
Source Fool.com
