Why NuScale Power Stock Soared 41% in September and Is Up 290% in 2024

NuScale Powerhis (SMR 0.48%) The stock has been on a roller coaster of sorts in 2024, hitting an all-time high of $16.91 in mid-July, but then fell somewhat in the fall. Shares of NuScale rebounded dramatically in September, rising 40.7% for the month, according to data from S&P Global Market Intelligence. The stockpile of nuclear power is now up over 284% in 2024 at the time of writing.

NuScale Power is a young start-up developing small and scalable modular nuclear power plants based on Small Modular Reactor (SMR) technology to provide reliable and cost-effective electricity. As the world increasingly seeks alternatives to fossil fuels to reduce carbon emissions and improve energy security, nuclear-based SMR technology appears promising. Recent industry developments and investor sentiment are driving NuScale Power stock to new highs.

The nuclear power industry is in evidence

For clean energy advocates, nuclear power is back in the spotlight. In September, 14 major global banks and financial institutions expressed their support for nuclear power at an event in New York City. Banks supports the Triple Nuclear Energy Declaration endorsed by more than 20 countries at last year’s COP28 summit. The declaration sets the goal of tripling global nuclear power capacity by 2050.

Lately, at least two tech giants have also voiced their support for nuclear power. Microsoft relies heavily on it to meet its clean energy goals and has signed a 20-year power purchase agreement with the utility giant Constellation Energy in September. Following the deal, the company plans to restart a nuclear power plant that has been closed since 1979 at Three Mile Island, Pennsylvania.

last month, Oracle CEO Larry Ellison has unveiled ambitious plans to use nuclear power for his artificial intelligence (AI) data centers via SMR.

Other notable recent developments in the nuclear power industry are the Department of Energy’s (DOE) Notice of Intent to commit $900 million to finance SMR technology and the US Export-Import Bank EXIM’s latest commitment to lend $98 million of dollars for an SMR project in Romania.

With small modular nuclear reactors grabbing eyeballs, it’s no surprise that NuScale Power stock soared in September and has nearly quadrupled this year. NuScale Power’s SMR is the first with a design certified by the US Nuclear Regulatory Commission. It has also won four cost-share awards worth nearly $600 million from the DOE so far, and chances are it will win more.

Keep track of NuScale Power stock

Several analysts also turned bullish on NuScale Power stock in September, further fueling its rally. Analysts at CLSA, for example, initiated coverage on the nuclear power stock with an Outperform rating and a price target of $11 per share. CLSA considers the support of the parent company Fluorinecost-sharing awards from the DOE and an option to issue stock to raise funds whenever needed should take care of NuScale Power’s financial needs until it becomes profitable, hopefully by 2028.

A Craig-Hallum analyst also initiated coverage and assigned a $16 price target per share on NuScale Power stock, citing the company’s growth potential in the SMR market.

NuScale Power will announce its third quarter numbers on November 7. While its numbers aren’t worth looking at just yet, the company’s progress toward commercialization and its cash balance are just a few things you’ll want to keep an eye on. If NuScale Power’s plans are promising, its stock could continue to hit new highs as growth-hungry investors bet more money on this high-risk, potentially high-reward stock.