Nuclear power is gaining traction as a potential solution to the world’s energy shortage driven by AI data centers. NuScale Power, one of the few companies developing small modular reactors (SMRs), is making headlines with its promising prospects.
The World Nuclear Association reports that more new nuclear power plants have been commissioned than decommissioned over the past 20 years. The International Atomic Energy Agency (IAEA) predicts that by 2050, up to two and a half times more nuclear power could be generated than currently consumed.
SMRs are becoming increasingly marketable due to their safety, cost-effectiveness, and ability to provide on-site power for specific applications such as desalination plants, steel smelting facilities, and hydrogen production. The IAEA believes that SMRs could account for around one-fourth of nuclear power production capacity by 2043.
NuScale Power’s small modular reactor design is the only one currently approved by the US Nuclear Regulatory Commission. The company has secured buyers, including Romania’s Nuclearelectrica and RoPower Nuclear, which plan to purchase six NuScale modules worth a few billion dollars each.
However, concerns remain about NuScale’s prospects. The company hasn’t sold any functioning SMRs yet, and its technology is still unproven. The Utah Associated Municipal Power Systems’ failed effort to develop a nuclear power facility around NuScale’s tech raises questions about the viability of small modular reactors.
For investors, NuScale Power presents a high-risk, high-reward opportunity. While a $10,000 investment could potentially make someone a millionaire, the odds are against it. The company’s stock requires constant monitoring, and its prospects are not nearly as strong as those of other investments.
Until more concrete evidence emerges, investors should exercise caution when considering NuScale Power or any other small-cap nuclear energy company.
Source: https://www.fool.com/investing/2024/12/23/could-investing-10000-in-nuscale-power-make-you-a