NuScale Power stock has potential for growth with SMRs, but caution is needed.

From Nasdaq: 2024-12-27 05:45:00

NuScale Power (NYSE: SMR) has seen its stock price fluctuate since going public in May 2022. With small modular reactors (SMRs) as its main focus, the company has faced both bullish and bearish sentiments regarding its potential for growth and scalability.

With an enterprise value of $2 billion, NuScale’s stock currently trades at a high multiple of its projected revenue for 2024. The company’s SMRs offer a more flexible and cost-effective approach to nuclear energy, but it will need to scale up its business to reach profitability.

Despite facing setbacks and accusations from short sellers, NuScale remains optimistic about its long-term growth potential. The global market for SMRs is expected to grow significantly, presenting an opportunity for NuScale to increase its revenue and valuation over the next decade.

To support its clean energy initiatives, NuScale has secured funding from the U.S. Department of Energy and entered into partnerships with companies like Doosan Enerbility. These collaborations could help NuScale accelerate its business expansion and gain a competitive edge in the market.

While NuScale’s stock may have long-term growth potential, investors should exercise caution due to the high valuation and uncertainties surrounding the company’s future. Gradually investing in NuScale’s stock could be a prudent approach to capitalize on any potential upside while managing risks.



Read more at Nasdaq: Where Will NuScale Power Stock Be in 10 Years?