Shares of NuScale Power (NYSE: SMR) surged over 25% due to a new commitment from Meta Platforms to fund 6.6 gigawatts of electric power. Although NuScale was not part of the deal, the stock has risen 100% in the last five years. However, the company has no revenue, profit, or contracts, making it a risky investment.

Meta Platforms announced a historic nuclear power commitment, benefiting Vistra Corp, Oklo, and TerraPower. This partnership will supply power to AI data centers in Ohio. Despite NuScale Power not being involved, the announcement boosted the nuclear power sector. NuScale, a developer of small modular reactors, did not secure any contracts despite having a certified design.

Investors should be cautious of NuScale Power, as the company lacks revenue, profit, and contracts. The stock’s recent increase is not reflective of its business, which has a market cap of $6 billion. It may take years for the company to secure a contract and generate a profit. Stay away from this stock for now.

Read more at Yahoo Finance: Why NuScale Power Stock Was Moving Higher This Week