NuScale Power’s stock surged 16.45% recently as discussions around deploying nuclear reactors in space gain momentum. The U.S. government aims to have these reactors operational in orbit by 2028 and on the moon by 2030, positioning NuScale favorably due to its approved small modular reactor (SMR) technology. With over 700 patents and a potentially quicker development timeline compared to traditional reactors, NuScale appears to be a frontrunner for future contracts in this emerging sector.
However, while the long-term outlook for nuclear energy in space seems promising, the current market for SMRs remains limited. NuScale has yet to build any commercial reactors, and its stock has dropped 70% over the past six months, reflecting investor caution. The global SMR market is projected to grow significantly, but tangible revenue streams are still years away.
For investors, NuScale presents a speculative opportunity. Given the potential upside in space energy and nuclear power’s increasing role in data centers, it may be worth monitoring as the market develops, but caution is warranted due to its current unprofitability and operational challenges.
Source: fool.com