NuScale Power Stock Up 96% Year to Date: Is SMR Tech the Catalyst?

NuScale Power SMR shares have surged 96.4% in the year-to-date period, outperforming the Zacks Computer & Technology sector’s return of 5.7% and the Zacks Electronics- Power Generation industry’s rise of 96.1%.The outperformance can be attributed to the advancements in Small Modular Reactor (SMR) technology. The company’s expanding partner base, which includes tech giants and financial institutions, positions SMR as a key player in the future of sustainable, carbon-free energy.The company is also benefiting from the high demand for electricity and clean energy, as well as the increasing need for AI-powered data centers, which serve as a major driving factor.SMR Stock PerformanceImage Source: Zacks Investment ResearchSMR Benefits From Sustainable Water SolutionsNuScale Power is pioneering advanced solutions to address global energy and water challenges through its advanced small modular reactor technology.Building on this momentum, in June, NuScale Power announced research programs focused on integrating clean water production and hydrogen generation using its advanced SMR technology. A single NuScale Power Module can produce 150 million gallons of clean water daily, while 12 modules can power 400,000 homes and supply desalinated water to 2.3 million people. NuScale Power’s novel hydro-thermal hydrogen production method utilizes brine waste, eliminating the need for electrolysis and reducing both carbon emissions and resource usage.SMR Benefits From Growing Data Center NeedsNuScale Power is gaining strong momentum across various sectors, particularly as energy demand continues to rise. The increasing energy demand, driven by sectors like data centers, which require continuous, reliable, and carbon-free energy, has been a major growth driver.Data centers are expected to triple their energy use over the next three years, accounting for 12% of U.S. electricity consumption by 2028. This growth trend presents a significant opportunity for NuScale Power, as its SMR technology offers consistent, carbon-free energy that can meet the increasing demands of hyperscale data centers.SMR Benefits From Tech Giants’ Commitment to Nuclear EnergyNuScale Power continues to attract strong interest from major technology companies and infrastructure capital. Companies like Meta Platforms, Microsoft MSFT, Alphabet and Oracle ORCL have made substantial commitments to using nuclear energy, including SMR technology, to meet their sustainability goals, which positively impacts NuScale Power’s market positioning.Microsoft’s commitment to nuclear energy has further validated the demand for SMR technology in powering data centers and heavy industries. Microsoft is also planning an $80 billion investment in fiscal 2025 to build AI-enabled data centers, contributing to the projected six-fold increase in U.S. power demand over the next 20 years.Companies like Google and Oracle are also showing interest in using SMR technology for large-scale data centers, reinforcing the growing trend toward nuclear solutions for energy-intensive tech operations. As Alphabet, META Platforms, Microsoft, and Oracle align their energy strategies with sustainable nuclear options, the demand for SMR technology continues to gain momentum, positioning NuScale Power at the forefront of this emerging energy market.SMR Suffers From Stiff CompetitionDespite NuScale Power’s advancements in SMR technology and expanding partner base, the company is facing stiff competition in the SMR sector of the nuclear energy industry from companies like Oklo OKLO and BWX Technologies.In May 2025, OKLO signed a memorandum of understanding with Korea Hydro & Nuclear Power to collaborate on the development and global deployment of its advanced nuclear technology. This partnership aims to jointly advance the design and verification of Oklo’s Aurora powerhouse and cooperate on early project development efforts.SMR Earnings Estimate Shows Upward TrendFor 2025, the Zacks Consensus Estimate for loss is pegged at 42 cents per share, which has remained unchanged over the past 30 days. SMR reported earnings of 42 cents per share in the year-ago quarter.NuScale Power Corporation Price and Consensus NuScale Power Corporation price-consensus-chart | NuScale Power Corporation QuoteSMR Stock is OvervaluedNuScale Power shares are currently overvalued, as suggested by its Value Score of F.In terms of the forward 12-month price/sales (P/S), SMR is trading at 95.22X, significantly higher than its median of 33.33X and the Zacks Computer and Technology sector’s 6.51X.Price/Sales (F12M)Image Source: Zacks Investment ResearchConclusion: Hold SMR Stock for NowNuScale Power’s advancements in SMR technology, along with its growing partnerships with tech giants and financial institutions, position it as a key player in the future of sustainable, carbon-free energy.However, despite these innovations and collaborations, the company faces challenges in the highly competitive energy market, which includes the growing presence of renewable energy sources and regulatory hurdles. These factors could affect NuScale Power’s market positioning, despite its technological edge. SMR’s stretched valuation is also a concern.NuScale Power currently has a Zacks Rank #3 (Hold), which implies that investors should wait for a more favorable entry point to accumulate the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT): Free Stock Analysis Report Oracle Corporation (ORCL): Free Stock Analysis Report NuScale Power Corporation (SMR): Free Stock Analysis Report Oklo Inc. (OKLO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks