If You'd Invested $10,000 in NuScale Power Stock 1 Year Ago, Here's How Much You'd Have Today

NuScale Power (SMR 0.77%) went public in May 2022 through a merger with a special purpose acquisition company (SPAC). It was an unknown stock, though, and even tumbled 69% in 2023. This year, NuScale Power has emerged as one of the top-performing stocks, thanks to a 255% rally in the first half of 2024.

If you'd invested $10,000 in NuScale Power stock one year ago, your money would be worth nearly $14,700 today. At the stock's all-time high price on July 15, your investment would have been worth almost $21,500. In short, your money in NuScale stock would have more than doubled in less than a year!

Why NuScale Power stock surged

NuScale stock's rally has little to do with numbers and more about an upbeat sentiment for nuclear energy.

The U.S. government wants to boost the nuclear energy industry as nuclear power is a key part of its climate goals. It recently initiated a ban on the import of nuclear fuel, uranium from Russia, and announced plans to invest $2.7 billion to spur domestic uranium production. The government will also fund small modular reactor (SMR) technology for up to $900 million. SMRs can be built in locations where large nuclear power plants aren't feasible.

NuScale, backed by Fluor, is developing SMRs, which explains the sudden investor interest in the stock. NuScale's SMR is also the first with a design certified by the U.S. Nuclear Regulatory Commission.

The problem with NuScale Power stock

Investors expect NuScale to benefit under the Biden administration. While that may be possible, the company is still developing its core technology, NuScale power modules (NPM), and is years away from commercialization.

When NuScale announced plans to go public, it expected to turn cash-flow positive by 2024. In its latest quarterly report, though, the company said it expects its losses and "negative operating cash flow to grow" until it commercializes NPM.

That's the thing about young, growth stocks: They may be alluring but are often nothing but speculative bets until they prove the viability of their products and services.