Hardly anyone knew about NuScale Power (SMR 1.69%) until last year. The company went public in 2022 via a SPAC merger. Between its day of listing on May 3, 2022, and Dec. 31, 2023, shares of NuScale Power had plunged 69%. But if you had waited a few months, watched the stock reverse course, and then invested $1,000, in NuScale Power stock this time one year ago, your money would have more than tripled by now to nearly $3,100.

NuScale Power hasn't even commercialized its first product, so what is the hype all about? It's about nuclear energy, and the potential for small modular reactors (SMRs) to change the dynamics of the industry.

A happy person throwing paper money in the air.

Image source: Getty Images.

SMRs are gaining attention as a viable technology to meet the rising global demand for cleaner energy. Unlike traditional nuclear reactors, SMRs are smaller, can be built in factories, and are faster to produce and more affordable. Most importantly, SMRs are modular and scalable and can be installed in compact and remote areas, and also be connected to grids to generate uninterrupted and stable power.

NuScale Power's SMRs can generate electricity around the clock. Its SMR technology is also the first to win a design approval from the U.S. Nuclear Regulatory Commission.

The big triggers for NuScale Power stock

While President Donald Trump's policies and executive orders supporting the U.S. nuclear energy sector have been the primary driver behind Fluor-backed NuScale Power stock's rally, a recent landmark deal added fuel to the fire.

NuScale Power has an exclusive commercialization partnership with ENTRA1 Energy, whereby ENTRA1 will develop and operate energy plants equipped with NuScale's SMRs. In other words, NuScale will commercialize its technology through ENTRA1 Energy.

So when ENTRA1 Energy recently signed an agreement to deploy up to 6 gigawatts (GW) of nuclear power capacity to the Tennessee Valley Authority (TVA) across seven states, it meant there was a deal to deploy up to 6 GW of NuScale's SMRs. That's a huge milestone, and NuScale stock is drawing more attention than ever before.

Even if NuScale takes years to generate its first SMR revenue, the stock could remain in the spotlight and it's worth a look.