NuScale Power (SMR 2.75%) stock has been on a tear over the last few years, capturing the imagination of investors seeking next-generation nuclear technology. Bulls see a future where the company's small modular reactors (SMRs) fill critical gaps in the grid, like powering energy-hungry artificial intelligence (AI) data centers.
SMRs have several major advantages over traditional reactors, namely, they're scalable, much cheaper to construct, and safer. If NuScale perfects the technology, it could mean serious growth for the stock.
NYSE: SMR
Key Data Points
A lot has changed in two years
If you had been prudent enough to invest $5,000 in NuScale stock in January of 2024, you would have seen an incredible 643.3% return. That $5,000 would now be worth $37,160. You can see the massive growth in the chart below.
NuScale is a risky investment
Image source: Getty Images.
There is undoubtedly an enormous opportunity here, but so are the risks. There is a long and exceptionally difficult road ahead for NuScale, and even if the company perfects its technology and delivers on its promise, significant share dilution is likely along the way. Nuclear power is an expensive business.
For most investors, this is too risky. If you have a particularly high risk tolerance, however, NuScale is a solid, highly speculative pick.
