Artificial intelligence (AI) may be the most advanced technology humankind has ever made. The irony, though? Most of it runs on an aging, highly strained electric grid that was built in the 1960s, a few decades before personal computers were even an everyday household item.
Clearly, if AI is going to advance further, a new energy solution is needed to supply the power. Oregon-based NuScale Power (SMR 2.63%) may just have the answer.
NYSE: SMR
Key Data Points
NuScale is a nuclear energy company that's developing small modular reactors (SMRs). These reactors are compact and can be deployed in clusters. They can supply on-site power to data center operators, military camps, companies, towns, and others that need more than what the grid can provide.
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NuScale is currently the only U.S. company with an SMR design that's been approved by the Nuclear Regulatory Commission (NRC). While the company hasn't made a first sale yet, it is finally moving forward with a potential first SMR project in Romania. It is also in talks with the Tennessee Valley Authority to deploy up to 6 gigawatts of SMR capacity across seven states.
The company is nowhere near profitable. It's burning cash and operating at a net loss. Without a firm first sale, it's unclear when revenue growth will really take off.
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However, the opportunity for its technology could be immense. Research from Bank of America (BAC 3.36%) estimates that nuclear energy represents a $10 trillion market opportunity right now, with SMR technology at the forefront of the renaissance.
However you slice it, nuclear is turning into a critical component for AI data centers. NuScale Power may be the company most well-positioned to supply it. For investors looking for exposure to AI energy, NuScale stock looks like one of the best stocks to hold for the next decade.
