SMR Benefits From Expanding Partner Base: A Sign for More Upside?

Core Insights - NuScale Power (SMR) is emerging as a significant player in sustainable, carbon-free energy due to an expanding partner base that includes major technology companies and financial institutions [1] - Major tech companies like Meta Platforms, Microsoft, Alphabet, and Oracle are committing to nuclear energy, particularly SMR technology, to achieve their sustainability goals, enhancing NuScale Power's market position [2][4] - Microsoft plans an $80 billion investment in fiscal 2025 for AI-enabled data centers, which is expected to drive a six-fold increase in U.S. power demand over the next 20 years, validating the demand for SMR technology [3][11] Company Developments - NuScale Power has made significant progress in the manufacturing and commercialization of its SMR technology, collaborating with key partners such as Doosan Interability and ENTRA1 Energy [5] - SMR faces competition from companies like Oklo and Constellation Energy, which are also advancing their nuclear energy solutions [6][11] Competitive Landscape - Oklo has signed a memorandum of understanding with Korea Hydro & Nuclear Power to develop and deploy its advanced nuclear technology, strengthening its market position [7] - Constellation Energy has secured a 20-year power purchase agreement with Meta to supply 1,121 MW of emissions-free nuclear energy, ensuring the continued operation of the Clinton Clean Energy Center [8] Stock Performance and Valuation - SMR shares have increased by 157.1% year-to-date, outperforming the Zacks Computer & Technology sector's 8.4% and the Zacks Electronics-Power Generation industry's 132.6% [9][11] - SMR is trading at a premium with a forward 12-month Price/Sales ratio of 119.52X compared to the sector's 6.64X, indicating a high valuation [12] - The Zacks Consensus Estimate for SMR's loss in 2025 is 45 cents per share, which has widened by 3 cents over the past month [14]