Is NuScale Power a buy after recent volatility?

Core Insights - NuScale Power's stock has experienced significant volatility, trading between approximately $7 and $51 over the past year, with a notable 58% drawdown despite a 400% increase overall [1][2][8] Company Overview - NuScale Power primarily generates revenue through consulting services for Fluor, a major construction company, which is also a significant investor in NuScale [3] - The consulting work is related to a project with RoPower, a Romanian power company, which is expected to be the first customer for NuScale's small modular nuclear reactors (SMRs) [3] Technology and Market Opportunity - The company aims to manufacture SMRs, which are designed to scale down existing nuclear power technology, making it more cost-effective and easier to build in a factory setting [4][5] - SMRs are expected to incorporate modern safety features and can be deployed closer to population centers, potentially transforming the nuclear power landscape [5] - There is a projected 55% increase in electricity demand in the U.S. from 2020 to 2040, compared to only a 9% increase from 2000 to 2020, indicating a significant market opportunity for SMRs [6] Investment Considerations - The volatility of NuScale's stock may be attributed to market sentiment and the potential for the stock price to outpace the company's actual performance [8] - Currently, NuScale is not profitable and is in the process of building its business, with RoPower not yet officially committed as a customer [9] - The successful transition from zero production to supplying RoPower with six SMRs is critical, and failure to meet this milestone could lead to a significant drop in stock value [10] - Securing RoPower as a customer could pave the way for additional clients, but uncertainties remain regarding the company's future performance [11] Investor Profile - NuScale Power is likely to attract only a small number of aggressive investors who are optimistic about the company's potential and willing to invest for the long term [12]