Why Did NuScale Stock Drop 14.7% This Week?

Core Viewpoint - NuScale Power's shares declined by 14.7% this week, contrasting with gains in the S&P 500 and Nasdaq-100, raising concerns about the anticipated energy demand from AI data centers despite a 110% increase in stock value this year [1]. Group 1: Market Performance - NuScale Power's stock fell 14.7% while the S&P 500 and Nasdaq-100 rose by 1.9% and 2.2% respectively [1]. - The stock has seen a significant increase of 110% year-to-date, driven by the rising interest in nuclear energy stocks due to AI's energy requirements [1]. Group 2: Investor Sentiment - Recent news, including a Chinese research paper suggesting AI models can operate more efficiently, has led investors to reassess the expected energy consumption from AI [2]. - Comments from a CEO of a gas and wind turbine producer hinted at potential growth tapering, further influencing investor sentiment [2]. Group 3: Regulatory and Financial Status - NuScale is the only small modular reactor company to have received full regulatory approval from the Nuclear Regulatory Commission, unlike its competitor Oklo [4]. - Despite the promising technology, NuScale faces challenges with low revenue and high ongoing costs, leading to downgrades from analysts at two investment banks to "sell" and "underperform" [4]. Group 4: Investment Considerations - The Motley Fool Stock Advisor has not included NuScale Power in its list of top investment recommendations, suggesting that there are better opportunities available [5]. - Historical examples of successful stock recommendations highlight the potential for significant returns, contrasting with the current sentiment around NuScale [6].