Why NuScale Power Stock Sank 6% Today

Group 1 - NuScale Power's shares fell by 6% while the S&P 500 and Nasdaq Composite rose by 0.9% and 0.6% respectively [1] - UBS analyst Jon Windham maintained a "Neutral" rating for NuScale but cut the price target from $38 to $20, indicating a significant reduction in expected upside [2] - Concerns over potential cash flow issues from a major project were cited as reasons for the price target reduction [2] Group 2 - The energy demands of artificial intelligence (AI) were initially expected to drive up energy needs, benefiting nuclear companies like NuScale [3] - Recent news revealed that Meta Platforms is negotiating to purchase energy-efficient chips from Alphabet, which may indicate a shift towards more energy-efficient models, potentially reducing demand for NuScale's offerings [4][5] - Investor sentiment appears to be affected by the perception that the industry may be moving towards energy-efficient solutions, leading to concerns about NuScale's future [5] Group 3 - The UBS analyst's note suggests that while NuScale may have potential, the current valuation is not justified due to numerous uncertainties [5] - Other investment recommendations have emerged, with analysts identifying ten stocks that are considered better investment opportunities than NuScale [6][7]