Why Is NuScale Power Stock Surging After a Difficult December?

Core Viewpoint - NuScale Power experienced a significant decline in its stock price at the end of 2025 but has shown a remarkable recovery in January 2026, driven by renewed interest in nuclear energy and strategic industry developments [1][5]. Group 1: Stock Performance - NuScale Power's shares fell 61% in the last quarter of 2025, with a notable 29.2% drop in December [1]. - The stock plummeted 55% in November due to a substantial third-quarter loss, stock issues, and multiple analyst downgrades [3]. - In January 2026, the stock rebounded with a 41% increase, reflecting a positive shift in market sentiment towards nuclear energy [1][5]. Group 2: Shareholder Actions and Market Reactions - Shareholders approved a significant increase in authorized shares from 332 million to 662 million, allowing the company to raise capital through new share issuance [3]. - Fluor, NuScale's largest shareholder, announced plans to divest its entire stake by the end of Q2 2026, which raised concerns about potential share dilution among investors [4]. Group 3: Industry Developments - Meta Platforms announced nuclear energy deals for up to 6.6 gigawatts of power, indicating a growing interest in nuclear energy, although NuScale was not part of these deals [6][7]. - The scalability of NuScale's VOYGR small modular reactors (SMRs) positions them as a viable option for on-site power generation, even in challenging locations [8]. Group 4: Analyst Ratings - Bank of America analyst upgraded NuScale Power's stock rating from "underperform" to "neutral," while adjusting the price target to $28 per share, which still suggests a nearly 40% upside potential [8].