Can Rising Data Center Power Demand Drive SMR's Long-Term Growth?

Core Insights - NuScale Power is experiencing increased demand due to the rise of AI-driven data centers, which require reliable and continuous power supply [1][5] - The company believes its small modular reactors (SMRs) can meet this demand effectively, particularly in behind-the-meter power solutions [2][11] - NuScale Power's commercial plans are supported by agreements with ENTRA1 and the Tennessee Valley Authority (TVA) to deploy up to 6 gigawatts (GW) of nuclear capacity [3][11] - The U.S.-Japan framework aims to mobilize up to $550 billion in investments to enhance energy infrastructure, with NuScale Power and ENTRA1 being key players in this initiative [4][11] Demand and Market Position - The demand for power from data centers remains robust, and NuScale Power's future growth hinges on securing binding power purchase agreements and advancing project timelines [5][11] - The company faces significant competition in the nuclear energy sector from firms like Oklo and Constellation Energy, which are also pursuing clean energy solutions for data centers [6][7][8] Financial Performance - NuScale Power's stock has declined by 55.6% over the past six months, compared to a 52.4% decline in the Zacks Electronics - Power Generation industry [9] - The company's shares are currently trading at a trailing 12-month Price/Book ratio of 13.86, which is higher than the industry average of 13.21 [13] - The Zacks Consensus Estimate for 2026 indicates a projected loss of 62 cents per share, an improvement from a previous estimate of a 67 cents loss [16][17]