Washington Is Pouring Billions Into Nuclear Energy. Does That Make NuScale Power a Buy?

Core Insights - The United States aims to significantly expand its nuclear energy capabilities, targeting a quadrupling of nuclear energy capacity by 2050 and plans to have 10 large reactors under construction by 2030 [1][2] - The U.S. government is increasing funding for nuclear energy, with $3.1 billion allocated for small modular reactors (SMRs) and advanced reactor demonstration programs [1][5] - NuScale Power is positioned as a key player in the SMR market, being the only company with an NRC standard design approval, which enhances its competitiveness for federal funding [6][7] Funding and Government Support - The U.S. government allocated $800 million last year for Generation III+ light water SMRs, with funding awarded to first movers like Tennessee Valley Authority (TVA) and Holtec, although NuScale was not selected [3] - TVA is advancing with GE Vernova's Hitachi BWRX-300 and has signed an agreement to develop up to six gigawatts of nuclear power using NuScale's power modules [4] Market Position and Opportunities - The substantial government investment indicates a bullish outlook for the nuclear industry, which is expected to benefit SMR companies like NuScale Power [7] - The advanced reactor demonstration program aims to transition reactors from theoretical concepts to operational performance, which includes various reactor types such as SMRs [5]