Why NuScale Power Stock Ripped 50.5% Higher in May

Company Overview - NuScale Power is a young company founded in 2007 and went public in 2022 [6] - The company has developed a small modular reactor (SMR) nuclear technology that can generate carbon-free nuclear energy for various end uses, including electricity generation, hydrogen production, desalination, and powering data centers [3] - NuScale Power is still in the research and development stage and has yet to commercialize its technology, but it claims to be close to commercial deployment and is focused on advancing revenue-generating projects while securing new orders [5] - The company does not have any debt, which is notable for a start-up [5] Financial Performance - NuScale Power reported a 75% drop in its year-over-year revenue due to the loss of a contract and a 35% rise in net loss for its first quarter last month [2] - The stock was down 69% through the end of 2023 before dramatically rebounding this year, with a 50.5% jump in May alone [6] - The stock has rallied 162% so far this year, as of this writing [10] Industry and Market Trends - Investors expect NuScale Power to benefit from the U S government's moves to boost the local nuclear industry, including the Prohibiting Russian Uranium Imports Act signed into law in mid-May to ban the import of uranium from Russia [2][7] - The government has called nuclear energy "the way of the future" as it strives to build a low-carbon economy, leading to increased investor enthusiasm for nuclear energy stocks [4][7] - The government plans to pump $2 7 billion to ramp up domestic nuclear fuel production [7] Technology and Contracts - NuScale Power's SMR technology is the first and only such technology to have its design certified by the U S Nuclear Regulatory Commission [8] - The company recently won a contract from Standard Power to develop two SMR-powered facilities in Ohio and Pennsylvania that will deploy 24 NuScale Power modules and generate roughly 2 gigawatts of clean energy [8] Revenue and Monetization - NuScale Power has yet to sell and monetize its first product, making it a speculative bet for investors [10] - The company currently generates little revenue from providing engineering and licensing services to potential customers [10]