Is NuScale Power Stock a Buy Now?
Artificial intelligence (AI) and electrification are driving the world to need more energy. One form of electric power generation that is coming back into vogue is nuclear power. Large companies are making commitments to buy electricity from nuclear power plants, while utilities are extending the contracts for existing facilities and planning to bring new power sources to life in the next few years.
One stock that has benefited from this changing nuclear energy sentiment is NuScale Power Corporation (NYSE: SMR). The start-up is working on small modular reactor technology to license to third parties, hopefully to democratize the technology. Shares of the stock are up 250% in the last year, beating the broad market averages. But is it a buy right now?
Small modular reactors are almost self-explanatory. Unlike the traditional large nuclear power plants, these are smaller systems that can (theoretically) be made more efficiently by combining a bunch together or using one system for a small energy need. Using similar technology to traditional power plants, NuScale Power wants to help utilities improve on the capital intensity a nuclear power plant takes to build, which can be a daunting proposition.
Source Fool.com
