How Buying NuScale Power Stock Today Could 10X Your Net Worth

It's not often that a global $10 trillion opportunity comes along. But that's exactly what analysts and Bank of America believe is happening for nuclear energy right now.

And when you look even closer, there's reason to believe nuclear stocks like NuScale Power (NYSE: SMR) will be major beneficiaries -- so much so that your portfolio could rise 1,000% in value from this opportunity alone. But before you buy shares, it's important to understand the details.

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Artificial intelligence is rapidly transforming the energy landscape

In 1950, electricity generation in the U.S. totaled around 400MWh. In 2007, generation reached a peak of 4,175MWh. Between 1950 and 2007, the trajectory was almost a perfectly straight upward arrow. But then something strange happened. Between 2007 and 2018, total electricity generation plateaued. For more than a decade, demand growth totaled roughly 0% -- a huge departure from the previous 60 years.

Slowing population growth and a greater emphasis on energy efficiency were largely to credit. Flatlining electricity generation, therefore, matched flatlining demand. That flatlining, however, is now a thing of the past. From 2024 to 2030, electricity demand in the U.S. is expected to grow by 4% annually. Leading the charge is the artificial intelligence (AI) sector, which is expected to grow from 4.3% of the nation's total electric demand to 11.7%.

Previously flatlined electricity demand has largely left electric utilities flatfooted. Across the country, there is now a race to get new, low-carbon energy sources online to power the AI revolution. Companies like SpaceX are even exploring building AI data centers in space, partly to take advantage of limitless solar energy. Those efforts are still largely theoretical, however. Nuclear stocks like NuScale Power may have a much clearer path to adoption. And there's already plenty of market proof points.

NuScale Power is in the right place at the right time

NuScale Power is developing what are called small modular reactors, or SMRs. This is an approach to nuclear that, at least on paper, can lower initial building costs, shorten deployment times, and allow for future modules to be built. In short, SMRs are mini nuclear power plants with certain advantages, chief of which is the ability to deploy quickly and at a lower initial expense compared to larger conventional nuclear systems.

NuScale Power isn't alone in this pursuit. Other diversified industrial conglomerates are also pursuing SMRs as well as other pure-play SMR companies like Oklo Inc., which has already secured several large data center contracts.

As mentioned, Bank of America believes the nuclear renaissance -- a renaissance largely built to serve the growing energy needs of the AI sector -- will be worth up to $10 trillion globally. With a market cap of just $3.5 billion, the upside potential for NuScale Power is clear.

But note that Bank of America sees this opportunity playing out over a period of 30 to 35 years, with SMRs sharing the potential spending with other forms of nuclear, including conventional nuclear plants. So while stocks like NuScale Power and Oklo are true "millionaire-maker" stocks, know that the holding period will be incredibly long, with a huge amount of execution uncertainty along the way.

Bank of America is an advertising partner of Motley Fool Money. Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool recommends NuScale Power. The Motley Fool has a disclosure policy.