Why NuScale Power Stock Popped 41% in September And Is Up 290% in 2024

NuScale Power's (NYSE: SMR) stock has been on a bit of a roller coaster in 2024, hitting an all-time high of $16.91 in mid-July but then falling somewhat going into the fall. NuScale's stock rebounded dramatically in September, surging 40.7% in the month, according to data provided by S&P Global Market Intelligence. The nuclear energy stock is now up more than 284% in 2024, as of this writing.

NuScale Power is a young start-up developing small and scalable modular nuclear power plants based on small modular reactor (SMR) technology to provide reliable and cost-effective electricity. With the world increasingly looking at alternatives to fossil fuels to lower carbon emissions and improve energy security, nuclear energy-based SMR technology looks promising. Recent industry developments and investor sentiment are driving NuScale Power stock to new heights.

The nuclear energy industry is buzzing

For clean energy advocates, nuclear power is back in the spotlight. In September, 14 large global banks and financial institutions voiced their support for nuclear energy at an event in New York City. The banks are backing the Declaration to Triple Nuclear Energy endorsed by more than 20 countries at the COP28 summit last year. The declaration sets the goal of tripling global nuclear energy capacity by 2050.

Lately, at least two technology giants also voiced their support for nuclear power. Microsoft is banking heavily on it to meet its clean energy goals and signed a 20-year power purchase contract with utility giant Constellation Energy in September. Following the deal, the utility plans to restart a nuclear power plant shuttered since 1979 at Three Mile Island, Pennsylvania.

Last month, Oracle CEO Larry Ellison revealed ambitious plans to use nuclear energy for its artificial intelligence (AI) data centers through SMRs.

Other notable recent developments in the nuclear energy industry are the Department of Energy's (DOE's) notice of intent to dedicate $900 million to funding SMR technology and the U.S. export-import bank EXIM's latest pledge to lend $98 million for an SMR project in Romania.

With small modular nuclear reactors evidently grabbing eyeballs, it's no surprise that NuScale Power stock skyrocketed in September and has nearly quadrupled this year. NuScale Power's SMR is the first with a design certified by the U.S. Nuclear Regulatory Commission. It has also won four cost-share awards worth nearly $600 million from the DOE so far, and there's a chance it could win more.

Keep watching NuScale Power stock

Several analysts also turned bullish about NuScale Power stock in September, further fueling its rally. Analysts at CLSA, for instance, initiated coverage on the nuclear energy stock with an outperform rating and a price target of $11 per share. CLSA believes the backing of parent company Fluor, cost-share awards from the DOE, and an option to issue shares to raise funds whenever required should take care of NuScale Power's financial needs until it turns profitable, hopefully by 2028.

A Craig-Hallum analyst also initiated coverage and assigned a price target of $16 per share for NuScale Power stock, citing the company's growth potential in the SMR market.

NuScale Power will announce its third-quarter numbers on Nov. 7. While its numbers aren't worth a dig yet, the company's progress toward commercialization and its cash balance are just some of the things you'll want to watch out for. If NuScale Power's plans hold promise, its stock could continue to make new highs as growth-hungry investors bet more money on this high-risk, potentially high-reward stock.

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Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Constellation Energy, Microsoft, and Oracle. The Motley Fool recommends NuScale Power and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.