Why NuScale Power Stock Was a Winner Today

Some exciting news from a peer company breathed life into shares of NuScale Power (NYSE: SMR) on the first business day of the week. Investors piled into NuScale stock, sending it more than 6% higher in price across the trading session. By comparison, the benchmark S&P 500 index only managed to rise 0.8% that day.

Google gets into the nuclear game with Kairos Power

Said news came from privately held Kairos Power, which reported Monday that it has signed a development agreement with Alphabet's Google. The famous tech company and the nuclear power solutions provider are teaming up to establish a set of nuclear energy projects totaling 500 megawatts of power. These should be deployed by 2035, according to Kairos.

While NuScale is not the beneficiary of this thrilling news, it's smack dab in the company's wheelhouse. It develops small modular reactors (SMRs; hence its ticker symbol) that can be manufactured in pieces, then assembled on-site for a client. For resource- and time-constrained clients, this could be quite the attractive solution.

The Google/Kairos news comes on the heels of similar nuclear development deals reached by other tech heavyweights, namely Microsoft and Oracle.

More energy needed, please

Energy demand is climbing ever higher these days, especially from the power-thirsty tech sector, and with it, the need for generation solutions. NuScale Power is a fine play on this dynamic, as it offers solutions that can be cost-effective and resource-light. We shouldn't be surprised if and when the company signs a development deal (or several) of its own with familiar names in the tech industry.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Amazon: if you invested $1,000 when we doubled down in 2010, you’d have $21,266!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $43,047!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $389,794!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

See 3 “Double Down” stocks »

*Stock Advisor returns as of October 14, 2024

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, 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.