NuScale Power Trades Near $8. Here's What Has to Happen for It to See $20 Again.

NuScale Power's stock has seen significant fluctuations over the past three years, with shares trading between $2 and $53. Currently, the stock is trading just under $8, marking its most substantial decline of around 85%. This decline has been primarily driven by investors' overexposure to nuclear power stocks and a subsequent shift in focus.

The company's technology, small modular nuclear reactors (SMRs), holds the potential to revolutionize the nuclear industry, offering lower costs, enhanced safety, and ease of deployment near demand areas compared to traditional large-scale reactors. However, NuScale Power has yet to construct its first commercial SMR and has not secured any contracts.

The company is actively pursuing partnerships, including a project with Romanian power company RoPower and potential collaboration with ENTRA1 Energy and the Tennessee Valley Authority. While these partnerships represent significant progress, a signed contract, marking the next milestone for NuScale Power, remains elusive. Investors should remain cautious, considering the high-risk nature of the company, which is anticipated to persist for an extended period.