Shares of NuScale Power(NYSE: SMR) skyrocketed on Wednesday, surging 14.8% as of 1:20 p.m. ET. to a 52-week high of $26.67 a share. With today's rally, the nuclear energy stock is now up a whopping 38.6% so far this month after clocking a massive 65% gain in October.
Investors believe the latest announcement from the White House will propel NuScale Power to new heights.
Nuclear energy is back in focus
The White House announced a roadmap yesterday to boost the nuclear energy industry, with plans to "at least" triple nuclear energy production in the U.S. by 2050 by deploying 200 gigawatts of new capacity. The present government believes expanding nuclear energy capacity will create many jobs, strengthen domestic supply, enhance energy reliability, and support the government's target of achieving a net-zero emissions economy by 2050.
Importantly, plans include supporting the development of small modular reactors (SMRs) -- something NuScale Power specializes in. NuScale Power is developing advanced scalable SMRs that can provide reliable, low-cost, carbon-free electricity.
The White House plan even mentioned NuScale Power while highlighting how the U.S. Nuclear Regulatory Commission (NRC) is reforming its licensing and permitting processes for nuclear reactor deployment and had gained significant insight during licensing reviews of companies like NuScale Power. Notably, NuScale Power's SMR design is the first to be certified by the NRC.
Should you buy NuScale Power stock?
The Department of Energy (DOE) expects to deploy $900 million toward developing SMRs. NuScale Power could benefit as it has previously won some cost-share awards from the DOE.
Importantly, although clean energy stocks slumped yesterday on fears of President-elect Donald Trump repealing the Inflation Reduction Act, which committed billions of dollars to clean energy, investors expect President Joe Biden's latest plans to survive under Trump given the bipartisan support for nuclear energy.
SMR has solid potential, and NuScale Power has ample cash for now and recently reported a lower loss for its third quarter. Yet, NuScale is still years away from commercializing its "VYOGR" SMR plants. With the stock already commanding a market capitalization of nearly $2.6 billion as of this writing, you should know the risks of investing and weigh your risk appetite before betting on it.
Should you invest $1,000 in NuScale Power right now?
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Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool recommends NuScale Power. The Motley Fool has a disclosure policy.
