This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy.
Nuclear energy is currently attracting exorbitant interest to meet the soaring demand from data centers throughout the continental US as the nation prepares to tap the century-defining potential that AI offers. Now, Craig-Hallum has upgraded the stock price outlook of NuScale, citing its regulatory head start and "a meaningful pipeline and customer list, including in AI/data center applications."
Connect the Dots
A. Google announcement a few days back.
B. Microsoft with 3 mile island.
C. Ellison? Oracle with 3 SMRs.
D. Apple and META are next!— Lawrence McDonald (@Convertbond) October 16, 2024
The so-called Mag 7 companies have been aggressively pivoting towards nuclear energy in recent months to meet their soaring energy demands from AI-related workloads. By now, Google, Microsoft, Oracle, and Amazon have all announced their plans to tap nuclear energy via either the conventional route or the so-called SMRs, which are small-scale, modular reactors, with an as yet unproven track record. Moreover, it appears increasingly likely that Apple and Meta might also announce their nuclear-focused deals soon.
also known as the "Next AI Trade", or "Power Up America", laid out to subs in April. This is the best performing basket of 2024, outperforming even the Broad AI tradehttps://t.co/3WxL99fSed https://t.co/ovOOjMtaAl pic.twitter.com/ngeAtKsR6C
— zerohedge (@zerohedge) October 16, 2024
In fact, so fierce is this nuclear-focused tailwind at the moment that it has been dubbed the "next AI trade." According to HSBC, data centers can account for 9 percent of the total electricity consumption in the US by 2030. Logically, nuclear energy provides the only sustainable, zero-carbon option to meet this oncoming demand.
NUSCALE POWER $SMR price-target raised to $21 (from $16) at Craig-Hallum, saying a nuclear power "renaissance" is underway, and we are at the beginning of a "multi-decade megatrend":
"A nuclear power renaissance is underway with nuclear increasingly viewed as a solution which…
— Stock Talk (@stocktalkweekly) October 17, 2024
This brings us to the crux of the matter. Craig-Hallum has now raised NuScale's stock price target to $21 per share, citing a secular tailwind from a nuclear power "renaissance" that is likely to evolve into a "multi-decade megatrend.
The investment bank notes:
"As part of this shift, small modular nuclear reactors have a real place in multiple applications, especially in support of the urgent need for zero-emissions baseload power for AI/data centers."
For the benefit of those who might not be aware, SMRs pair high energy densities with a reliable, zero-carbon power output, making them ideal for data centers. Like all fission reactors, SMRs use a controlled nuclear chain reaction to produce steam that then drives turbines. Increasingly, companies such as Oklo are adopting liquid metals as coolants in their reactors. Most SMRs, however, require low-enriched uranium (HALEU) as the primary fuel, which is in short supply at the moment, given the sanctions on Russia.
Do note that NuScale experienced a considerable setback recently when the Utah Associated Municipal Power Systems (UAMPS) terminated the company's only SMR project, which was also the first of its kind in the US, citing cost overruns. However, the company continues to develop projects in South Korea and Romania.
Coming back, Craig-Hallum states in its investment note that is out today:
"Activity over the last few months has been building and reached a fever pitch over the last few days with high-profile nuclear announcements (including SMRs) by Google and Amazon."
It goes on to note:
"While not involved specifically in either deal, we see NuScale as ideally positioned for an acceleration of nuclear/SMR adoption with a 5+ year regulatory head start and a meaningful pipeline and customer list including in AI/data center applications."
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
Follow Wccftech on Google to get more of our news coverage in your feeds.
