Why NuScale Power Stock Rocketed 23.7% Higher in June

NuScale Power (NYSE: SMR) stock experienced a substantial rally, gaining 93% in May and 23.7% in June, fueled by increasing political support for nuclear energy and the company's ongoing discussions with "Tier 1" hyperscaler data center developers for AI infrastructure power solutions. This surge was further bolstered by the Nuclear Regulatory Commission's approval of a second SMR design (50MW and 77MW), positioning NuScale as the sole SMR company with such regulatory clearance. Despite strong investor interest in its potential role in the AI power demand, the article notes NuScale remains a high-risk, volatile investment.

Analysis

NuScale Power (SMR) has experienced a significant stock rally, surging 93% in May and another 23.7% in June, driven by a confluence of powerful catalysts. A key factor is growing political support for nuclear energy, specifically highlighted by executive orders aimed at accelerating advanced nuclear technologies to power AI infrastructure. This macro tailwind is complemented by a critical company-specific milestone: the Nuclear Regulatory Commission's (NRC) approval of a second small modular reactor (SMR) design, giving NuScale approved 50 MW and 77 MW modules. This positions NuScale as the only SMR developer with NRC design approval, a significant competitive advantage. Investor enthusiasm was further amplified by CEO John Hopkins' confirmation of active discussions with "Tier 1" hyperscalers for potential power purchase agreements. However, despite these strong positive developments and a high per-ticker sentiment score, the article explicitly frames NuScale as a high-risk, volatile investment, noting that its ability to execute on its long-term vision remains uncertain.

Key Decisions for Investors

• Investors with a high tolerance for risk may consider the stock, given its unique regulatory advantage as the only SMR company with NRC approval and its direct exposure to the high-growth AI data center power demand theme.
• Given the stock's pronounced volatility and speculative nature, market participants should closely monitor for concrete progress on commercial agreements with hyperscalers, as these will be a key validation of its business model.
• For those seeking exposure to the nuclear energy sector with a more conservative risk profile, diversifying through a nuclear energy-focused exchange-traded fund could be a more prudent strategy than a concentrated position in NuScale.