NuScale Power Stock Surges on Landmark TVA Nuclear Deal
A historic agreement to deploy 6 gigawatts of SMR power and a key analyst upgrade to a $60 price target sent shares soaring over 10%.
Shares of NuScale Power (NYSE: SMR) surged more than 10% on Wednesday following the announcement of a historic agreement to deploy its small modular reactor (SMR) technology across the Tennessee Valley.
The rally was ignited by news that NuScale's partner, ENTRA1 Energy, has entered into a for the largest SMR deployment program in United States history. The ambitious plan aims to develop up to six gigawatts of new, carbon-free nuclear power, directly addressing the soaring energy needs of the region's growing high-tech industries.
The deal is designed to meet the surging electricity demand from energy-intensive sectors such as artificial intelligence, hyperscale data centers, and semiconductor manufacturing. "We are honored that ENTRA1 has selected NuScale’s U.S. NRC-approved SMR technology for this historic deployment,” said John Hopkins, NuScale’s President and CEO, who noted the partnership's criticality for powering the nation's economic future.
Wall Street's reaction was swift and positive, with while maintaining a "Buy" rating. The firm cited the TVA partnership as a key validation of NuScale's technology and a pivotal step in advancing nuclear energy in America. The involvement of the TVA, a federally owned utility with significant regulatory expertise, is expected to streamline the permitting and construction process.
This announcement places NuScale at the forefront of a broader rally in the nuclear energy sector, which is benefiting from policy support for domestic power production and the insatiable energy demands of the AI boom. The company's market position is further solidified by its unique regulatory standing, as it is the , enhancing its appeal to investors looking for credible, long-term growth in the clean energy transition.