NuScale Power's shares are experiencing a significant uptick as the market responds to the growing demand for energy driven by artificial intelligence (AI) and the increasing viability of low-cost solar power. The recent breakthrough by the Chinese AI company DeepSeek, which has developed an AI model that operates with a fraction of the energy typically required, has shifted the focus away from traditional energy sources like natural gas. This development has prompted a reevaluation of energy strategies, with a renewed emphasis on clean energy solutions, including nuclear power, which NuScale specializes in. The AI-driven energy demand is expected to continue rising, and NuScale's small modular reactors (SMRs) are seen as a promising solution to meet this demand efficiently and sustainably.
The broader energy landscape is also being reshaped by the need for enhanced transmission infrastructure to support the growing electricity demand from AI and data centers. As the U.S. aims to maintain its competitive edge in the global AI race, the focus is on expanding the transmission grid to ensure reliable and affordable energy supply. This shift towards modernizing the grid and integrating more renewable energy sources aligns with NuScale's capabilities in providing scalable and flexible nuclear power solutions. The company's technology is well-positioned to capitalize on these trends, as it offers a carbon-free alternative that can complement the increasing deployment of solar and other renewable energy sources.
NuScale Power (SMR) shares have risen 9.50% to $25.82 as of 1:51 pm on January 31st, up from the previous close of $23.58.