NuScale Power Stock Soars to All-Time High on Amazon's Nuclear Ambitions

Shares of NuScale Power (SMR 30.62%), a leading developer of small modular reactors (SMRs), surged to an all-time high on Wednesday, October 16, 2024, following reports that Amazon (AMZN -0.76%) is exploring the use of SMRs to power its data centers. The tech giant's interest in nuclear energy, coupled with a short squeeze, drove NuScale's stock up by 31.6% as of 12:36 p.m. ET.

Amazon's announcement on Wednesday morning revealed its plans to invest in nuclear energy projects, signing three agreements to support the construction of new SMRs. Although NuScale was not explicitly mentioned, the company is the only U.S. firm with an SMR design license from the Nuclear Regulatory Commission. This news has sparked optimism among investors, leading to a significant increase in trading volume and a short squeeze.

Amazon's interest in nuclear power could have a positive impact on NuScale's future revenue growth. As the tech giant explores the use of SMRs for its data centers, it may consider partnering with NuScale or other SMR developers. This could open up new markets for NuScale and contribute to its growth prospects.

However, NuScale faces several regulatory hurdles in deploying its SMR technology. The company must navigate complex licensing processes and address safety concerns related to nuclear power. Amazon's involvement could potentially help NuScale overcome these challenges by providing political and financial support, as well as access to new markets.

NuScale's stock volatility and high short interest (24% of its stock was sold short at the end of September) have contributed to its recent price surge. While this volatility may present opportunities for investors, it also poses risks. NuScale's stock price could be sensitive to changes in market sentiment and regulatory developments.


NuScale's SMR technology offers several advantages over traditional nuclear reactors. SMRs are smaller, more modular, and can be constructed in factories, reducing construction time and costs. They also have a lower environmental impact and improved safety features, such as passive cooling systems. However, NuScale must still address challenges related to waste management and public acceptance of nuclear power.

Regulatory hurdles for NuScale include obtaining necessary licenses and permits, ensuring compliance with safety standards, and navigating the complex political landscape surrounding nuclear energy. Amazon's involvement could help NuScale overcome these challenges by providing political support and access to new markets.

NuScale's partnership with Amazon and other potential customers could significantly impact the company's growth prospects and stock performance. As Amazon and other tech giants increasingly focus on carbon-free energy sources, NuScale could benefit from increased demand for its SMR technology. However, competition in the SMR market is fierce, and NuScale must continue to innovate and improve its technology to remain competitive.

In conclusion, NuScale Power's stock soared to an all-time high on Wednesday, driven by Amazon's interest in nuclear energy and a short squeeze. While the company faces regulatory hurdles and stock volatility, its SMR technology offers advantages over traditional nuclear reactors. NuScale's partnership with Amazon and other potential customers could significantly impact its growth prospects and stock performance. As the energy market evolves, NuScale must continue to innovate and address challenges related to waste management and public acceptance to remain competitive.