NuScale Power Positioned for Long-Term AI Energy Surge

The rapid expansion of artificial intelligence is creating an unprecedented surge in electricity demand, placing immense pressure on existing power grids. NuScale Power (NYSE: SMR) is positioning itself to address this gap through the development of small modular reactors (SMRs), which offer a scalable alternative to traditional nuclear plants. After a long period of stagnation in U.S. electricity generation between 2005 and 2020, demand is projected to grow by approximately 4% annually from 2024 to 2030. This growth is largely attributed to the massive compute requirements of AI models and the subsequent proliferation of energy-intensive data centers that require constant, high-capacity power for operations and cooling. NuScale's stock has experienced extreme volatility over the past year. Shares peaked above $50 in July before retreating to current levels around $10. Wall Street analysts remain deeply divided on the company's valuation, with current 12-month price targets ranging from a bearish $11.50 to a bullish $28, with an average consensus of $18. The company faces a long road to commercialization, with its first plant not expected to generate power until at least 2030. While the global nuclear energy opportunity is estimated at $10 trillion, NuScale has struggled with customer cancellations and short-term unpredictability. For long-term investors, the stock serves as a speculative proxy for the broader nuclear renaissance. However, the lack of immediate revenue from power generation means the asset remains subject to high volatility and significant execution risk.