This Growth Stock Has More Than Doubled in 2024. Here's Why You Shouldn't Buy It.
NuScale Power (NYSE: SMR) has a great story for investors and, at least right now, Wall Street is eating that story up. The stock has gained well more than 100% so far in 2024. Clearly investors are excited about this nuclear power company's prospects, but don't buy the stock just yet. There are some issues to consider first.
The stock price of a company usually doesn't double in less than six months for no reason at all. And NuScale Power does, in fact, have some good news. In late 2023 it signed an agreement to supply 24 small-scale nuclear power plants to power data centers in Ohio and Pennsylvania. That's the first order the company has received.
Nuclear power is a great option for data centers, too, because it is a base load power source. Unlike solar and wind power, which are intermittent, a nuclear power plant is always producing energy. Given the huge energy needs of data centers, pairing them with nuclear energy seems like a no-brainer as artificial intelligence (AI) drives increasing demand for data centers.
Source Fool.com
