Why NuScale Power Stock Soared 120.6% Higher in the First Half of 2025

Key Points

• Shares of small modular reactor developer NuScale Power skyrocketed in 2024 and continued soaring in the first half of 2025.

• President Trump's executive orders addressing advancement of the nuclear energy industry represented the primary catalyst for the stock's rise.

• There are still considerable risks with an unprofitable company like NuScale Power, so investors looking to mitigate risk may prefer a nuclear energy ETF.

• 10 stocks we like better than NuScale Power ›

To the chagrin of investors, NuScale Power (NYSE: SMR) stock dipped lower more than 7% through the first four months of 2025, giving back a bit of the whopping 445% gain that it had logged in 2024.

But then May rolled around.

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Thanks to President Trump's enthusiastic support of the nuclear energy industry, shares of small modular reactor (SMR) developer NuScale Power ripped higher and extended their gain in June. All in all, NuScale Power stock soared 120.6% through the first six months of 2025, according to data provided by S&P Global Market Intelligence.

Image source: Getty Images.

President Trump gives the green light to a niche of the green energy industry

The lack of President Trump's enthusiasm for clean energy-affiliated business from electric cars to wind power has been clear for some time. What became glaringly apparent in late May, however, was his affinity for nuclear energy. On May 23, President Trump issued executive orders meant to spur advancement of the nation's nuclear energy industry -- and NuScale Power investors were paying attention.

Providing a plan for modernizing the country's nuclear energy reactors, Trump's executive orders address several areas of the industry. For one, the orders are meant to expedite the Nuclear Regulatory Commission's process for licensing new reactors. Plus, the orders seek to reduce the time it takes to test advanced reactors -- something of particular note for NuScale Power, which is working toward commercial deployment of its SMR NuScale Power Module.

Particularly noteworthy in the executive orders is President Trump's direction to the Department of Energy to recognize artificial intelligence (AI) data centers as "critical defense facilities." In concert with this, the orders direct the secretary of energy to use "all available legal authorities to site, approve, and authorize deployment of advanced reactors to power them."

With AI companies making hefty investments in developing data center infrastructure, the opportunities for SMR developers like NuScale Power are ample.

While the executive orders represented the major catalyst behind the stock's rise in the first half of the year, that's not to say that there was nothing in June that stoked investors' excitement. On June 5, John Hopkins, the company's CEO, revealed in a discussion with Axios Pro that NuScale Power is communicating with several "tier 1" hyperscalers that are interested in purchasing power from the company.

What can investors expect in the remainder of 2025

In light of NuScale Power stock's climb in 2024 and through the last six months, it seems reasonable to expect that shares will pull back at some point. Growth stocks like NuScale Power often demonstrate considerable volatility in the early innings of their development.

For those uncomfortable with enduring the stock's potential vicissitudes and the inherent risks associated with a company that's not yet profitable, it may be more prudent to consider a nuclear energy-focused exchange-traded fund (ETF) at this point.

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Scott Levine has no position in any of the stocks mentioned. The Motley Fool recommends NuScale Power. The Motley Fool has a disclosure policy.