Jim Cramer’s Latest Stock Picks

11. NuScale Power Corporation (NYSE:SMR)

Number of Hedge Fund Holders: 16

Cramer said that NuScale Power Corporation (NYSE:SMR) is bleeding money. Here’s what he said:

“Yes, again, that’s a small scale nuclear module reactor [company]. And I think that company’s losing a lot of money. You might as well go again with GE Vernova, GEV, because that’s something else to fall back on and you still get the nukes.”

NuScale Power (NYSE:SMR) focuses on the design and sale of modular light water reactor nuclear power plants, aiming to provide energy for various applications, including electricity generation, district heating, desalination, hydrogen production, and process heat. In late 2022, the Utah Associated Municipal Power System (UAMPS) decided to terminate its agreement with the company that dated back to 2015.

The agreement had originally outlined plans for the construction of twelve reactor modules, which were expected to be operational by 2023. However, the estimated costs for this project ballooned from an initial $3 billion to a staggering $9.3 billion, leading UAMPS to reconsider its commitment. Consequently, the company’s plans for its first operational small modular reactor (SMR) were abandoned, resulting in a $50 million charge for the company.

As NuScale Power (NYSE:SMR) moved into the second quarter of 2024, the financial results showed ongoing difficulties. The company recorded revenue of $1.0 million for the quarter, a significant decline from the $5.8 million generated in the same period the previous year. Alongside this revenue drop, it faced a net loss of $74.4 million, which marked a substantial increase from the net loss of $29.7 million reported a year earlier.