Shares of NuScale Power (SMR 9.04%) were moving higher today after the development-stage maker of small modular reactors reported third-quarter results last night.

While the numbers weren’t the focus, management commentary on its progress seemed to please investors.

As a result, the stock was up 4.3% as of 1:42 p.m. ET after being up as much as 19.2% earlier in the session.

Image source: Getty Images.

NuScale takes some more baby steps

Nuscale reported revenue of $475,000 in the quarter and a net loss of $17.5 million, or $0.18 per share, which compared to estimates at $3.14 million and a loss of $0.09 per share. The company finished the quarter with $161.7 million in short-term investments and no debt.

However, those numbers are mostly irrelevant as the stock is seen as a bet on big tech’s embrace of nuclear energy to run its data centers, and NuScale is a potential leader in that industry.

The company is still the only maker of small modular reactors (SMRs) that’s approved by the Department of Energy. It also signed a contract with Fluor, its majority owner, to proceed with a new study for an SMR power plant in Romania, which would be the first of its kind in Europe. Fluor is planning to de-consolidate its stake in NuScale.

Management also noted progress in working with data center/artificial intelligence (AI) customers and said supply chain partner Doosan Enerbility was making progress on its first NuScale Power Modules.

Can NuScale keep gaining?

The data center story has been the main story driving NuScale stock higher, and according to McKinsey, data center consumption of U.S. electricity is expected to grow from 3%-4% to 11%-12% between 2023 and 2030, creating a huge opportunity for NuScale and its peers.

Keep an eye on NuScale’s project development as it still hasn’t gotten a project up and running, but with the interest in nuclear energy building, the upside potential for the stock is considerable.