The AI-driven nuclear power resurgence has been one of the hottest storylines over the past year. It has driven significant interest in nuclear energy stocks. Nuclear names like Oklo (NYSE: OKLO) and NuScale (NYSE: SMR) have been hot commodities as investors buy into the hype that these promising companies can cash in on the nuclear power megatrend.
However, while all eyes have been on Oklo and NuScale, investors might be overlooking another company that's also building a small modular reactor (SMR): GE Vernova (NYSE: GEV). While more known for its leading gas turbine and wind energy business, the massive power equipment maker is becoming an underappreciated nuclear energy name to watch. This Rare Signal Is Flashing Again.
In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » GE Vernova already has an established nuclear power services business.
During the second quarter, the company noted that power service orders rose 12%, driven by nuclear and gas power. The company also highlighted that its services revenue increased, due again to both nuclear and gas power. The company is also investing in nuclear power for the long-term.
CEO Scott Strazik highlighted this on the second-quarter call when discussing the company's long-term investments. He noted that, on nuclear, "we continue advancing the SMR for industrialization at scale, as evidenced by our progress on the existing project underway in Ontario." That project (using GVH's BWRX-300 design) is already under construction, with completion expected by the end of the decade. Once finished, it will be the first grid-scale SMR in the Western world, putting GE Vernova ahead of both Oklo and NuScale.
Additionally, the CEO noted that in the second quarter, the company "secured two more tech selects in early work agreements for our SMR in the U.S.," potentially positioning it for greater nuclear-powered growth. It has since launched the next phase of what could become its next nuclear project. In mid-August, GE Vernova Hitachi Nuclear Energy (GVH) and Blue Energy signed an agreement to advance their collaboration to deploy a 2.5-gigawatt (GW) gas-plus-nuclear power plant in Texas.
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