NuScale, Plug Power, and CleanSpark are projected to experience significant growth in the coming years.
Over the past year, many renewable energy stocks faced challenges as the Trump administration favored fossil fuels, and market instability was exacerbated by divisive tariffs. However, this downturn might present a lucrative buying opportunity for those anticipating sustained growth in the demand for renewable energy solutions in the long term.
For investors able to disregard short-term market fluctuations, NuScale Power, Plug Power, and CleanSpark could potentially yield substantial returns from a modest $2,000 investment. These stocks, though speculative, may gain considerable attention as they expand their operations.
### The Nuclear Play: NuScale Power
NuScale Power specializes in developing small modular reactors (SMRs) for nuclear energy, designed to be compact and pre-assembled, making them more cost-effective and easily deployable compared to traditional nuclear reactors. Currently, NuScale’s SMRs are the sole reactors to have obtained a standard design approval from the U.S. Nuclear Regulatory Commission (NRC) for generating up to 55 megawatts of electricity. However, for these SMRs to be more cost-efficient than coal-fired plants, they need to generate at least 77 megawatts of electricity, and NuScale anticipates receiving NRC approval for these designs within the year.
Until then, the company primarily generates revenue by subcontracting on a 462-megawatt power plant project in collaboration with Romania’s RoPower. In 2024, NuScale’s revenue was $37 million, with projections suggesting growth to $402 million by 2027, fueled by new NRC design approvals, expanded U.S. contracts, and increasing energy demands from the data center market. With a market capitalization of $2.06 billion, NuScale is currently valued at five times its projected 2027 sales, indicating potential for substantial growth in the coming decades.
### The Hydrogen Play: Plug Power
Plug Power focuses on hydrogen fuel cell technologies, including charging, storage, and transport. It has deployed over 69,000 fuel cell systems and operates more than 250 fueling stations globally. Major retailers Amazon and Walmart, through stock warrants, are among its significant clients, using its hydrogen fuel cells in warehouse equipment.
In 2024, Plug Power experienced a 29% decline in revenue, amounting to $629 million, and its net loss increased from $1.4 billion to $2.1 billion, influenced by macroeconomic challenges limiting the market’s demand for hydrogen projects. Despite these challenges, analysts anticipate a 32% compound annual growth rate in revenue from 2024 to 2027, driven by market stabilization, new contract acquisitions, and a $1.66 billion loan guarantee from the U.S. Department of Energy for building six green hydrogen manufacturing plants. While profitability remains a distant goal, Plug Power’s efforts to cut costs and engage in equipment transactions to lessen net losses position it strategically. With a market cap of $1.2 billion, it trades at 1.6 times its annual sales, setting the stage for potential growth if positive developments unfold.
### The Clean Crypto Play: CleanSpark
Initially, CleanSpark developed modular microgrids for renewable energy sources like wind and solar. These microgrids can independently operate or integrate into existing grids, enhancing energy storage, management, and backup solutions.
Four years ago, CleanSpark branched into Bitcoin mining by acquiring ATL Data Centers, subsequently enhancing its operations with its microgrid technology. This strategic shift towards clean energy for Bitcoin mining set CleanSpark apart from competitors reliant on coal-powered operations. By the end of 2024, CleanSpark held 9,952 Bitcoins, valued at $819 million, representing 38% of its market capital of $2.1 billion. Additionally, its miner fleet grew by 127% year-over-year, achieving a remarkable 288% increase in operating hash rate to 39.1 EH/s.
From fiscal 2024 to 2027, analysts forecast CleanSpark’s revenue growth from $379 million to $1.1 billion, coupled with a reduction in net losses. If these projections hold, CleanSpark remains reasonably valued at 1.9 times its fiscal 2027 sales. Although Bitcoin price volatility could pose challenges, CleanSpark is likely to outperform traditional Bitcoin miners if cryptocurrency prices stabilize or increase, thereby attracting more investment interest.