During the September 3 broadcast of Mad Money, host Jim Cramer addressed the rapidly expanding power demands of AI data centers by contrasting established industrial power giant GE Vernova Inc. (NYSE:GEV) with early-stage nuclear developer NuScale Power Corporation (NYSE:SMR). A caller mentioned the persistent losses in GE Vernova Inc.’s wind business and asked if they should reduce their holdings in the stock given that Elon Musk seems to be getting into the generator business. Jim Cramer stated:
I think Elon’s doing it for his own businesses. The wind business has been a disappointment. We all know that. That stock [has] like the worst head and shoulders chart I have seen in a long time. However, I think the orders are going to continue. I think that the hyperscalers are going to find a way to be able to make it so that we like a data center next to us by maybe making our rates go down. And I am not that worried about GEV because it has fallen so much from its high. Maybe another hundred and we’ll keep buying.
Later in the episode, another caller asked why NuScale Power Corporation has struggled to recapture the soaring highs it achieved the previous year. Cramer responded:
I think what’s happened is people recognize that it’s a lot harder to build a nuclear power plant, whether it be big or small or modular. It doesn’t matter, just really really hard. That’s why we own GE Vernova for the Trust because at least it’s got some nuclear. I don’t feel like the thing’s going to get too out of control. That’s the problem.
Industrial Scale and Revenue Backlog Comparison
GE Vernova Inc. and NuScale Power Corporation represent two vastly different stages of energy infrastructure deployment. GE Vernova operates from a position of massive commercial scale, generating $11.1 billion in second-quarter revenue, representing a 22% year-over-year increase supported by $24.2 billion in new orders. Its total order backlog expanded to $176 billion, due to heavy utility demand for gas power equipment and electrification hardware. On the other hand, NuScale Power remains in an early commercialization phase, reporting $75,000 in second-quarter revenue down from $8.1 million a year earlier. While NuScale maintains approximately $1.9 billion in total liquidity to fund its development runway, it has yet to convert its small modular reactor technology into signed power purchase agreements or steady recurring revenue.
Execution Risks and Capital Demands
Both companies face distinct operational headwinds as they attempt to capitalize on data center power demand. GE Vernova Inc.’s main drawback stems from its onshore wind division. However, NuScale Power Corporation faces far steeper structural risks, including complex regulatory licensing, lengthy construction cycles expected to run just under 40 months from the first pouring of safety-related concrete to mechanical completion, in addition to the licensing work required beforehand. To support its long deployment timeline, NuScale registered a $750 million at-the-market equity offering on August 11, creating potential share dilution for existing equity holders.
Hedge Fund Ownership and Short Exposure
According to Insider Monkey’s database tracking hedge fund holdings, GE Vernova Inc. was held by 106 hedge funds in Q2 compared to 118 in the previous quarter. Meanwhile, NuScale Power Corporation was held by 34 hedge funds in Q2 compared to 38 in the prior quarter. Short interest metrics highlight a wide divide in market confidence, with the short percentage of float standing at 2.98% for GE Vernova compared to 18.40% for NuScale, showing significantly higher bearish positioning against the smaller nuclear developer.
For investors choosing between the two names, GE Vernova Inc. provides a diversified, cash-generative entry point into grid modernization, whereas NuScale Power Corporation offers speculative exposure to next-generation nuclear technology that has yet to prove its commercial scalability. While NuScale must overcome immense regulatory and financial hurdles, GE Vernova’s established revenue engine makes it Cramer’s preferred vehicle for navigating the energy transition.
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