NuScale Power Faces Market Challenges Despite Regulatory Approval
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy SMR?
Source: Fool
- Poor Market Performance: NuScale Power's stock has plummeted nearly 70% over the past six months, with a market cap of about $4 billion, indicating a lack of market confidence despite having the first NRC-approved SMR design, which could hinder future financing and project advancement.
- Regulatory Advantage: NuScale's 77-megawatt SMR design received NRC approval in May 2025, making it the only U.S. company legally able to deploy SMRs; however, the absence of customer demand has prevented this advantage from translating into actual sales, limiting its market expansion capabilities.
- High Project Costs: The planned SMR project in Romania is expected to utilize six NuScale modules to generate approximately 460 megawatts of power, with an estimated cost of around $7 billion, which may deter potential customers due to the high investment, impacting NuScale's market appeal.
- Increased Competitive Pressure: Although NuScale is a leader in the SMR space, it risks facing competition from companies like Oklo that employ novel cooling technologies if it fails to secure significant contracts soon, prompting investors to carefully assess its long-term value.
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Analyst Views on SMR
Wall Street analysts forecast SMR stock price to rise
13 Analyst Rating
5 Buy
6 Hold
2 Sell
Hold
Current: 12.140
Low
18.50
Averages
32.77
High
60.00
Current: 12.140
Low
18.50
Averages
32.77
High
60.00
About SMR
NuScale Power Corporation is a provider of proprietary advanced small modular reactor (SMR) nuclear technology. The NuScale Power Module, the Company's SMR technology, is a small pressurized water reactor that can generate approximately 77 megawatts of electricity (MWe) or 250 megawatts thermal (gross) and can be scaled to meet customer needs through an array of flexible configurations of up to 924 MWe (12 modules) of output. In addition to the sale of NPMs, it offers a diversified suite of services throughout the development and operating life of the power plant. The Company's suite of services is planned to include licensing support, testing, training, fuel supply services and program management, among others. It serves a range of customers consisting of domestic and international governments, utilities, state-owned enterprises and technology and industrial companies in need of carbon-free, reliable energy.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
NuScale Power Corporation's SMR Stock Investment Thesis
- Market Potential: NuScale Power Corporation focuses on small modular reactor (SMR) technology, targeting approximately 6 GW of capacity by 2030, indicating significant long-term growth potential in the clean, reliable baseload power market.
- Regulatory Advantage: The company has secured U.S. Nuclear Regulatory Commission approval for its light-water SMR design, providing a crucial regulatory edge that distinguishes it as a first mover in the industry.
- Investment Risks and Opportunities: Although NuScale is currently unprofitable with significant cash burn, this reflects the early-stage nature of the nuclear sector, and securing binding power purchase agreements could lead to substantial valuation increases in the future.
- Comparison with AI Stocks: While SMR holds promise, investors may prefer AI stocks that offer higher returns in a shorter timeframe, highlighting a diverse market perspective on investment opportunities.
See More
Fluor Sells NuScale Stake for 326% Profit Amid Nuclear Energy Surge
- Stock Surge: NuScale Power's stock surged to $57 per share over the past year, attracting numerous investors, prompting Fluor, an early investor, to sell its stake at this high valuation to realize profits.
- Significant Sale Proceeds: Fluor sold its 126 million shares of NuScale Power for $2.43 billion in gross proceeds, having initially invested $570 million, achieving a remarkable 326% return on investment, which significantly bolsters the company's financial position.
- Strategic Reinvestment: Fluor plans to use the proceeds from the sale to strengthen its balance sheet, reduce debt, and support its $1.4 billion share repurchase program, while continuing to pursue high-growth opportunities in the nuclear sector.
- Ongoing Partnership: Although Fluor has reduced its equity stake in NuScale, it will remain a preferred engineering, procurement, and construction (EPC) partner, allowing it to participate in NuScale's ongoing development while mitigating equity-owner risks and maintaining service revenue.
See More
Fluor Sells NuScale Stake to Strengthen Financial Position
- Profitable Stake Sale: Fluor realized $2.43 billion in gross proceeds from its sale of NuScale Power shares, achieving a remarkable 326% return on its initial $570 million investment, with plans to use these funds to strengthen its balance sheet and support a $1.4 billion share repurchase program.
- Market Opportunity Seized: By selling its 126 million shares when NuScale's stock surged to $57 per share, Fluor capitalized on a high valuation, providing substantial profits for early investors and demonstrating the company's keen insight into the nuclear energy market.
- Strategic Partnership: Although Fluor has transitioned from a majority owner to a preferred EPC partner for NuScale, it will continue to participate in ongoing developments, ensuring a steady revenue stream while mitigating equity ownership risks.
- Diversified Growth Strategy: Fluor is actively pursuing additional opportunities in conventional nuclear and SMR projects in collaboration with various technology providers, while also expanding into carbon capture, utilization, and storage, as well as hydrogen production, to meet rising infrastructure demands.
See More
Analysis of Nuclear Stocks Market Outlook
- Market Performance Decline: In 2026, both Oklo and NuScale Power have seen declines, with Oklo down approximately 11% year-to-date and NuScale nearly 27%, indicating market caution towards nuclear stocks.
- Market Value Comparison: NuScale's market cap stands at about $3.6 billion, significantly lower than Oklo's $11.3 billion, suggesting a more attractive market positioning for NuScale, especially with its NRC-certified small modular reactor design.
- Revenue Expectation Discrepancy: NuScale is expected to generate significantly higher revenue over the next two years compared to Oklo, which likely won't have a deployable reactor certification until 2027 or 2028, causing a lag in its commercialization process.
- Investment Risk Assessment: While NuScale holds an advantage in small reactor design, it has yet to secure any sales, and its business path is primarily tied to large power providers, necessitating cautious evaluation of its future growth potential.
See More
NuScale Power: Potential and Challenges in the Nuclear Market
- Market Performance Comparison: In 2026, NuScale Power's stock has fallen nearly 27%, while Oklo's stock is down about 11%, indicating increasing competitive pressure in the nuclear market, prompting investors to carefully assess each company's market performance and potential.
- Valuation Discrepancy: With a market cap of approximately $3.6 billion, NuScale is significantly undervalued compared to Oklo's $11.3 billion, suggesting that NuScale may be a better value proposition in the current market, despite its more mature regulatory position regarding small modular reactors.
- Revenue Outlook: NuScale is expected to generate significantly more revenue than Oklo over the next two years, as Oklo is unlikely to receive certification for a deployable reactor until 2027 or 2028, leaving it without a revenue source in the near term.
- Investment Recommendation: Although NuScale is the only U.S. company with an NRC-approved small reactor design, it has yet to secure sales, leading investors to exercise caution in their choices, considering its ties to large power providers and the uncertainties in the market.
See More
The Future Potential of Small Modular Reactors
- Nuclear Market Renaissance: According to a Bank of America research report, nuclear energy is expected to experience a $10 trillion renaissance over the next decade due to surging electricity demand, particularly driven by AI and data centers, highlighting the strategic significance of SMR technology.
- Advantages of SMR Technology: Small Modular Reactors (SMRs) can provide clean energy at lower costs and smaller footprints due to their compact designs and faster construction times, making them highly attractive for meeting the urgent energy needs of data centers.
- Differentiated Company Strategies: Oklo and NuScale exhibit significant differences in their go-to-market strategies, with Oklo focusing on bespoke solutions for AI data centers while NuScale targets utility-scale deployments, reflecting their distinct market positioning and potential returns.
- Balanced Investment Portfolio: Although the combined market caps of Oklo and NuScale remain below $20 billion, investing in both companies offers investors a more balanced exposure to SMR technology, capitalizing on the potential gains in the rapidly growing nuclear energy market.
See More
NuScale Power Corporation's SMR Stock Investment Thesis
- Market Potential: NuScale Power Corporation focuses on small modular reactor (SMR) technology, targeting approximately 6 GW of capacity by 2030, indicating significant long-term growth potential in the clean, reliable baseload power market.
- Regulatory Advantage: The company has secured U.S. Nuclear Regulatory Commission approval for its light-water SMR design, providing a crucial regulatory edge that distinguishes it as a first mover in the industry.
- Investment Risks and Opportunities: Although NuScale is currently unprofitable with significant cash burn, this reflects the early-stage nature of the nuclear sector, and securing binding power purchase agreements could lead to substantial valuation increases in the future.
- Comparison with AI Stocks: While SMR holds promise, investors may prefer AI stocks that offer higher returns in a shorter timeframe, highlighting a diverse market perspective on investment opportunities.
See More
Fluor Sells NuScale Stake for 326% Profit Amid Nuclear Energy Surge
- Stock Surge: NuScale Power's stock surged to $57 per share over the past year, attracting numerous investors, prompting Fluor, an early investor, to sell its stake at this high valuation to realize profits.
- Significant Sale Proceeds: Fluor sold its 126 million shares of NuScale Power for $2.43 billion in gross proceeds, having initially invested $570 million, achieving a remarkable 326% return on investment, which significantly bolsters the company's financial position.
- Strategic Reinvestment: Fluor plans to use the proceeds from the sale to strengthen its balance sheet, reduce debt, and support its $1.4 billion share repurchase program, while continuing to pursue high-growth opportunities in the nuclear sector.
- Ongoing Partnership: Although Fluor has reduced its equity stake in NuScale, it will remain a preferred engineering, procurement, and construction (EPC) partner, allowing it to participate in NuScale's ongoing development while mitigating equity-owner risks and maintaining service revenue.
See More
Fluor Sells NuScale Stake to Strengthen Financial Position
- Profitable Stake Sale: Fluor realized $2.43 billion in gross proceeds from its sale of NuScale Power shares, achieving a remarkable 326% return on its initial $570 million investment, with plans to use these funds to strengthen its balance sheet and support a $1.4 billion share repurchase program.
- Market Opportunity Seized: By selling its 126 million shares when NuScale's stock surged to $57 per share, Fluor capitalized on a high valuation, providing substantial profits for early investors and demonstrating the company's keen insight into the nuclear energy market.
- Strategic Partnership: Although Fluor has transitioned from a majority owner to a preferred EPC partner for NuScale, it will continue to participate in ongoing developments, ensuring a steady revenue stream while mitigating equity ownership risks.
- Diversified Growth Strategy: Fluor is actively pursuing additional opportunities in conventional nuclear and SMR projects in collaboration with various technology providers, while also expanding into carbon capture, utilization, and storage, as well as hydrogen production, to meet rising infrastructure demands.
See More
Analysis of Nuclear Stocks Market Outlook
- Market Performance Decline: In 2026, both Oklo and NuScale Power have seen declines, with Oklo down approximately 11% year-to-date and NuScale nearly 27%, indicating market caution towards nuclear stocks.
- Market Value Comparison: NuScale's market cap stands at about $3.6 billion, significantly lower than Oklo's $11.3 billion, suggesting a more attractive market positioning for NuScale, especially with its NRC-certified small modular reactor design.
- Revenue Expectation Discrepancy: NuScale is expected to generate significantly higher revenue over the next two years compared to Oklo, which likely won't have a deployable reactor certification until 2027 or 2028, causing a lag in its commercialization process.
- Investment Risk Assessment: While NuScale holds an advantage in small reactor design, it has yet to secure any sales, and its business path is primarily tied to large power providers, necessitating cautious evaluation of its future growth potential.
See More
NuScale Power: Potential and Challenges in the Nuclear Market
- Market Performance Comparison: In 2026, NuScale Power's stock has fallen nearly 27%, while Oklo's stock is down about 11%, indicating increasing competitive pressure in the nuclear market, prompting investors to carefully assess each company's market performance and potential.
- Valuation Discrepancy: With a market cap of approximately $3.6 billion, NuScale is significantly undervalued compared to Oklo's $11.3 billion, suggesting that NuScale may be a better value proposition in the current market, despite its more mature regulatory position regarding small modular reactors.
- Revenue Outlook: NuScale is expected to generate significantly more revenue than Oklo over the next two years, as Oklo is unlikely to receive certification for a deployable reactor until 2027 or 2028, leaving it without a revenue source in the near term.
- Investment Recommendation: Although NuScale is the only U.S. company with an NRC-approved small reactor design, it has yet to secure sales, leading investors to exercise caution in their choices, considering its ties to large power providers and the uncertainties in the market.
See More
The Future Potential of Small Modular Reactors
- Nuclear Market Renaissance: According to a Bank of America research report, nuclear energy is expected to experience a $10 trillion renaissance over the next decade due to surging electricity demand, particularly driven by AI and data centers, highlighting the strategic significance of SMR technology.
- Advantages of SMR Technology: Small Modular Reactors (SMRs) can provide clean energy at lower costs and smaller footprints due to their compact designs and faster construction times, making them highly attractive for meeting the urgent energy needs of data centers.
- Differentiated Company Strategies: Oklo and NuScale exhibit significant differences in their go-to-market strategies, with Oklo focusing on bespoke solutions for AI data centers while NuScale targets utility-scale deployments, reflecting their distinct market positioning and potential returns.
- Balanced Investment Portfolio: Although the combined market caps of Oklo and NuScale remain below $20 billion, investing in both companies offers investors a more balanced exposure to SMR technology, capitalizing on the potential gains in the rapidly growing nuclear energy market.
See More
