NuScale Power Pursues $10 Trillion Opportunity
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: NASDAQ.COM
- Massive Market Opportunity: Bank of America estimates that over $10 trillion will be spent on new nuclear systems over the coming decades, with small modular reactors (SMRs) playing a significant role, despite only two SMRs currently in operation globally, indicating substantial market potential.
- Clear Technological Advantages: NuScale Power specializes in SMRs, which offer smaller footprints, shorter construction times, and lower initial costs, enabling a rapid response to the rising energy demands, particularly from the energy-intensive data centers required by the AI industry.
- Favorable Investment Timing: Investors have the opportunity to buy shares before the May 7 earnings report, as the stock has dropped nearly one-third in value, and while volatility may occur, entering now could lay the groundwork for long-term gains.
- Optimistic Future Outlook: NuScale Power aims to have its first design operational by 2030, although delays are possible; with over 80 commercial SMR designs in development, the next decade could see significant commercialization, further driving company growth.
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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: 12.650
Low
18.50
Averages
32.77
High
60.00
Current: 12.650
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 Faces Challenges in Securing First Reactor Sale
- Market Reaction: NuScale Power's shares have fallen 75% from their 52-week high, and despite having a regulatory-approved nuclear reactor design, the lack of actual customers has diminished market confidence, prompting investors to exercise caution.
- Technological Advantages and Risks: The company's small modular reactor design incorporates modern safety features and can be manufactured in factories for easy transport; however, until a first sale is completed, these advantages remain theoretical, increasing investment risks.
- Potential Customer Collaborations: NuScale is working with foreign power companies and has agreements with U.S. firms for potential SMR sales, although no concrete sales have materialized yet, indicating existing market demand that could lead to future opportunities.
- Government Support and Market Outlook: The U.S. government has expressed support for SMRs and provided funding; if NuScale can successfully sell its reactors, it could become an attractive investment amid rising electricity demand, but it still faces significant sales hurdles.
See More
Investment Opportunities in Nuclear Power
- Rising Nuclear Demand: Electricity demand is increasing due to the adoption of AI and electric vehicles, leading to a renaissance in nuclear power, with tech giants like Meta, Microsoft, and Google investing heavily to secure stable and sustainable energy supplies.
- NuScale Power's Outlook: NuScale Power's stock has fallen 75% from its 52-week high; while it has an approved design for small modular reactors, it has yet to finalize its first reactor sale and remains unprofitable, making its future growth reliant on the acceptance of SMRs in the market.
- Cameco's Market Position: Cameco has strengthened its role in the nuclear sector by acquiring a 50% stake in Westinghouse, and it anticipates that uranium demand will exceed supply by 2030, potentially driving up uranium prices and boosting its stock performance.
- Brookfield Renewable's Investment Strategy: Brookfield Renewable offers indirect exposure to nuclear power through its ownership of half of Westinghouse and a diversified portfolio of clean energy assets, while providing a high dividend yield of 4.5%, appealing to conservative investors and mitigating investment risks.
See More
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- NuScale Power's Growth Prospects: NuScale Power has an approved design for its small modular reactors (SMRs), yet it has not finalized its first reactor sale, with shares down 75% from their 52-week high, indicating high risk as a startup; however, if SMRs gain traction, it could represent a long-term growth opportunity.
- Cameco's Market Performance: Recently acquiring a 50% stake in Westinghouse, Cameco, a fuel supplier for the nuclear industry, has seen its stock rise 175% over the past year, with expectations that uranium demand will exceed supply by 2030, potentially driving uranium prices higher and boosting company performance.
- Attractiveness of Brookfield Renewable: Brookfield Renewable owns the other half of Westinghouse and boasts a globally diversified portfolio of clean energy assets, offering a 4.5% attractive dividend yield, making it suitable for investors looking to gradually engage with nuclear energy.
- Diversity in Nuclear Investment: There is no single way to invest in nuclear power; NuScale Power appeals to aggressive growth investors, Cameco serves as a solid investment focused on uranium supply, while Brookfield Renewable offers a high-yield option for cautious investors.
See More
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- Market Growth Potential: The nuclear microreactor market is projected to grow from $850 million in 2025 to $6.8 billion by 2034, indicating strong long-term expansion driven by AI data center and energy security demands.
- Surging Energy Demand: Global data center electricity consumption is expected to double from 460 TWh in 2022 to over 1,000 TWh by 2026, prompting operators to seek long-term, carbon-free power sources to meet increasing compute capacity needs.
- Innovative Demonstration Project: Elemental Nuclear's collaboration with the University of Utah marks the first time the TRIGA reactor will power a mini AI data center, representing a significant milestone for small nuclear reactors addressing the energy needs of the AI industry.
- Technological Advancements: The project utilizes a cold helium-based power generation system, showcasing how small nuclear platforms can integrate with advanced power conversion technologies to meet modern computing energy demands and accelerate nuclear technology innovation.
See More
Nuclear Microreactor Market Poised for $6 Billion Growth Driven by AI and Energy Security
- Market Growth Potential: The nuclear microreactor market is projected to expand from approximately $850 million in 2025 to $6.8 billion by 2034, indicating strong long-term growth driven by the demands of AI data centers and energy security priorities.
- Surging Energy Demand: Global data center electricity consumption is expected to double from 460 TWh in 2022 to over 1,000 TWh by 2026, prompting major tech companies to invest hundreds of billions to expand computing capacity, thereby accelerating the demand for nuclear microreactors.
- Innovative Demonstration Project: Elemental Nuclear's collaboration with the University of Utah marks the first time the TRIGA reactor will generate electricity for a mini AI data center, with a modest output of 2-3 kW, symbolizing the potential of small nuclear reactors to meet the energy needs of the AI industry.
- Platform for Innovation: Elemental Nuclear aims to leverage the global network of TRIGA research reactors as a rapid innovation platform, tapping into the expertise of over 1,500 nuclear scientists and engineers to advance next-generation nuclear technologies.
See More
NuScale Power Faces Market Challenges Despite Regulatory Approval
- 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.
See More
NuScale Power Faces Challenges in Securing First Reactor Sale
- Market Reaction: NuScale Power's shares have fallen 75% from their 52-week high, and despite having a regulatory-approved nuclear reactor design, the lack of actual customers has diminished market confidence, prompting investors to exercise caution.
- Technological Advantages and Risks: The company's small modular reactor design incorporates modern safety features and can be manufactured in factories for easy transport; however, until a first sale is completed, these advantages remain theoretical, increasing investment risks.
- Potential Customer Collaborations: NuScale is working with foreign power companies and has agreements with U.S. firms for potential SMR sales, although no concrete sales have materialized yet, indicating existing market demand that could lead to future opportunities.
- Government Support and Market Outlook: The U.S. government has expressed support for SMRs and provided funding; if NuScale can successfully sell its reactors, it could become an attractive investment amid rising electricity demand, but it still faces significant sales hurdles.
See More
Investment Opportunities in Nuclear Power
- Rising Nuclear Demand: Electricity demand is increasing due to the adoption of AI and electric vehicles, leading to a renaissance in nuclear power, with tech giants like Meta, Microsoft, and Google investing heavily to secure stable and sustainable energy supplies.
- NuScale Power's Outlook: NuScale Power's stock has fallen 75% from its 52-week high; while it has an approved design for small modular reactors, it has yet to finalize its first reactor sale and remains unprofitable, making its future growth reliant on the acceptance of SMRs in the market.
- Cameco's Market Position: Cameco has strengthened its role in the nuclear sector by acquiring a 50% stake in Westinghouse, and it anticipates that uranium demand will exceed supply by 2030, potentially driving up uranium prices and boosting its stock performance.
- Brookfield Renewable's Investment Strategy: Brookfield Renewable offers indirect exposure to nuclear power through its ownership of half of Westinghouse and a diversified portfolio of clean energy assets, while providing a high dividend yield of 4.5%, appealing to conservative investors and mitigating investment risks.
See More
Investment Opportunities in Small Modular Nuclear Reactors
- NuScale Power's Growth Prospects: NuScale Power has an approved design for its small modular reactors (SMRs), yet it has not finalized its first reactor sale, with shares down 75% from their 52-week high, indicating high risk as a startup; however, if SMRs gain traction, it could represent a long-term growth opportunity.
- Cameco's Market Performance: Recently acquiring a 50% stake in Westinghouse, Cameco, a fuel supplier for the nuclear industry, has seen its stock rise 175% over the past year, with expectations that uranium demand will exceed supply by 2030, potentially driving uranium prices higher and boosting company performance.
- Attractiveness of Brookfield Renewable: Brookfield Renewable owns the other half of Westinghouse and boasts a globally diversified portfolio of clean energy assets, offering a 4.5% attractive dividend yield, making it suitable for investors looking to gradually engage with nuclear energy.
- Diversity in Nuclear Investment: There is no single way to invest in nuclear power; NuScale Power appeals to aggressive growth investors, Cameco serves as a solid investment focused on uranium supply, while Brookfield Renewable offers a high-yield option for cautious investors.
See More
Nuclear Microreactor Market Expected to Exceed $6 Billion
- Market Growth Potential: The nuclear microreactor market is projected to grow from $850 million in 2025 to $6.8 billion by 2034, indicating strong long-term expansion driven by AI data center and energy security demands.
- Surging Energy Demand: Global data center electricity consumption is expected to double from 460 TWh in 2022 to over 1,000 TWh by 2026, prompting operators to seek long-term, carbon-free power sources to meet increasing compute capacity needs.
- Innovative Demonstration Project: Elemental Nuclear's collaboration with the University of Utah marks the first time the TRIGA reactor will power a mini AI data center, representing a significant milestone for small nuclear reactors addressing the energy needs of the AI industry.
- Technological Advancements: The project utilizes a cold helium-based power generation system, showcasing how small nuclear platforms can integrate with advanced power conversion technologies to meet modern computing energy demands and accelerate nuclear technology innovation.
See More
Nuclear Microreactor Market Poised for $6 Billion Growth Driven by AI and Energy Security
- Market Growth Potential: The nuclear microreactor market is projected to expand from approximately $850 million in 2025 to $6.8 billion by 2034, indicating strong long-term growth driven by the demands of AI data centers and energy security priorities.
- Surging Energy Demand: Global data center electricity consumption is expected to double from 460 TWh in 2022 to over 1,000 TWh by 2026, prompting major tech companies to invest hundreds of billions to expand computing capacity, thereby accelerating the demand for nuclear microreactors.
- Innovative Demonstration Project: Elemental Nuclear's collaboration with the University of Utah marks the first time the TRIGA reactor will generate electricity for a mini AI data center, with a modest output of 2-3 kW, symbolizing the potential of small nuclear reactors to meet the energy needs of the AI industry.
- Platform for Innovation: Elemental Nuclear aims to leverage the global network of TRIGA research reactors as a rapid innovation platform, tapping into the expertise of over 1,500 nuclear scientists and engineers to advance next-generation nuclear technologies.
See More
NuScale Power Faces Market Challenges Despite Regulatory Approval
- 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.
See More
