Renewed Interest in Small Modular Reactors for AI Power Needs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 29 2026
0mins
Should l Buy SMR?
Source: Fool
- Rise of Small Modular Reactors: Small Modular Reactors (SMRs) are gaining attention for their smaller footprint, capable of providing stable power near data centers to meet the energy demands of artificial intelligence, presenting significant market potential.
- NuScale's Leading Position: NuScale Power has been awarded a $400 million grant by the Tennessee Valley Authority (TVA) to deploy 6 gigawatts of SMR across seven states, becoming the only SMR approved by the U.S. Nuclear Regulatory Commission, with commercial operations targeted for early next decade.
- Revenue Volatility Risk: Although NuScale generated $63.1 million in revenue from its project with Romania's RoPower, its revenue has declined quarter-over-quarter in 2025, highlighting a heavy reliance on investor funding and government projects, which increases investment risk.
- Market Outlook and Investment Considerations: While NuScale is at the forefront of SMR technology, the instability of its revenue necessitates cautious investment, positioning it as a speculative play for the next few years, especially before the technology is commercialized.
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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: 12.790
Low
18.50
Averages
32.77
High
60.00
Current: 12.790
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.
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- Massive Market Opportunity: NuScale Power is developing small modular reactors (SMRs) with a potential market value of $10 trillion, which could position it as one of the most significant energy companies of the century if successful.
- Slow Sales Progress: Despite having an SMR design approved by the Nuclear Regulatory Commission, NuScale has yet to finalize any SMR projects for customers and is unlikely to generate meaningful revenue for the next two years, posing a challenge to its business model.
- Diverse Customer Base: NuScale's SMR technology not only targets utilities but also offers on-site power generation solutions for data centers, industrial clients, and governments, thereby broadening its potential customer base.
- Significant Investment Risks: Although NuScale's technology holds great promise, the lack of actual sales and profitability has led to a stock decline of over 75% since October 2025, necessitating cautious risk assessment by investors.
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- Grid Solution Innovation: Unlike traditional methods, NuScale plans to build SMR plants near data centers and industrial hubs for on-site power generation, enhancing energy independence and flexibility for its customers.
- Diverse Customer Base: While NuScale's SMR technology could attract various clients, including the Tennessee Valley Authority, it currently lacks any firm sales agreements and is not expected to generate significant revenue for the next two years.
- Technical Risks and Market Challenges: As the only U.S. company with an SMR design approved by the Nuclear Regulatory Commission, NuScale faces the risk of unproven technology and uncertainty regarding market acceptance of its first project, which could impact future profitability.
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- Technological Advantage: The application of Small Modular Reactor (SMR) technology allows these companies to build nuclear plants at lower costs and faster speeds, likely attracting more data center operators seeking reliable energy solutions, thereby driving business growth.
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- Upcoming Earnings Report: The quarterly earnings report expected on May 7 is anticipated to reveal important updates on the project pipeline and potential customer signings, which are crucial for investors to gauge the company's future trajectory.
- Industry Conference Presentation: On June 2, NuScale Power will present at a conference hosted by the Royal Bank of Canada, allowing management to showcase the overall business strategy rather than just specific financial figures, which could enhance investor confidence.
- Long-Term Growth Drivers: Management needs to focus on the rising electricity demand and the challenges posed by the current grid's limitations, especially in negotiations with five tier-one hyperscalers, as successfully converting these potential sales streams will be critical.
See More
NuScale Power Faces Investor Sentiment Challenges
- Stock Volatility: NuScale Power's shares have declined by 22% since the beginning of 2026, despite a 40% rebound in the past two weeks, indicating market caution regarding the long-term potential of its small modular reactor technology.
- Upcoming Earnings Report: The latest quarterly earnings report, expected on May 7, is anticipated to reveal updates on the project pipeline and the conversion of potential customers into signed partnerships, which is crucial for improving market sentiment.
- Industry Conference Presentation: On June 2, NuScale Power will present at a conference hosted by the Royal Bank of Canada, allowing management to emphasize long-term growth drivers, particularly the rising demand for electricity, without delving into specific reported numbers.
- Strategic Partnership Progress: The CEO disclosed that the company has signed five exploratory NDAs with
See More
NuScale Power Faces $10 Trillion Market Opportunity
- Massive Market Opportunity: NuScale Power is developing small modular reactors (SMRs) with a potential market value of $10 trillion, which could position it as one of the most significant energy companies of the century if successful.
- Slow Sales Progress: Despite having an SMR design approved by the Nuclear Regulatory Commission, NuScale has yet to finalize any SMR projects for customers and is unlikely to generate meaningful revenue for the next two years, posing a challenge to its business model.
- Diverse Customer Base: NuScale's SMR technology not only targets utilities but also offers on-site power generation solutions for data centers, industrial clients, and governments, thereby broadening its potential customer base.
- Significant Investment Risks: Although NuScale's technology holds great promise, the lack of actual sales and profitability has led to a stock decline of over 75% since October 2025, necessitating cautious risk assessment by investors.
See More
NuScale Power: Potential and Risks of Small Modular Reactors
- Massive Market Opportunity: NuScale Power aims to revolutionize the nuclear energy sector by mass-producing small modular reactors (SMRs), potentially tapping into a $10 trillion market, despite its stock plummeting over 75% since 2025.
- Grid Solution Innovation: Unlike traditional methods, NuScale plans to build SMR plants near data centers and industrial hubs for on-site power generation, enhancing energy independence and flexibility for its customers.
- Diverse Customer Base: While NuScale's SMR technology could attract various clients, including the Tennessee Valley Authority, it currently lacks any firm sales agreements and is not expected to generate significant revenue for the next two years.
- Technical Risks and Market Challenges: As the only U.S. company with an SMR design approved by the Nuclear Regulatory Commission, NuScale faces the risk of unproven technology and uncertainty regarding market acceptance of its first project, which could impact future profitability.
See More
NASDAQ 100 Pre-Market Activity Overview
- Market Performance: The NASDAQ 100 Pre-Market Indicator rose by 99.53 points to 26,689.87, indicating positive market sentiment that may attract more investor interest.
- Active Stocks: Local Bounti Corporation (LOCL) increased by $1.0305 in pre-market trading, with a volume of 35,128,203 shares, indicating a significant uptick in the company's market activity.
- ETF Performance: Direxion Daily TSLA Bull 2X ETF (TSLL) rose by $0.2 to $13.49, representing a 107.86% increase from its 52-week low, showcasing strong investor confidence in Tesla.
- Earnings Forecast: Intel Corporation (INTC) is scheduled to report earnings on April 23, 2026, with a consensus EPS forecast of -$0.11, reflecting a 2% increase over the previous year, indicating cautious optimism about its future performance.
See More
Nuclear Stocks Show Huge Upside Potential for Long-Term Investors
- Market Recovery Signal: Both Oklo and NuScale have seen their stock prices surge over 30% in recent months, despite earlier declines of over 40% this year, indicating a growing market confidence in the nuclear sector's recovery.
- AI Demand Boost: With an expected $7 trillion investment in data center construction globally, nuclear companies like Oklo and NuScale may become key energy suppliers for the emerging AI industry, addressing the urgent need for renewable energy and enhancing their market value.
- Technological Advantage: The application of Small Modular Reactor (SMR) technology allows these companies to build nuclear plants at lower costs and faster speeds, likely attracting more data center operators seeking reliable energy solutions, thereby driving business growth.
- Long-Term Investment Outlook: Although Bank of America forecasts significant ramp-up in SMR capacity won't occur until 2035, Oklo and NuScale's combined market cap remains under $20 billion, suggesting a potential tenfold growth opportunity for investors willing to hold long-term.
See More
NuScale Power Faces Major Investment Opportunities Ahead
- Stock Price Fluctuation: NuScale Power's shares have declined by 22% since the beginning of 2026, despite a 40% rebound over the past two weeks, indicating market caution regarding the long-term potential of its small modular reactor technology.
- Upcoming Earnings Report: The quarterly earnings report expected on May 7 is anticipated to reveal important updates on the project pipeline and potential customer signings, which are crucial for investors to gauge the company's future trajectory.
- Industry Conference Presentation: On June 2, NuScale Power will present at a conference hosted by the Royal Bank of Canada, allowing management to showcase the overall business strategy rather than just specific financial figures, which could enhance investor confidence.
- Long-Term Growth Drivers: Management needs to focus on the rising electricity demand and the challenges posed by the current grid's limitations, especially in negotiations with five tier-one hyperscalers, as successfully converting these potential sales streams will be critical.
See More
NuScale Power Faces Investor Sentiment Challenges
- Stock Volatility: NuScale Power's shares have declined by 22% since the beginning of 2026, despite a 40% rebound in the past two weeks, indicating market caution regarding the long-term potential of its small modular reactor technology.
- Upcoming Earnings Report: The latest quarterly earnings report, expected on May 7, is anticipated to reveal updates on the project pipeline and the conversion of potential customers into signed partnerships, which is crucial for improving market sentiment.
- Industry Conference Presentation: On June 2, NuScale Power will present at a conference hosted by the Royal Bank of Canada, allowing management to emphasize long-term growth drivers, particularly the rising demand for electricity, without delving into specific reported numbers.
- Strategic Partnership Progress: The CEO disclosed that the company has signed five exploratory NDAs with
See More
