Small Modular Reactor Stocks: Potential and Risks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 02 2026
0mins
Should l Buy SMR?
Source: Fool
- Market Potential: According to a report from Bank of America, the nuclear energy market is projected to become a $10 trillion opportunity, particularly as AI and data center electricity demands surge, with nuclear being rediscovered as a key solution to global power shortages.
- Investment Appeal: Despite Oklo and NuScale's stock prices falling over 10% and 20% respectively, their market valuations remain at approximately $10 billion and $4 billion, indicating attractive potential relative to their growth prospects, especially with the rapid development of small modular reactor technology.
- Slow Technological Progress: NuScale received SMR design approval from the U.S. Nuclear Regulatory Commission in 2023, but its first system is not expected to be operational until 2030, while Oklo's system is projected for late 2027 but lacks construction approval.
- Significant Financial Risks: With no revenue-generating customers, both Oklo and NuScale continue to incur quarterly losses, and over the past three years, both companies have seen their total outstanding shares increase by over 100%, indicating that investors must be cautious of shareholder dilution while pursuing growth.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy SMR?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on SMR
Wall Street analysts forecast SMR stock price to rise
13 Analyst Rating
5 Buy
6 Hold
2 Sell
Hold
Current: 12.160
Low
18.50
Averages
32.77
High
60.00
Current: 12.160
Low
18.50
Averages
32.77
High
60.00
About SMR
NuScale Power Corporation is a provider of proprietary advanced small modular reactor nuclear technology. The NuScale Power Module, the Company's SMR technology, is a small pressurized water reactor that can generate 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 governments, political subdivisions, state-owned enterprises, investor-owned utilities and other technology and industrial companies, both in domestic and international markets.
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 Advances Small Modular Reactor Development
- Nuclear Market Opportunity: Research from Bank of America estimates a $10 trillion market opportunity for nuclear energy, with NuScale Power's small modular reactor (SMR) technology at the forefront of this renaissance, indicating significant commercial potential.
- Unique Technology: NuScale is the only U.S. company with an SMR design approved by the Nuclear Regulatory Commission (NRC), and while it has yet to make its first sale, its unique technology positions it favorably in the future market.
- Project Progress: NuScale is advancing its potential first SMR project in Romania and is in talks with the Tennessee Valley Authority to deploy up to 6 gigawatts of SMR capacity across seven states, demonstrating its commitment to market expansion.
- Financial Challenges: Despite the promising technology outlook, NuScale is currently operating at a net loss and has not yet achieved profitability, with the lack of a first sale making its revenue growth timeline uncertain, prompting investors to assess risks carefully.
See More
NuScale Power Faces Class Action Lawsuit Over Securities Violations
- Class Action Initiated: NuScale Power Corporation is facing a class action lawsuit for alleged violations of the Securities Exchange Act during the trading period from May 13 to November 6, 2025, with investors needing to apply as lead plaintiffs by April 20, 2026, highlighting significant legal risks for the company.
- Soaring Financial Losses: In Q3 2025, NuScale's general and administrative expenses surged over 3,000% to $519 million, primarily due to a $495 million payment to ENTRA1, resulting in a quarterly net loss skyrocketing to $532 million, indicating a drastic deterioration in the company's financial health.
- Commercialization Partnership Risks: The lawsuit alleges that NuScale's reliance on ENTRA1 as an exclusive commercialization partner is problematic, given ENTRA1's lack of experience in nuclear energy projects, which could jeopardize NuScale's commercialization strategy and future market competitiveness.
- Stock Price Volatility: Following the financial disclosures on November 6, 2025, NuScale's stock price fell over 12% within two days, reflecting a decline in investor confidence regarding the company's financial transparency and management capabilities, potentially impacting future financing and market performance.
See More
NuScale Power Receives Positive News on SMR Project
- Nuclear Project Progress: RoPower's decision to advance its nuclear power plant project in collaboration with NuScale Power signifies a potential first customer for NuScale, although financing is still required to achieve construction goals.
- Financing Challenges: RoPower's investment decision is merely the first step, as it now needs to secure funding to support the power plant's construction; failure to do so could turn NuScale's good news into a disappointment.
- Business Model Uncertainty: Despite NuScale's estimated liquidity of approximately $1.3 billion by the end of 2025, its business model faces challenges, particularly as the delivery and scalability of SMRs remain untested.
- Technology Validation Critical: The delivery of NuScale Power's first SMR will be crucial for proving its technology; only upon successful validation can it attract more commercial customers, making it currently suitable for aggressive investors only.
See More
NuScale Power Partners with RoPower for Modular Reactors
- Partnership Progress: NuScale Power has partnered with Romanian power company RoPower to utilize six small modular reactors, marking a significant advancement in the European market for NuScale, although financing is still required to realize the project.
- Business Model Challenges: While NuScale Power's revenue primarily comes from services provided to Fluor, its true business model hinges on successfully delivering its first commercial SMR, which has yet to be achieved, posing significant profitability challenges.
- Financing Risks: RoPower's investment decision is merely the first step, as it now needs to secure sufficient funding to construct the nuclear power plant; failure to do so could turn NuScale's positive news into a setback, impacting its market outlook.
- Liquidity Status: As of the end of 2025, NuScale Power estimates it has approximately $1.3 billion in liquidity, indicating ample cash on hand, but the ability to execute and deliver the first SMR remains critical in determining whether future commercial customers will emerge.
See More
US Nuclear Energy Faces Increased Risks from Foreign Uranium Dependency
- Uranium Import Dependency: The United States currently imports approximately 95% of its uranium, leaving its nuclear fleet almost entirely reliant on foreign fuel, which heightens national security risks.
- Policy Support for Domestic Production: In January 2026, the White House formally designated uranium as a national security risk, paving the way for potential import restrictions, price floors, and direct federal support for domestic miners to strengthen the uranium supply chain.
- Eagle's Market Entry: Eagle Nuclear Energy Corp. began trading on NASDAQ in February 2026, marking its entry as a U.S.-focused uranium development company, with its flagship Aurora project considered the largest conventional uranium deposit in the U.S., containing 32.75 million pounds of indicated uranium.
- Investment Decisions in the Industry: Denison Mines announced a Final Investment Decision to proceed with the construction of the Phoenix uranium mine, with site preparation set to begin in March 2026 and first production targeted for mid-2028, signaling a new era for Canadian uranium mining.
See More
U.S. Uranium Supply Security Policy Upgrade
- Uranium Import Dependency: The U.S. currently imports about 95% of its uranium, making its nuclear fleet almost entirely reliant on foreign fuel, significantly raising national security risks and prompting a policy shift to support domestic uranium production.
- Policy Support: In January 2026, the White House issued a Section 232 proclamation designating uranium as a national security risk, paving the way for import restrictions, price floors, and direct federal support for domestic miners, which is expected to enhance the domestic uranium supply chain.
- Project Advancements: Eagle Nuclear Energy Corp. announced its membership in the Uranium Producers of America, highlighting its commitment to strengthening U.S. uranium supply, while its Aurora project boasts 32.75 million pounds of uranium reserves, indicating significant potential in the domestic market.
- Industry Investment: Centrus Energy was awarded $900 million by the DOE to expand its uranium enrichment facility, expected to create 1,000 construction jobs and 300 new operating roles, further revitalizing the U.S. nuclear fuel supply chain.
See More
NuScale Power Advances Small Modular Reactor Development
- Nuclear Market Opportunity: Research from Bank of America estimates a $10 trillion market opportunity for nuclear energy, with NuScale Power's small modular reactor (SMR) technology at the forefront of this renaissance, indicating significant commercial potential.
- Unique Technology: NuScale is the only U.S. company with an SMR design approved by the Nuclear Regulatory Commission (NRC), and while it has yet to make its first sale, its unique technology positions it favorably in the future market.
- Project Progress: NuScale is advancing its potential first SMR project in Romania and is in talks with the Tennessee Valley Authority to deploy up to 6 gigawatts of SMR capacity across seven states, demonstrating its commitment to market expansion.
- Financial Challenges: Despite the promising technology outlook, NuScale is currently operating at a net loss and has not yet achieved profitability, with the lack of a first sale making its revenue growth timeline uncertain, prompting investors to assess risks carefully.
See More
NuScale Power Faces Class Action Lawsuit Over Securities Violations
- Class Action Initiated: NuScale Power Corporation is facing a class action lawsuit for alleged violations of the Securities Exchange Act during the trading period from May 13 to November 6, 2025, with investors needing to apply as lead plaintiffs by April 20, 2026, highlighting significant legal risks for the company.
- Soaring Financial Losses: In Q3 2025, NuScale's general and administrative expenses surged over 3,000% to $519 million, primarily due to a $495 million payment to ENTRA1, resulting in a quarterly net loss skyrocketing to $532 million, indicating a drastic deterioration in the company's financial health.
- Commercialization Partnership Risks: The lawsuit alleges that NuScale's reliance on ENTRA1 as an exclusive commercialization partner is problematic, given ENTRA1's lack of experience in nuclear energy projects, which could jeopardize NuScale's commercialization strategy and future market competitiveness.
- Stock Price Volatility: Following the financial disclosures on November 6, 2025, NuScale's stock price fell over 12% within two days, reflecting a decline in investor confidence regarding the company's financial transparency and management capabilities, potentially impacting future financing and market performance.
See More
NuScale Power Receives Positive News on SMR Project
- Nuclear Project Progress: RoPower's decision to advance its nuclear power plant project in collaboration with NuScale Power signifies a potential first customer for NuScale, although financing is still required to achieve construction goals.
- Financing Challenges: RoPower's investment decision is merely the first step, as it now needs to secure funding to support the power plant's construction; failure to do so could turn NuScale's good news into a disappointment.
- Business Model Uncertainty: Despite NuScale's estimated liquidity of approximately $1.3 billion by the end of 2025, its business model faces challenges, particularly as the delivery and scalability of SMRs remain untested.
- Technology Validation Critical: The delivery of NuScale Power's first SMR will be crucial for proving its technology; only upon successful validation can it attract more commercial customers, making it currently suitable for aggressive investors only.
See More
NuScale Power Partners with RoPower for Modular Reactors
- Partnership Progress: NuScale Power has partnered with Romanian power company RoPower to utilize six small modular reactors, marking a significant advancement in the European market for NuScale, although financing is still required to realize the project.
- Business Model Challenges: While NuScale Power's revenue primarily comes from services provided to Fluor, its true business model hinges on successfully delivering its first commercial SMR, which has yet to be achieved, posing significant profitability challenges.
- Financing Risks: RoPower's investment decision is merely the first step, as it now needs to secure sufficient funding to construct the nuclear power plant; failure to do so could turn NuScale's positive news into a setback, impacting its market outlook.
- Liquidity Status: As of the end of 2025, NuScale Power estimates it has approximately $1.3 billion in liquidity, indicating ample cash on hand, but the ability to execute and deliver the first SMR remains critical in determining whether future commercial customers will emerge.
See More
US Nuclear Energy Faces Increased Risks from Foreign Uranium Dependency
- Uranium Import Dependency: The United States currently imports approximately 95% of its uranium, leaving its nuclear fleet almost entirely reliant on foreign fuel, which heightens national security risks.
- Policy Support for Domestic Production: In January 2026, the White House formally designated uranium as a national security risk, paving the way for potential import restrictions, price floors, and direct federal support for domestic miners to strengthen the uranium supply chain.
- Eagle's Market Entry: Eagle Nuclear Energy Corp. began trading on NASDAQ in February 2026, marking its entry as a U.S.-focused uranium development company, with its flagship Aurora project considered the largest conventional uranium deposit in the U.S., containing 32.75 million pounds of indicated uranium.
- Investment Decisions in the Industry: Denison Mines announced a Final Investment Decision to proceed with the construction of the Phoenix uranium mine, with site preparation set to begin in March 2026 and first production targeted for mid-2028, signaling a new era for Canadian uranium mining.
See More
U.S. Uranium Supply Security Policy Upgrade
- Uranium Import Dependency: The U.S. currently imports about 95% of its uranium, making its nuclear fleet almost entirely reliant on foreign fuel, significantly raising national security risks and prompting a policy shift to support domestic uranium production.
- Policy Support: In January 2026, the White House issued a Section 232 proclamation designating uranium as a national security risk, paving the way for import restrictions, price floors, and direct federal support for domestic miners, which is expected to enhance the domestic uranium supply chain.
- Project Advancements: Eagle Nuclear Energy Corp. announced its membership in the Uranium Producers of America, highlighting its commitment to strengthening U.S. uranium supply, while its Aurora project boasts 32.75 million pounds of uranium reserves, indicating significant potential in the domestic market.
- Industry Investment: Centrus Energy was awarded $900 million by the DOE to expand its uranium enrichment facility, expected to create 1,000 construction jobs and 300 new operating roles, further revitalizing the U.S. nuclear fuel supply chain.
See More
