The Promising Future of Small Modular Reactors
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy SMR?
Source: NASDAQ.COM
- Market Opportunity: NuScale Power's market cap is currently below $4 billion, yet it aims to chase a global market opportunity worth up to $10 trillion, indicating significant growth potential in the small modular reactor (SMR) sector.
- Competitive Landscape: Oklo's market cap hovers around $11 billion, nearly three times that of NuScale, and while both companies are pre-revenue, Oklo's premium valuation is largely attributed to the influence of its chairman, Sam Altman, reflecting investor confidence in its future development.
- Technology Application Differences: NuScale's SMR designs are primarily targeted at utility-scale deployments, capable of generating 6 gigawatts of power per project, whereas Oklo focuses on smaller applications suitable for specific customers like data centers, highlighting a significant divergence in market positioning between the two companies.
- Cautious Investment Advice: Although NuScale Power is considered a promising SMR stock, analysts have noted that it did not make the current list of top investment stocks, suggesting that investors should carefully assess its long-term investment 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: 13.570
Low
18.50
Averages
32.77
High
60.00
Current: 13.570
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 $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
NASDAQ 100 Pre-Market Activity Overview
- Market Performance: The NASDAQ 100 Pre-Market Indicator is down 61.73 points to 26,875.54, reflecting cautious market sentiment that may influence short-term investor decisions.
- Active Stocks: Direxion Daily TSLA Bull 2X ETF (TSLL) saw a trading volume of 16,366,582 shares, with a price drop of 0.8095 to $12.12, despite a 55.39% increase from its 52-week low, indicating ongoing market pressure.
- Nokia's New Contract: Nokia Corporation (NOK) shares rose by 0.97 to $10.83 with 11,265,799 shares traded, having secured a deal to deploy 4G and 5G networks in Indonesia, thereby enhancing its competitive position in the Asia-Pacific market.
- QuantumScape Short-Term Performance: QuantumScape Corporation (QS) shares increased by 2.1402 to $9.45, with a trading volume of 5,589,992 shares, and the current days to cover stands at 9.67 days, indicating cautious optimism regarding its future performance.
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Nuclear Stocks Surge on Space Reactor Prospects
- Space Reactor Opportunity: The U.S. government's plan to deploy nuclear reactors in orbit by 2028 and on the Moon by 2030 has led to a surge in nuclear stocks, with NuScale Power (NYSE: SMR) potentially positioned to win early contracts due to its small modular reactor (SMR) technology, indicating significant market potential.
- Market Outlook: According to Grand View Research, the global SMR market is projected to grow from $6.5 billion in 2025 to $10.6 billion by 2033; while the market size is limited in the short term, NuScale's technological advantages could yield substantial long-term returns.
- Patent Advantage: NuScale holds over 700 patents across 21 countries, and its SMR design is the only one approved by the U.S. Nuclear Regulatory Commission, giving it a competitive edge, even though it has yet to construct any commercial reactors.
- Investor Considerations: Despite NuScale's stock price dropping 70% over the past six months, the increasing demand for nuclear energy in data centers suggests significant future market opportunities, prompting investors to monitor policy changes and market developments closely.
See More
NuScale Power's Space Reactor Prospects Brighten
- Optimistic Market Outlook: The U.S. government's plan to send nuclear reactors into orbit by 2028 and deploy them on the Moon by 2030 presents potential contract opportunities for NuScale's SMR technology, despite its stock price having dropped 70% over the past six months.
- Clear Technological Advantage: NuScale holds the only SMR design approved by the U.S. Nuclear Regulatory Commission and has over 700 patents across 21 countries, providing it with an early competitive edge, although it has yet to build any commercial reactors.
- Market Size Projections: According to Grand View Research, the global SMR market is expected to grow from $6.5 billion in 2025 to $10.6 billion by 2033, while Precedence Research forecasts it will reach $8.1 billion by 2026 and $17.3 billion by 2035, indicating long-term growth potential.
- Investor Patience Required: Although the SMR market may develop slowly in the short term, NuScale could see significant upside in the future, especially as demand for nuclear energy in data centers increases, with nuclear expected to become a key power source in the U.S. by the 2030s.
See More
NuScale Power Shares Surge 16.28% Amid Nuclear Revival Speculation
- Significant Price Surge: NuScale Power's stock surged 16.28% to close at $13.57, reflecting market optimism regarding its potential in the upcoming nuclear revival, particularly highlighted by its undervalued position compared to Oklo.
- Volume Spike: Trading volume reached 54 million shares, nearly double the three-month average of 26.9 million, indicating a significant increase in investor interest, which may signal future capital inflows and heightened market attention.
- Positive Market Outlook: According to Bank of America analysts, the nuclear energy sector is experiencing a revival that could lead to a $10 trillion renaissance, with NuScale and Oklo positioned as key beneficiaries, despite NuScale's stock being 75% below last fall's highs, investors remain hopeful for successful project conversions.
- Upcoming Earnings Report: NuScale is set to release its Q1 earnings on May 7, with the market eager to see progress in project financing and implementation, which could further drive stock price increases and bolster investor confidence.
See More
Nuclear Energy Renaissance Creates Investment Opportunities
- Nuclear Market Potential: According to Bank of America, nuclear energy is undergoing a $10 trillion renaissance, driven by surging global electricity demand, which is projected to require an additional 7,000 TWh by 2030, exceeding the annual energy needs of the U.S. and EU combined, thus creating significant market opportunities for nuclear investments.
- AI-Driven Demand Growth: U.S. electricity demand is expected to rise by 4% annually from 2024 to 2030, with the AI sector's expansion driving a $700 billion buildout of data centers, increasing their share of U.S. power demand from 4.3% to 11.7%, further intensifying the need for nuclear energy.
- Advantages of SMRs: Companies like Oklo and NuScale Power focus on small modular reactors (SMRs), which offer benefits such as lower upfront costs, enhanced safety, and smaller footprints, making them ideal for co-location with AI data center infrastructure and aligning with future energy demand trends.
- Diversification Strategy: Despite Oklo and NuScale Power's combined market cap being under $20 billion, the potential upside compared to the $10 trillion nuclear opportunity is substantial, allowing investors to diversify their bets across both companies to capitalize on critical resource supply opportunities in the AI industry.
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
NASDAQ 100 Pre-Market Activity Overview
- Market Performance: The NASDAQ 100 Pre-Market Indicator is down 61.73 points to 26,875.54, reflecting cautious market sentiment that may influence short-term investor decisions.
- Active Stocks: Direxion Daily TSLA Bull 2X ETF (TSLL) saw a trading volume of 16,366,582 shares, with a price drop of 0.8095 to $12.12, despite a 55.39% increase from its 52-week low, indicating ongoing market pressure.
- Nokia's New Contract: Nokia Corporation (NOK) shares rose by 0.97 to $10.83 with 11,265,799 shares traded, having secured a deal to deploy 4G and 5G networks in Indonesia, thereby enhancing its competitive position in the Asia-Pacific market.
- QuantumScape Short-Term Performance: QuantumScape Corporation (QS) shares increased by 2.1402 to $9.45, with a trading volume of 5,589,992 shares, and the current days to cover stands at 9.67 days, indicating cautious optimism regarding its future performance.
See More
Nuclear Stocks Surge on Space Reactor Prospects
- Space Reactor Opportunity: The U.S. government's plan to deploy nuclear reactors in orbit by 2028 and on the Moon by 2030 has led to a surge in nuclear stocks, with NuScale Power (NYSE: SMR) potentially positioned to win early contracts due to its small modular reactor (SMR) technology, indicating significant market potential.
- Market Outlook: According to Grand View Research, the global SMR market is projected to grow from $6.5 billion in 2025 to $10.6 billion by 2033; while the market size is limited in the short term, NuScale's technological advantages could yield substantial long-term returns.
- Patent Advantage: NuScale holds over 700 patents across 21 countries, and its SMR design is the only one approved by the U.S. Nuclear Regulatory Commission, giving it a competitive edge, even though it has yet to construct any commercial reactors.
- Investor Considerations: Despite NuScale's stock price dropping 70% over the past six months, the increasing demand for nuclear energy in data centers suggests significant future market opportunities, prompting investors to monitor policy changes and market developments closely.
See More
NuScale Power's Space Reactor Prospects Brighten
- Optimistic Market Outlook: The U.S. government's plan to send nuclear reactors into orbit by 2028 and deploy them on the Moon by 2030 presents potential contract opportunities for NuScale's SMR technology, despite its stock price having dropped 70% over the past six months.
- Clear Technological Advantage: NuScale holds the only SMR design approved by the U.S. Nuclear Regulatory Commission and has over 700 patents across 21 countries, providing it with an early competitive edge, although it has yet to build any commercial reactors.
- Market Size Projections: According to Grand View Research, the global SMR market is expected to grow from $6.5 billion in 2025 to $10.6 billion by 2033, while Precedence Research forecasts it will reach $8.1 billion by 2026 and $17.3 billion by 2035, indicating long-term growth potential.
- Investor Patience Required: Although the SMR market may develop slowly in the short term, NuScale could see significant upside in the future, especially as demand for nuclear energy in data centers increases, with nuclear expected to become a key power source in the U.S. by the 2030s.
See More
NuScale Power Shares Surge 16.28% Amid Nuclear Revival Speculation
- Significant Price Surge: NuScale Power's stock surged 16.28% to close at $13.57, reflecting market optimism regarding its potential in the upcoming nuclear revival, particularly highlighted by its undervalued position compared to Oklo.
- Volume Spike: Trading volume reached 54 million shares, nearly double the three-month average of 26.9 million, indicating a significant increase in investor interest, which may signal future capital inflows and heightened market attention.
- Positive Market Outlook: According to Bank of America analysts, the nuclear energy sector is experiencing a revival that could lead to a $10 trillion renaissance, with NuScale and Oklo positioned as key beneficiaries, despite NuScale's stock being 75% below last fall's highs, investors remain hopeful for successful project conversions.
- Upcoming Earnings Report: NuScale is set to release its Q1 earnings on May 7, with the market eager to see progress in project financing and implementation, which could further drive stock price increases and bolster investor confidence.
See More
Nuclear Energy Renaissance Creates Investment Opportunities
- Nuclear Market Potential: According to Bank of America, nuclear energy is undergoing a $10 trillion renaissance, driven by surging global electricity demand, which is projected to require an additional 7,000 TWh by 2030, exceeding the annual energy needs of the U.S. and EU combined, thus creating significant market opportunities for nuclear investments.
- AI-Driven Demand Growth: U.S. electricity demand is expected to rise by 4% annually from 2024 to 2030, with the AI sector's expansion driving a $700 billion buildout of data centers, increasing their share of U.S. power demand from 4.3% to 11.7%, further intensifying the need for nuclear energy.
- Advantages of SMRs: Companies like Oklo and NuScale Power focus on small modular reactors (SMRs), which offer benefits such as lower upfront costs, enhanced safety, and smaller footprints, making them ideal for co-location with AI data center infrastructure and aligning with future energy demand trends.
- Diversification Strategy: Despite Oklo and NuScale Power's combined market cap being under $20 billion, the potential upside compared to the $10 trillion nuclear opportunity is substantial, allowing investors to diversify their bets across both companies to capitalize on critical resource supply opportunities in the AI industry.
See More
