NuScale Power Faces Challenges Amid Market Weakness
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 23 2024
0mins
Should l Buy SMR?
Source: Coinmarketcap
NuScale Power Corp's shares rose by 5.02% as it crossed above the 5-day SMA, despite the broader market decline with the Nasdaq-100 down 0.21% and the S&P 500 down 0.04%.
The company is currently facing significant challenges in securing its first reactor sale, which has led to a 75% drop from its 52-week high. Although NuScale's small modular reactor (SMR) design has received regulatory approval and boasts modern safety features, the absence of actual customers has diminished market confidence. The company is actively pursuing potential agreements with foreign and U.S. firms, but without concrete sales, its business model remains vulnerable. The U.S. government's support for SMRs could provide future opportunities if NuScale can successfully sell its reactors.
Investors are advised to remain cautious as the company navigates these hurdles. While the stock's recent rise may suggest optimism, the lack of sales and ongoing market challenges highlight the risks involved in investing in NuScale Power at this time.
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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: 12.180
Low
18.50
Averages
32.77
High
60.00
Current: 12.180
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.
AI-Driven Nuclear Energy Investment Opportunities
- Massive Market Potential: According to McKinsey's report, global spending on data centers is projected to reach $7 trillion by 2030, highlighting the urgent demand for computing power in the AI sector, thus creating significant market opportunities for energy companies.
- Strategic Advantage of Oklo: Oklo's business model focuses on small modular reactors (SMRs) that can provide reliable baseload electricity to data centers, particularly in remote areas, with its stock rising approximately 200% over the past year, underscoring its importance in meeting AI energy demands.
- NuScale's Competitive Strategy: With a market capitalization of just $4.3 billion, NuScale Power is focused on developing a 6-gigawatt SMR system in partnership with the Tennessee Valley Authority, and despite facing competition from other SMR companies, its undervaluation may present an attractive opportunity for investors.
- Diversified Investment Portfolio: Investing in both Oklo and NuScale offers investors dual pathways to profit from the $7 trillion data center boom, making it particularly important to diversify risk in an uncertain market environment.
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
AI-Driven Nuclear Energy Investment Opportunities
- Massive Market Potential: According to McKinsey's report, global spending on data centers is projected to reach $7 trillion by 2030, highlighting the urgent demand for computing power in the AI sector, thus creating significant market opportunities for energy companies.
- Strategic Advantage of Oklo: Oklo's business model focuses on small modular reactors (SMRs) that can provide reliable baseload electricity to data centers, particularly in remote areas, with its stock rising approximately 200% over the past year, underscoring its importance in meeting AI energy demands.
- NuScale's Competitive Strategy: With a market capitalization of just $4.3 billion, NuScale Power is focused on developing a 6-gigawatt SMR system in partnership with the Tennessee Valley Authority, and despite facing competition from other SMR companies, its undervaluation may present an attractive opportunity for investors.
- Diversified Investment Portfolio: Investing in both Oklo and NuScale offers investors dual pathways to profit from the $7 trillion data center boom, making it particularly important to diversify risk in an uncertain market environment.
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
