NuScale Power Shares Drop After TD Cowen Downgrade
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 19 2025
0mins
Should l Buy SMR?
Source: Yahoo Finance
NuScale Power Corp shares fell 5.01% as the stock hit a 5-day low amid broader market declines, with the Nasdaq-100 down 1.63% and the S&P 500 down 1.13%.
The decline follows a downgrade by TD Cowen analyst Marc Bianchi, who changed NuScale's rating from buy to hold. This downgrade raised concerns about the company's future prospects, particularly regarding the Nuclearelectrica project's potential delays, which could significantly impact revenue growth and profitability. The analyst's outlook suggests that the project risks may be transferred to NuScale, further eroding market confidence in the company's commercial potential.
The implications of this downgrade are significant, as it not only reflects immediate market sentiment but also highlights the challenges NuScale faces in securing future orders and achieving profitability. Investors are likely to remain cautious as they await further developments regarding the Nuclearelectrica project and the company's overall strategy in the nuclear energy sector.
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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: 12.160
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.
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- 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.
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- 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.
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See More
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- 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.
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See More
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- 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
Framatome and NuScale Expand Partnership for Fuel Fabrication
- Partnership Expansion: Framatome and NuScale Power Corporation have expanded their longstanding partnership to include European fuel fabrication facilities, planning to supply fuel for NuScale's U.S. small modular reactor (SMR) technology over the next five years, indicating a proactive response to the growing nuclear energy market demand.
- Increased Fuel Production Capacity: The Richland facility is set to be authorized to produce at least 444 fuel assemblies, with deliveries expected as early as 2030, reflecting the growing momentum in the nuclear energy sector and rising demand for baseload electricity, further solidifying Framatome's leadership in the nuclear fuel industry.
- Technological Advantages: The NuFUEL-HTP2 fuel design incorporates Framatome's proven HTP fuel and spacer grid technology, ensuring low pressure drop and robust mechanical strength, thereby enhancing fuel performance reliability to meet high standards for global customers.
- Market Outlook: With over 55 years of manufacturing experience in North America and 50 years in Europe, Framatome's facilities are well-positioned to provide safer and more economical low-carbon energy solutions, supporting the global energy transition as nuclear technology continues to advance.
See More
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- 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
