NuScale Power Stock Rises on Strong Market Potential
NuScale Power Corp's stock surged by 10.88% in pre-market trading, reaching a 20-day high, as investors reacted positively to the company's growth prospects in the small modular reactor market.
This increase is attributed to the significant market potential for NuScale Power's SMR technology, which is projected to expand at a CAGR of 42.3% from 2024 to 2035. Despite challenges such as slow project progress and strategic difficulties, the optimistic revenue forecasts and the company's unique position in the nuclear sector have bolstered investor confidence, suggesting a potential shift in market sentiment.
The implications of this price movement indicate a growing interest in nuclear energy solutions, particularly as the U.S. government focuses on reducing regulatory hurdles for nuclear plant deployment. Investors are keenly watching NuScale's developments, especially as the company aims for substantial revenue growth in the coming years.
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- Stock Surge: Oklo's stock rose 5.6% today, extending Friday's 14.4% gain, reflecting investor confidence despite the absence of positive news, indicating strong market interest.
- DOE Award: The U.S. Department of Energy awarded over $19 million to five companies for nuclear fuel recycling research, with Oklo receiving funding to study radioactive materials in hot liquid salt, which is expected to enhance its technology development.
- Recycling Facility: Oklo is developing the first nuclear fuel recycling facility in the U.S. in Tennessee, aimed at converting used nuclear fuel into reusable reactor fuel, thereby improving sustainability in nuclear energy.
- Industry Outlook: As a leader in the nuclear energy renaissance, Oklo's innovative approach to recycling distinguishes it from competitors, although investors should carefully assess its long-term investment potential.
- Significant Stock Surge: NuScale Power's stock jumped 23.4% in January, primarily driven by political support and an analyst upgrade, reflecting strong market interest in small modular reactor (SMR) technology.
- Policy Driving Nuclear Development: On January 5, the U.S. House Energy Subcommittee held hearings to explore the Trump administration's nuclear acceleration roadmap, aiming for three experimental reactors operational by July 2026, indicating a newfound urgency in the nuclear sector.
- Analyst Upgrade Boost: On January 9, Bank of America upgraded NuScale from 'Underperform' to 'Neutral' with a $28 price target, highlighting its licensing agreement with the Tennessee Valley Authority and the advantages of its light-water reactor design.
- AI Demand Impacting Stock: Despite NuScale's promising technology, concerns raised by Microsoft's earnings regarding the pace of AI infrastructure spending could negatively affect NuScale's stock performance, particularly if AI demand diminishes.
- NuScale Power Struggles: NuScale Power's stock has declined approximately 30% over the past year, although it rebounded over 20% since early 2026; however, concerns arose after major investor Fluor sold its stake and the company missed earnings expectations, undermining confidence in its technological promises.
- Oklo's Strong Momentum: Oklo's stock skyrocketed in 2025 despite significant volatility, and its partnership with Meta has provided substantial market credibility, positioning it for continued strong growth into 2026.
- Financial Comparison: Oklo boasts around $1.2 billion in cash and marketable securities, significantly outpacing NuScale, which relies on limited engineering revenue and has yet to achieve profitability, thus facing greater financial pressure.
- Technological Development Paths: While NuScale is further along in technology development, it must transition from engineering revenue to actual contract deployment, whereas Oklo is gaining market recognition through partnerships with hyperscalers, potentially making it the winner in the next decade.
- Market Recovery: Following a decade-long slump post-Fukushima, the nuclear energy market is rebounding due to rising power demands and AI market expansion, with global nuclear capacity projected to increase by 2.6 times by 2050.
- Cameco's Growth Potential: As the world's second-largest uranium miner, Cameco's uranium price has surged from $18 per pound in 2016 to $94, with expectations to reach $100, prompting the company to restart idled mines to meet demand; analysts forecast revenue and EPS growth of 9% and 91%, respectively, from 2024 to 2027.
- NuScale's Innovation: NuScale's small modular reactors (SMRs) are designed for deployment in areas unsuitable for conventional reactors; while still in the front-end engineering phase, a contract with the Tennessee Valley Authority will facilitate expansion before 2032.
- Investment Value: Despite Cameco's P/E ratio of 69 and NuScale's P/S ratio of 37, both companies' strategic investments and growing market demand may support their high valuations, positioning them as key players in the future of nuclear energy.
- Stock Rebound: Fluor's stock surged 16.6% in January 2026 after a nearly 20% decline in 2025, indicating a rebound in investor confidence, particularly due to the growth in its business backlog.
- Growing Backlog: As of Q3 2023, Fluor's Urban Solutions segment had a backlog exceeding $20 billion, representing about 75% of the company's total backlog, highlighting its significant market share in fast-growing sectors.
- Long-Term Project Outlook: Fluor anticipates approximately $90 billion in new project awards over the next several years, with earnings from these projects not expected until at least 2027, laying a solid foundation for long-term growth.
- Investment Return Potential: Fluor's investment in NuScale Power yielded over $400 million, strengthening its financial position and allowing a focus on core operations, which is expected to drive future business growth.
AI Growth and Energy Demand: The narrative around artificial intelligence (AI) has shifted from processing power to the need for reliable electrical power, as tech giants adapt to ensure their services remain online amidst increasing demand for AI capabilities.
Nuclear Energy's Rising Importance: Companies like Oracle and Meta are investing heavily in nuclear energy, recognizing it as a crucial, scalable solution to meet the energy demands of AI technologies, moving beyond traditional energy sources.
Investment Trends and Market Dynamics: Oracle's plan to raise $50 billion for nuclear reactor construction highlights a significant capital shift in the tech sector, indicating that nuclear energy is becoming foundational to the technology stack rather than just a commodity.
Regulatory Changes and Future Outlook: Recent regulatory shifts are expediting the deployment of nuclear energy projects, which could lead to a more stable and efficient energy supply for tech companies, ultimately benefiting investors as the demand for AI computing power continues to grow.











