AI's Demand for Energy Drives Nuclear ETFs to Record Levels
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 22 2025
0mins
Should l Buy SMR?
Source: Benzinga
Nuclear ETFs Surge: Nuclear-themed ETFs, such as the VanEck Uranium+Nuclear Energy ETF (NLR) and the Range Nuclear Renaissance Index ETF (NUKZ), have seen significant gains, with NLR reaching an all-time high and both ETFs up over 100% from their lows, reflecting a growing investor interest in nuclear energy's role in the AI revolution.
Market Potential and Policy Support: A Bank of America report highlights a potential $10 trillion market opportunity for nuclear energy by 2050, driven by increased demand for reliable energy sources. Policy support from the Trump administration and revised growth expectations from the International Atomic Energy Agency (IAEA) further bolster the sector's outlook.
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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: 11.700
Low
18.50
Averages
32.77
High
60.00
Current: 11.700
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: Opportunities and Risks in the Nuclear Market
- Growing Market Demand: U.S. power demand is projected to increase by 3.5% annually from 2025 to 2040, with AI data centers adding strain to the grid, highlighting the urgent need for nuclear energy solutions.
- Investment Potential: Morgan Stanley forecasts that potential investments in the nuclear value chain will rise from $1.5 trillion to $2.2 trillion by 2050, indicating significant opportunities for infrastructure development, with NuScale holding a unique early-mover advantage as the only company with approved SMR technology by the U.S. Nuclear Regulatory Commission.
- Technology and Patents: NuScale has 788 patents pending or granted across 21 countries, and while it has yet to build commercial reactors, the production of 12 modules indicates progress, positioning the company for a significant role in the nuclear market.
- Financial Risks: Despite generating $31.5 million in revenue last year, this figure is negligible compared to its losses, and the stock has dropped over 37% in the past year, underscoring the high-risk nature of investing in NuScale, which requires careful consideration from investors.
See More
Investment Opportunities in Industrial Energy Trends
- Bloom Energy's Growth Potential: Bloom Energy's solid oxide fuel cell systems are projected to end 2025 with a $20 billion backlog, driving a 37% year-over-year revenue increase to $2 billion, highlighting its strong demand and market position in the rapidly growing clean electricity sector.
- Brookfield Renewable's Income Opportunity: Brookfield Renewable's partnership shares yield 5%, with plans to invest up to $10 billion in growth projects over the next five years aimed at achieving 5% to 9% distribution growth, appealing to income-seeking investors.
- NuScale Power's High-Risk, High-Return: NuScale Power is developing small modular nuclear reactors, and while it has yet to finalize its first sales, its technology could potentially revolutionize the nuclear power industry, attracting aggressive growth investors.
- Long-Term Power Demand Trends: As global demand for clean electricity continues to rise, companies like Bloom Energy, Brookfield Renewable, and NuScale Power offer diverse investment opportunities for different types of investors, reflecting the long-term growth potential in the industrial energy sector.
See More
Analysis of Investment Prospects in the U.S. Nuclear Energy Market
- Growing Nuclear Demand: President Trump signed an executive order aiming to quadruple nuclear capacity to 400 gigawatts by 2050, indicating strong policy support for nuclear energy, which is expected to drive investor interest in related stocks.
- Company Comparison: Constellation Energy, as the largest nuclear energy company in the U.S., operates over 22 gigawatts of reactor capacity and has secured 20-year electricity supply agreements with Microsoft and Meta, likely enhancing its market share and revenue stability by 2028.
- NuScale Power's Challenges: As an emerging company, NuScale has a market cap of less than $4 billion, and while its small modular reactor technology offers potential advantages, it is not expected to generate significant revenue before 2033, facing regulatory hurdles and dilution risks.
- Investment Return Expectations: Constellation Energy anticipates a 15% annual earnings growth over the next three to five years and plans to increase dividends by 10% annually, providing investors with expectations of stable long-term returns, while NuScale presents higher uncertainty and risks.
See More
Intensifying Competition in the U.S. Nuclear Energy Market
- Nuclear Market Outlook: NuScale Power is the only company in the U.S. with approved SMR design, and while its first commercial project is progressing, it is not expected to generate significant revenue before 2033, indicating substantial growth potential but also high risks.
- Traditional Nuclear Strength: Constellation Energy, the largest nuclear company in the U.S., boasts over 22 gigawatts of reactor capacity and has secured 20-year electricity supply agreements with Microsoft and Meta, expected to come online by 2028, showcasing its stable revenue base and market leadership.
- Investor Considerations: Although NuScale leads in small modular reactor design, its market cap is under $4 billion, and it faces risks of dilution and regulatory hurdles, prompting investors to carefully assess the risk-reward profile.
- Dividend Growth Potential: Constellation Energy offers a dividend yield of 0.6%, with management planning a 10% annual increase, suggesting long-term stable returns for investors, while NuScale has yet to achieve profitability, necessitating a careful evaluation of opportunity costs.
See More
Emerging Opportunities in Power Sector: Rise of Clean Energy
- Bloom Energy Growth: Bloom Energy's solid oxide fuel cell systems achieved $2 billion in revenue for 2025, marking a 37% increase, with a projected backlog of $20 billion by the end of 2025, highlighting strong demand and market position in the rapidly growing clean power sector.
- Brookfield Renewable Investment Potential: Brookfield Renewable owns a 50% stake in Westinghouse and plans to invest up to $10 billion in growth projects over the next five years, aiming for a 5% to 9% distribution growth, attracting investors interested in renewable energy and nuclear services.
- NuScale Power Technology Outlook: NuScale Power is developing small modular reactors, and while it has yet to finalize its first sale, its factory-built and modern safety technology could lower costs and enhance safety, potentially positioning it as a significant player in the nuclear industry if successful.
- Rising Electricity Demand: As global demand for clean electricity continues to rise, companies like Bloom Energy, Brookfield Renewable, and NuScale Power offer diverse investment opportunities for different types of investors, reflecting the long-term growth potential of the power sector.
See More
Increasing Competition in Space Investments and Nuclear Power Prospects
- Rising Competition in Space: Over the past decade, the space industry has rapidly evolved from just two companies to numerous startups, particularly with the rise of SpaceX, driving demand for low-cost rocket launches, and the global space economy is projected to grow to about $2 trillion by 2035, indicating significant investment potential.
- Market Saturation Risks: Despite the promising outlook for the space sector, competition in communications and imaging is overly saturated, with many new entrants facing survival challenges, particularly as the number of satellites increases, leading to limited market opportunities and potential profitability issues for some companies.
- Nuclear Investment Surge: The growing demand for sustainable energy has attracted substantial investment in the nuclear sector, especially in the development of small modular reactors (SMRs), although historically, nuclear projects often exceed budgets and face delays, leading investors to remain cautious about future prospects.
- Uncertain Profitability Models: In both the space and nuclear sectors, many startups are not yet profitable, prompting investors to focus on financial flexibility and long-term sustainability, especially when market demand and technology maturity remain unclear.
See More
NuScale Power: Opportunities and Risks in the Nuclear Market
- Growing Market Demand: U.S. power demand is projected to increase by 3.5% annually from 2025 to 2040, with AI data centers adding strain to the grid, highlighting the urgent need for nuclear energy solutions.
- Investment Potential: Morgan Stanley forecasts that potential investments in the nuclear value chain will rise from $1.5 trillion to $2.2 trillion by 2050, indicating significant opportunities for infrastructure development, with NuScale holding a unique early-mover advantage as the only company with approved SMR technology by the U.S. Nuclear Regulatory Commission.
- Technology and Patents: NuScale has 788 patents pending or granted across 21 countries, and while it has yet to build commercial reactors, the production of 12 modules indicates progress, positioning the company for a significant role in the nuclear market.
- Financial Risks: Despite generating $31.5 million in revenue last year, this figure is negligible compared to its losses, and the stock has dropped over 37% in the past year, underscoring the high-risk nature of investing in NuScale, which requires careful consideration from investors.
See More
Investment Opportunities in Industrial Energy Trends
- Bloom Energy's Growth Potential: Bloom Energy's solid oxide fuel cell systems are projected to end 2025 with a $20 billion backlog, driving a 37% year-over-year revenue increase to $2 billion, highlighting its strong demand and market position in the rapidly growing clean electricity sector.
- Brookfield Renewable's Income Opportunity: Brookfield Renewable's partnership shares yield 5%, with plans to invest up to $10 billion in growth projects over the next five years aimed at achieving 5% to 9% distribution growth, appealing to income-seeking investors.
- NuScale Power's High-Risk, High-Return: NuScale Power is developing small modular nuclear reactors, and while it has yet to finalize its first sales, its technology could potentially revolutionize the nuclear power industry, attracting aggressive growth investors.
- Long-Term Power Demand Trends: As global demand for clean electricity continues to rise, companies like Bloom Energy, Brookfield Renewable, and NuScale Power offer diverse investment opportunities for different types of investors, reflecting the long-term growth potential in the industrial energy sector.
See More
Analysis of Investment Prospects in the U.S. Nuclear Energy Market
- Growing Nuclear Demand: President Trump signed an executive order aiming to quadruple nuclear capacity to 400 gigawatts by 2050, indicating strong policy support for nuclear energy, which is expected to drive investor interest in related stocks.
- Company Comparison: Constellation Energy, as the largest nuclear energy company in the U.S., operates over 22 gigawatts of reactor capacity and has secured 20-year electricity supply agreements with Microsoft and Meta, likely enhancing its market share and revenue stability by 2028.
- NuScale Power's Challenges: As an emerging company, NuScale has a market cap of less than $4 billion, and while its small modular reactor technology offers potential advantages, it is not expected to generate significant revenue before 2033, facing regulatory hurdles and dilution risks.
- Investment Return Expectations: Constellation Energy anticipates a 15% annual earnings growth over the next three to five years and plans to increase dividends by 10% annually, providing investors with expectations of stable long-term returns, while NuScale presents higher uncertainty and risks.
See More
Intensifying Competition in the U.S. Nuclear Energy Market
- Nuclear Market Outlook: NuScale Power is the only company in the U.S. with approved SMR design, and while its first commercial project is progressing, it is not expected to generate significant revenue before 2033, indicating substantial growth potential but also high risks.
- Traditional Nuclear Strength: Constellation Energy, the largest nuclear company in the U.S., boasts over 22 gigawatts of reactor capacity and has secured 20-year electricity supply agreements with Microsoft and Meta, expected to come online by 2028, showcasing its stable revenue base and market leadership.
- Investor Considerations: Although NuScale leads in small modular reactor design, its market cap is under $4 billion, and it faces risks of dilution and regulatory hurdles, prompting investors to carefully assess the risk-reward profile.
- Dividend Growth Potential: Constellation Energy offers a dividend yield of 0.6%, with management planning a 10% annual increase, suggesting long-term stable returns for investors, while NuScale has yet to achieve profitability, necessitating a careful evaluation of opportunity costs.
See More
Emerging Opportunities in Power Sector: Rise of Clean Energy
- Bloom Energy Growth: Bloom Energy's solid oxide fuel cell systems achieved $2 billion in revenue for 2025, marking a 37% increase, with a projected backlog of $20 billion by the end of 2025, highlighting strong demand and market position in the rapidly growing clean power sector.
- Brookfield Renewable Investment Potential: Brookfield Renewable owns a 50% stake in Westinghouse and plans to invest up to $10 billion in growth projects over the next five years, aiming for a 5% to 9% distribution growth, attracting investors interested in renewable energy and nuclear services.
- NuScale Power Technology Outlook: NuScale Power is developing small modular reactors, and while it has yet to finalize its first sale, its factory-built and modern safety technology could lower costs and enhance safety, potentially positioning it as a significant player in the nuclear industry if successful.
- Rising Electricity Demand: As global demand for clean electricity continues to rise, companies like Bloom Energy, Brookfield Renewable, and NuScale Power offer diverse investment opportunities for different types of investors, reflecting the long-term growth potential of the power sector.
See More
Increasing Competition in Space Investments and Nuclear Power Prospects
- Rising Competition in Space: Over the past decade, the space industry has rapidly evolved from just two companies to numerous startups, particularly with the rise of SpaceX, driving demand for low-cost rocket launches, and the global space economy is projected to grow to about $2 trillion by 2035, indicating significant investment potential.
- Market Saturation Risks: Despite the promising outlook for the space sector, competition in communications and imaging is overly saturated, with many new entrants facing survival challenges, particularly as the number of satellites increases, leading to limited market opportunities and potential profitability issues for some companies.
- Nuclear Investment Surge: The growing demand for sustainable energy has attracted substantial investment in the nuclear sector, especially in the development of small modular reactors (SMRs), although historically, nuclear projects often exceed budgets and face delays, leading investors to remain cautious about future prospects.
- Uncertain Profitability Models: In both the space and nuclear sectors, many startups are not yet profitable, prompting investors to focus on financial flexibility and long-term sustainability, especially when market demand and technology maturity remain unclear.
See More
