Analysis of Small Modular Reactor Stock Pullback
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 27 2026
0mins
Should l Buy SMR?
Source: Fool
- Market Pullback Reasons: Since the beginning of 2024, NuScale Power's stock has surged over 400% and Oklo Inc's by nearly 600%, yet both have seen a nearly 20% decline in 2026, primarily due to market concerns regarding their sales pipeline execution capabilities, reflecting investor anxiety over short-term profitability.
- Feasibility Challenges: While small modular reactor technology is considered crucial for transitioning the global economy in the long term, research indicates that its high construction costs, slow build times, and significant risks may prevent it from playing a substantial role in replacing fossil fuels in the next 10-15 years, leading to diminished investor confidence.
- Project Delays: NuScale's key project in Romania, initially slated for deployment in 2030, has now been pushed to 2033, with analysts downgrading stock ratings due to rising execution and capital risks, further exacerbating market uncertainty.
- Capital Needs and Dilution: With market valuations of $10 billion for Oklo and just above $4 billion for NuScale, the lack of guaranteed large-scale deployment of these technologies remains a concern, and both companies will need to raise significantly more capital to meet contractual obligations, potentially leading to share dilution and increased investment risks.
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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: 10.260
Low
18.50
Averages
32.77
High
60.00
Current: 10.260
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's Small Modular Reactor Outlook
- Market Potential: NuScale anticipates that the global small modular reactor market could reach $5.2 billion by 2035, and if it maintains its first-mover advantage, it could generate billions in annual revenue over the next decade, highlighting its strategic significance in the nuclear energy sector.
- Revenue Growth Expectations: Analysts forecast NuScale's revenue to surge from $31 million in 2025 to $331 million by 2028, reflecting strong demand for its front-end engineering design and licensing deals, despite its current market cap of $3.2 billion and a high P/E ratio of 38.
- Technological Innovation Advantage: NuScale's small modular reactor design is highly modular and can be assembled on-site, reducing the costs and complexities of building a nuclear power plant, which has attracted investor interest and aligns with the global resurgence in nuclear energy demand.
- Investor Sentiment Volatility: Although NuScale's stock has plummeted 80% over the past six months, from a high of $53.43 last October to around $10, this pullback may present a buying opportunity for long-term investors, especially as its potential for reactor deployment remains unrealized.
See More
Class Action Reminder for Ostin Technology Group and NuScale Power
- Ostin Technology Group Lawsuit: Ostin Technology Group faces a class action lawsuit for alleged securities fraud, with charges against its CEO and financial advisor for orchestrating a scheme that netted over $110 million in illicit proceeds, resulting in shareholders losing over $950 million and a 94% drop in market value on June 26, 2025.
- Fraudulent Securities Offerings: Beginning in April 2025, Ostin's management transferred the majority of shares to co-conspirators through fraudulent securities offerings, causing the stock price to soar from $0.78 to $9.40, with market capitalization exceeding $1 billion, but this artificial inflation led to significant investor losses when the truth emerged.
- NuScale Power Lawsuit: NuScale Power is accused in a class action of failing to disclose that its partnership with ENTRA1 Energy LLC lacked substantial operational experience, exposing its commercialization strategy to significant risks, resulting in investor damages once the reality was revealed.
- Law Firm Involvement: Bragar Eagel & Squire, P.C. serves as the representative law firm, reminding investors to apply as lead plaintiffs before the deadlines to ensure their rights are protected.
See More
Multiple Companies Face Class Action Lawsuits
- PayPal Lawsuit Overview: During the period from February 2024 to February 2026, PayPal is accused of overstating its business execution capabilities, leading to investor misconceptions about the company's prospects, which is expected to negatively impact its stock price.
- NuScale Power Risk Disclosure: NuScale is charged with failing to disclose significant risks related to its commercialization strategy during the period from May to November 2025, which could undermine investor confidence in its nuclear projects and affect future financing capabilities.
- Corcept Therapeutics Regulatory Issues: From October 2024 to December 2025, Corcept is accused of not disclosing FDA concerns regarding the effectiveness assessment of its drug, which may lead to significant obstacles in future drug approvals, impacting company operations.
- Navan IPO Controversy: During its IPO in 2025, Navan is charged with failing to disclose a 39% increase in sales and marketing expenses, which could mislead investors about its financial health and affect its market performance.
See More
NuScale Power's Stock Plummets 80% from Record High
- Stock Price Decline: NuScale Power's stock has plummeted 80% from its record high of $53.43 per share last October to about $10 today, causing significant pain for investors who rushed in, yet it may present a buying opportunity for long-term investors.
- Innovative Design Advantage: NuScale's small modular reactors (SMRs), which received approval from the Nuclear Regulatory Commission, boast a 77 MW capacity and are designed for smaller power plants, reducing the costs and complexities associated with nuclear power plant construction, thereby attracting investor interest.
- Diverse Revenue Sources: Currently, NuScale generates revenue primarily through front-end engineering and design (FEED) studies for a 462 MW plant in Romania and has agreed to deploy up to 6 GW of SMR capacity across seven states for the Tennessee Valley Authority, although these projects won't come online until the early 2030s.
- Significant Market Potential: Analysts project NuScale's revenue to surge from $31 million in 2025 to $331 million in 2028, and if it achieves these estimates, it will still appear reasonably valued at ten times its 2028 sales, positioning it to capture a significant share of the global SMR market projected to be worth $5.2 billion by 2035.
See More
NuScale Power Faces Class Action Lawsuit for Securities Fraud
- Lawsuit Background: NuScale Power Corporation is facing a class action lawsuit for securities fraud, with allegations that the company and its executives misrepresented the capabilities of ENTRA1, leading to a 12.4% stock drop in November 2025.
- Stock Price Plunge: On November 6, 2025, NuScale reported a surge in general and administrative expenses from $17 million to $519 million, primarily due to a $495 million payment to ENTRA1, resulting in a $4.03 drop in stock price over two days, closing at $28.43.
- Legal Basis: The lawsuit is filed under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, with a lead plaintiff deadline of April 20, 2026, indicating strong investor concern regarding corporate governance.
- Reputation Damage: Analysts highlighted that ENTRA1 is a three-year-old company lacking significant project experience, and this revelation not only impacted NuScale's stock price but also poses potential negative implications for its future financing and partnerships.
See More
Nuclear Energy Market Resurgence and Investment Opportunities
- Growing Nuclear Demand: According to Bank of America research, U.S. electrical demand is projected to grow at an annual rate of 2.5% over the next decade, five times faster than the previous decade, highlighting the increasing importance of nuclear energy as a clean energy source.
- NuScale's Technological Progress: NuScale Power is developing small modular reactor technology, with each module generating 77 megawatts of electricity and capable of being deployed in clusters of up to 12 for a total output of 924 megawatts, although commercial deployment will take several years.
- BWX's Market Position: BWX Technologies serves as the sole provider of nuclear fuel for the U.S. Navy, with government contract revenue reaching $2.35 billion in 2025, accounting for 73.4% of total revenue, underscoring its critical role in national security.
- Investment Outlook Comparison: While NuScale Power shows potential in nuclear technology, BWX Technologies is viewed as a better investment due to its 50% backlog growth to $7.3 billion, indicating stronger long-term revenue visibility.
See More
NuScale's Small Modular Reactor Outlook
- Market Potential: NuScale anticipates that the global small modular reactor market could reach $5.2 billion by 2035, and if it maintains its first-mover advantage, it could generate billions in annual revenue over the next decade, highlighting its strategic significance in the nuclear energy sector.
- Revenue Growth Expectations: Analysts forecast NuScale's revenue to surge from $31 million in 2025 to $331 million by 2028, reflecting strong demand for its front-end engineering design and licensing deals, despite its current market cap of $3.2 billion and a high P/E ratio of 38.
- Technological Innovation Advantage: NuScale's small modular reactor design is highly modular and can be assembled on-site, reducing the costs and complexities of building a nuclear power plant, which has attracted investor interest and aligns with the global resurgence in nuclear energy demand.
- Investor Sentiment Volatility: Although NuScale's stock has plummeted 80% over the past six months, from a high of $53.43 last October to around $10, this pullback may present a buying opportunity for long-term investors, especially as its potential for reactor deployment remains unrealized.
See More
Class Action Reminder for Ostin Technology Group and NuScale Power
- Ostin Technology Group Lawsuit: Ostin Technology Group faces a class action lawsuit for alleged securities fraud, with charges against its CEO and financial advisor for orchestrating a scheme that netted over $110 million in illicit proceeds, resulting in shareholders losing over $950 million and a 94% drop in market value on June 26, 2025.
- Fraudulent Securities Offerings: Beginning in April 2025, Ostin's management transferred the majority of shares to co-conspirators through fraudulent securities offerings, causing the stock price to soar from $0.78 to $9.40, with market capitalization exceeding $1 billion, but this artificial inflation led to significant investor losses when the truth emerged.
- NuScale Power Lawsuit: NuScale Power is accused in a class action of failing to disclose that its partnership with ENTRA1 Energy LLC lacked substantial operational experience, exposing its commercialization strategy to significant risks, resulting in investor damages once the reality was revealed.
- Law Firm Involvement: Bragar Eagel & Squire, P.C. serves as the representative law firm, reminding investors to apply as lead plaintiffs before the deadlines to ensure their rights are protected.
See More
Multiple Companies Face Class Action Lawsuits
- PayPal Lawsuit Overview: During the period from February 2024 to February 2026, PayPal is accused of overstating its business execution capabilities, leading to investor misconceptions about the company's prospects, which is expected to negatively impact its stock price.
- NuScale Power Risk Disclosure: NuScale is charged with failing to disclose significant risks related to its commercialization strategy during the period from May to November 2025, which could undermine investor confidence in its nuclear projects and affect future financing capabilities.
- Corcept Therapeutics Regulatory Issues: From October 2024 to December 2025, Corcept is accused of not disclosing FDA concerns regarding the effectiveness assessment of its drug, which may lead to significant obstacles in future drug approvals, impacting company operations.
- Navan IPO Controversy: During its IPO in 2025, Navan is charged with failing to disclose a 39% increase in sales and marketing expenses, which could mislead investors about its financial health and affect its market performance.
See More
NuScale Power's Stock Plummets 80% from Record High
- Stock Price Decline: NuScale Power's stock has plummeted 80% from its record high of $53.43 per share last October to about $10 today, causing significant pain for investors who rushed in, yet it may present a buying opportunity for long-term investors.
- Innovative Design Advantage: NuScale's small modular reactors (SMRs), which received approval from the Nuclear Regulatory Commission, boast a 77 MW capacity and are designed for smaller power plants, reducing the costs and complexities associated with nuclear power plant construction, thereby attracting investor interest.
- Diverse Revenue Sources: Currently, NuScale generates revenue primarily through front-end engineering and design (FEED) studies for a 462 MW plant in Romania and has agreed to deploy up to 6 GW of SMR capacity across seven states for the Tennessee Valley Authority, although these projects won't come online until the early 2030s.
- Significant Market Potential: Analysts project NuScale's revenue to surge from $31 million in 2025 to $331 million in 2028, and if it achieves these estimates, it will still appear reasonably valued at ten times its 2028 sales, positioning it to capture a significant share of the global SMR market projected to be worth $5.2 billion by 2035.
See More
NuScale Power Faces Class Action Lawsuit for Securities Fraud
- Lawsuit Background: NuScale Power Corporation is facing a class action lawsuit for securities fraud, with allegations that the company and its executives misrepresented the capabilities of ENTRA1, leading to a 12.4% stock drop in November 2025.
- Stock Price Plunge: On November 6, 2025, NuScale reported a surge in general and administrative expenses from $17 million to $519 million, primarily due to a $495 million payment to ENTRA1, resulting in a $4.03 drop in stock price over two days, closing at $28.43.
- Legal Basis: The lawsuit is filed under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, with a lead plaintiff deadline of April 20, 2026, indicating strong investor concern regarding corporate governance.
- Reputation Damage: Analysts highlighted that ENTRA1 is a three-year-old company lacking significant project experience, and this revelation not only impacted NuScale's stock price but also poses potential negative implications for its future financing and partnerships.
See More
Nuclear Energy Market Resurgence and Investment Opportunities
- Growing Nuclear Demand: According to Bank of America research, U.S. electrical demand is projected to grow at an annual rate of 2.5% over the next decade, five times faster than the previous decade, highlighting the increasing importance of nuclear energy as a clean energy source.
- NuScale's Technological Progress: NuScale Power is developing small modular reactor technology, with each module generating 77 megawatts of electricity and capable of being deployed in clusters of up to 12 for a total output of 924 megawatts, although commercial deployment will take several years.
- BWX's Market Position: BWX Technologies serves as the sole provider of nuclear fuel for the U.S. Navy, with government contract revenue reaching $2.35 billion in 2025, accounting for 73.4% of total revenue, underscoring its critical role in national security.
- Investment Outlook Comparison: While NuScale Power shows potential in nuclear technology, BWX Technologies is viewed as a better investment due to its 50% backlog growth to $7.3 billion, indicating stronger long-term revenue visibility.
See More
