NuScale and Oklo Compete in Nuclear Energy Market
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 06 2026
0mins
Should l Buy SMR?
Source: NASDAQ.COM
- Market Outlook: NuScale's upcoming nuclear plants in Romania and the U.S. could significantly boost sales, yet its stock has plunged nearly 80% since last year, indicating market concerns about its future growth potential.
- Technological Comparison: Oklo's microreactors offer greater flexibility for remote deployments and utilize cheaper metallic uranium fuel pellets, with expectations to generate $16 million in revenue by 2027, showcasing its competitive edge in the small nuclear market.
- Revenue Forecast Discrepancy: Analysts predict NuScale's revenue will rise from $31 million in 2025 to $287 million by 2028, although its first reactors won't come online until the early 2030s, indicating a reliance on front-end engineering for short-term income.
- Valuation Comparison: Oklo's market cap stands at $9.7 billion with projected sales over 600 times for 2027, while NuScale's market cap is $3.9 billion with a more attractive 19 times valuation for 2027 sales, highlighting the challenges both companies face in maintaining investor interest.
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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: 9.160
Low
18.50
Averages
32.77
High
60.00
Current: 9.160
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.
NuScale Power Faces Challenges and Opportunities
- Stock Price Decline: NuScale Power Corporation (NYSE:SMR) has seen its shares drop by 28% over the past year and 37% year-to-date, indicating a lack of market confidence in its small modular reactor technology, which could hinder its financing capabilities and future project advancements.
- Price Target Reduction: UBS lowered NuScale's price target from $20 to $13 on March 19 while maintaining a Neutral rating, citing factors such as capital deployment and project delays, which may diminish investor expectations for future growth.
- Market Commentary: Notable financial commentator Jim Cramer stated in January 2025 that NuScale might be years away from developing anything meaningful, labeling it as a “science project,” which could undermine investor confidence and decision-making regarding the company.
- Investment Potential Comparison: While NuScale is viewed as a potential investment, analysts believe that certain AI stocks offer greater upside potential and lower downside risk, which may lead to capital outflows from NuScale and affect its market performance.
See More
NuScale Power's Prospects in Small Modular Reactor Market
- Market Decline: NuScale Power's stock has plummeted over 75% in the last six months, with its price now below $10 and market cap around $3 billion, indicating a significant loss of investor confidence despite the company's potentially disruptive technology.
- Innovation Potential: As the first small modular reactor company approved by the Nuclear Regulatory Commission, NuScale's designs aim to reduce construction costs and footprint compared to traditional plants, which could facilitate a resurgence of nuclear energy deployment in the U.S., although high upfront costs remain a barrier.
- Project Collaboration Progress: NuScale has inked agreements with the Romanian government and the Tennessee Valley Authority to deploy its technology, with final approvals pending, suggesting the company is seeking to expand into international markets and potentially laying the groundwork for future growth.
- Policy Environment Impact: With a nuclear-friendly administration in the U.S., NuScale's shares could rebound, although significant risks persist, prompting investors to carefully evaluate opportunities in the small modular reactor sector.
See More
The Rise of Small Modular Reactors
- Market Volatility: NuScale Power's stock has plummeted over 75% in the past six months, dropping from a peak of over $50/share to below $10/share, resulting in a market cap decline from nearly $9 billion to just under $3 billion, reflecting waning investor confidence in nuclear stocks.
- Technological Progress: Despite challenges, NuScale has signed agreements with the Romanian government and the Tennessee Valley Authority to deploy its small modular reactor technology, although final approvals are still pending, indicating potential market opportunities in the nuclear sector.
- Industry Outlook: The rise of small modular reactors (SMRs) brings new hope to the nuclear industry, particularly with a nuclear-friendly administration in the U.S., suggesting that NuScale's stock could attract renewed investor interest, especially among risk-tolerant investors.
- Financial Metrics: NuScale's market capitalization stands at $3.1 billion with a gross margin of 33.84%, and while its stock remains highly volatile, its potential in the nuclear market continues to appeal to investors seeking high-risk, high-reward opportunities.
See More
NuScale Power Faces Class Action Lawsuit Over Securities Violations
- Class Action Initiation: NuScale Power Corporation is facing a class action lawsuit for alleged violations of the Securities Exchange Act of 1934 during the trading period from May 13 to November 6, 2025, with investors needing to apply by April 20, 2026, indicating significant legal risks for the company.
- Financial Loss Exposure: The lawsuit claims that NuScale's general and administrative expenses surged over 3,000% to $519 million in Q3, primarily due to a $495 million payment to ENTRA1, resulting in a quarterly net loss skyrocketing to $532 million, reflecting the company's fragile financial condition.
- Partnership Risk: The global commercialization partnership with ENTRA1 is under scrutiny due to ENTRA1's lack of significant project experience in nuclear energy, potentially exposing NuScale's commercialization strategy to substantial risks, which could undermine future market confidence.
- Stock Price Impact: Following the financial disclosures on November 6, 2025, NuScale's stock price dropped over 12% within two days, highlighting investor concerns about the company's future prospects, which may affect its ability to secure financing and maintain market competitiveness.
See More
AI Investment Expected to Reach $7 Trillion by 2030
- Global Investment Trend: McKinsey estimates that global capital expenditures on data center infrastructure will approach $7 trillion by 2030, a figure equivalent to the combined GDP of Japan and Germany, indicating a rapid escalation in corporate investment in AI technologies.
- AI Spending Growth in the U.S.: In the United States, AI-related capital expenditures account for about 5% of GDP and are growing at a high-single- to low-double-digit pace, with this growth trend expected to persist into the next decade, reflecting the increasing significance of AI in the economy.
- EV Market Competition: Tesla plans to significantly invest in AI within its 2026 capital expenditures, particularly in autonomous driving technology, with projections of tens of thousands of robotaxis by 2030, while Rivian is making AI investments at a relatively low valuation, showcasing its potential in the EV market.
- Nuclear Industry Renaissance: NuScale Power focuses on small modular reactor (SMR) technology, with U.S. electricity demand expected to grow by about 4% annually through 2030, and AI's contribution to electricity demand projected to rise from 4.3% to 11.7%, providing substantial market opportunities for the company.
See More
Analysis of Investment Potential in Artificial Intelligence
- AI Investment Trend: McKinsey estimates that global capital expenditures on data center infrastructure will approach $7 trillion by 2030, a figure equivalent to the combined GDP of Japan and Germany, highlighting the immense investment potential in the AI sector.
- Tesla's AI Strategy: Tesla plans to significantly invest in AI within its 2026 capital expenditures and has agreed to invest $2 billion in Elon Musk's AI startup xAI, indicating its commitment to autonomous driving technology, with expectations of tens of thousands of robotaxis on the roads by 2030.
- Rivian's Market Positioning: Despite Rivian's market cap being only a third of Tesla's and its sales multiple at 3 times, the company's heavy investment in AI and autonomy reveals its potential in the future EV market, although this may delay its profitability timeline.
- NuScale Power's Growth Opportunity: NuScale Power focuses on small modular reactor technology, with U.S. electricity demand expected to grow at 4% annually by 2030, and AI projected to account for 11.7% of electricity demand; if successful, its technology could tap into a market worth up to $10 trillion.
See More
NuScale Power Faces Challenges and Opportunities
- Stock Price Decline: NuScale Power Corporation (NYSE:SMR) has seen its shares drop by 28% over the past year and 37% year-to-date, indicating a lack of market confidence in its small modular reactor technology, which could hinder its financing capabilities and future project advancements.
- Price Target Reduction: UBS lowered NuScale's price target from $20 to $13 on March 19 while maintaining a Neutral rating, citing factors such as capital deployment and project delays, which may diminish investor expectations for future growth.
- Market Commentary: Notable financial commentator Jim Cramer stated in January 2025 that NuScale might be years away from developing anything meaningful, labeling it as a “science project,” which could undermine investor confidence and decision-making regarding the company.
- Investment Potential Comparison: While NuScale is viewed as a potential investment, analysts believe that certain AI stocks offer greater upside potential and lower downside risk, which may lead to capital outflows from NuScale and affect its market performance.
See More
NuScale Power's Prospects in Small Modular Reactor Market
- Market Decline: NuScale Power's stock has plummeted over 75% in the last six months, with its price now below $10 and market cap around $3 billion, indicating a significant loss of investor confidence despite the company's potentially disruptive technology.
- Innovation Potential: As the first small modular reactor company approved by the Nuclear Regulatory Commission, NuScale's designs aim to reduce construction costs and footprint compared to traditional plants, which could facilitate a resurgence of nuclear energy deployment in the U.S., although high upfront costs remain a barrier.
- Project Collaboration Progress: NuScale has inked agreements with the Romanian government and the Tennessee Valley Authority to deploy its technology, with final approvals pending, suggesting the company is seeking to expand into international markets and potentially laying the groundwork for future growth.
- Policy Environment Impact: With a nuclear-friendly administration in the U.S., NuScale's shares could rebound, although significant risks persist, prompting investors to carefully evaluate opportunities in the small modular reactor sector.
See More
The Rise of Small Modular Reactors
- Market Volatility: NuScale Power's stock has plummeted over 75% in the past six months, dropping from a peak of over $50/share to below $10/share, resulting in a market cap decline from nearly $9 billion to just under $3 billion, reflecting waning investor confidence in nuclear stocks.
- Technological Progress: Despite challenges, NuScale has signed agreements with the Romanian government and the Tennessee Valley Authority to deploy its small modular reactor technology, although final approvals are still pending, indicating potential market opportunities in the nuclear sector.
- Industry Outlook: The rise of small modular reactors (SMRs) brings new hope to the nuclear industry, particularly with a nuclear-friendly administration in the U.S., suggesting that NuScale's stock could attract renewed investor interest, especially among risk-tolerant investors.
- Financial Metrics: NuScale's market capitalization stands at $3.1 billion with a gross margin of 33.84%, and while its stock remains highly volatile, its potential in the nuclear market continues to appeal to investors seeking high-risk, high-reward opportunities.
See More
NuScale Power Faces Class Action Lawsuit Over Securities Violations
- Class Action Initiation: NuScale Power Corporation is facing a class action lawsuit for alleged violations of the Securities Exchange Act of 1934 during the trading period from May 13 to November 6, 2025, with investors needing to apply by April 20, 2026, indicating significant legal risks for the company.
- Financial Loss Exposure: The lawsuit claims that NuScale's general and administrative expenses surged over 3,000% to $519 million in Q3, primarily due to a $495 million payment to ENTRA1, resulting in a quarterly net loss skyrocketing to $532 million, reflecting the company's fragile financial condition.
- Partnership Risk: The global commercialization partnership with ENTRA1 is under scrutiny due to ENTRA1's lack of significant project experience in nuclear energy, potentially exposing NuScale's commercialization strategy to substantial risks, which could undermine future market confidence.
- Stock Price Impact: Following the financial disclosures on November 6, 2025, NuScale's stock price dropped over 12% within two days, highlighting investor concerns about the company's future prospects, which may affect its ability to secure financing and maintain market competitiveness.
See More
AI Investment Expected to Reach $7 Trillion by 2030
- Global Investment Trend: McKinsey estimates that global capital expenditures on data center infrastructure will approach $7 trillion by 2030, a figure equivalent to the combined GDP of Japan and Germany, indicating a rapid escalation in corporate investment in AI technologies.
- AI Spending Growth in the U.S.: In the United States, AI-related capital expenditures account for about 5% of GDP and are growing at a high-single- to low-double-digit pace, with this growth trend expected to persist into the next decade, reflecting the increasing significance of AI in the economy.
- EV Market Competition: Tesla plans to significantly invest in AI within its 2026 capital expenditures, particularly in autonomous driving technology, with projections of tens of thousands of robotaxis by 2030, while Rivian is making AI investments at a relatively low valuation, showcasing its potential in the EV market.
- Nuclear Industry Renaissance: NuScale Power focuses on small modular reactor (SMR) technology, with U.S. electricity demand expected to grow by about 4% annually through 2030, and AI's contribution to electricity demand projected to rise from 4.3% to 11.7%, providing substantial market opportunities for the company.
See More
Analysis of Investment Potential in Artificial Intelligence
- AI Investment Trend: McKinsey estimates that global capital expenditures on data center infrastructure will approach $7 trillion by 2030, a figure equivalent to the combined GDP of Japan and Germany, highlighting the immense investment potential in the AI sector.
- Tesla's AI Strategy: Tesla plans to significantly invest in AI within its 2026 capital expenditures and has agreed to invest $2 billion in Elon Musk's AI startup xAI, indicating its commitment to autonomous driving technology, with expectations of tens of thousands of robotaxis on the roads by 2030.
- Rivian's Market Positioning: Despite Rivian's market cap being only a third of Tesla's and its sales multiple at 3 times, the company's heavy investment in AI and autonomy reveals its potential in the future EV market, although this may delay its profitability timeline.
- NuScale Power's Growth Opportunity: NuScale Power focuses on small modular reactor technology, with U.S. electricity demand expected to grow at 4% annually by 2030, and AI projected to account for 11.7% of electricity demand; if successful, its technology could tap into a market worth up to $10 trillion.
See More
