NuScale Power Shares Plummet Amid Red Flags
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 hours ago
0mins
Source: Fool
- Stock Price Collapse: NuScale Power's shares have plummeted over 80% from above $50 last fall to the current price of $10.99, significantly undermining investor confidence and likely prompting many to adopt a wait-and-see approach rather than investing now.
- Market Capitalization Risks: With a market cap of $3.7 billion, NuScale faces increasing shareholder dilution risks, especially as the company seeks to double its authorized share count, which could further diminish existing shareholders' returns.
- Slow Commercialization Progress: Although NuScale has received certification from the U.S. Nuclear Regulatory Commission, its commercialization efforts remain incomplete, and the company is burning cash at an accelerating rate, creating uncertainty around its future profitability and market competitiveness.
- Intensifying Competition: As better-capitalized SMR companies emerge, NuScale risks losing market share, compounded by the fact that its major investor, Fluor, has begun selling off its stake, raising further concerns about the company's future prospects.
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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: 11.690
Low
18.50
Averages
32.77
High
60.00
Current: 11.690
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
NuScale Power Shares Plummet Amid Red Flags
- Stock Price Collapse: NuScale Power's shares have plummeted over 80% from above $50 last fall to the current price of $10.99, significantly undermining investor confidence and likely prompting many to adopt a wait-and-see approach rather than investing now.
- Market Capitalization Risks: With a market cap of $3.7 billion, NuScale faces increasing shareholder dilution risks, especially as the company seeks to double its authorized share count, which could further diminish existing shareholders' returns.
- Slow Commercialization Progress: Although NuScale has received certification from the U.S. Nuclear Regulatory Commission, its commercialization efforts remain incomplete, and the company is burning cash at an accelerating rate, creating uncertainty around its future profitability and market competitiveness.
- Intensifying Competition: As better-capitalized SMR companies emerge, NuScale risks losing market share, compounded by the fact that its major investor, Fluor, has begun selling off its stake, raising further concerns about the company's future prospects.
See More
NuScale Power Shares Plunge 80% Amid Concerns
- Significant Stock Decline: NuScale Power's shares have plummeted from over $50 last fall to just above $10 today, representing an 80% drop, indicating a substantial loss of investor confidence in its growth potential and necessitating careful evaluation of its investment appeal.
- Delayed Commercialization: Although NuScale has received certification from the U.S. Nuclear Regulatory Commission for its small modular reactor design, it has yet to fully enter the commercialization phase, and its partnership with Entra1 Energy has not significantly advanced market deployment, raising concerns about its future profitability.
- Shareholder Dilution Risk: The recent application to double its authorized share count poses a significant risk of shareholder dilution, and while there is optimism about the potential for a 5x to 10x increase in market cap, actual returns for shareholders may be adversely affected by this dilution.
- Intensifying Competition and Funding Issues: As better-capitalized small modular reactor companies emerge, NuScale faces increasing competitive pressure, compounded by its accelerating cash burn rate, leaving uncertainty about whether it will need to raise additional funds to support expansion and cover initial losses.
See More
NuScale Power Faces Class Action Lawsuit
- Lawsuit Background: Pomerantz LLP has announced a class action lawsuit against NuScale Power, alleging that the company and certain executives engaged in securities fraud or other unlawful business practices, with investors needing to apply as Lead Plaintiff by April 20, 2026.
- Financial Crisis: 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 Energy LLC, resulting in a quarterly net loss skyrocketing to $532 million.
- Market Reaction: Following the financial turmoil, NuScale's stock price fell by $7.57, or 19.97%, over the next two trading sessions, closing at $30.34 per share, reflecting investor concerns about the company's outlook.
- Future Outlook: NuScale's CEO indicated that the agreement with TVA could involve as many as 72 NPMs, suggesting that milestone payments to ENTRA1 could exceed $3 billion, raising investor skepticism about ENTRA1's capability to operate the proposed facilities.
See More
NuScale Power Faces Class Action Lawsuit
- Lawsuit Background: Berger Montague PC has filed a class action lawsuit against NuScale Power Corporation on behalf of investors who acquired securities between May 13 and November 6, 2025, alleging the company made false or misleading statements during this period.
- Financial Crisis Revealed: The lawsuit claims that NuScale's general and administrative expenses surged over 3,000% to $519 million in Q3 2025, primarily due to a $495 million payment to ENTRA1, resulting in a net loss of $532 million for the quarter.
- Stock Price Reaction: Following the financial disclosures on November 6, 2025, NuScale Class A shares fell more than 12% over two days, dropping from $32.46 to $28.43 per share, indicating significant market concerns regarding the company's financial health.
- Commercial Partnership Risks: The lawsuit highlights that NuScale's exclusive commercialization partner, ENTRA1, lacks meaningful experience in nuclear power projects, and the commercialization strategy is exposed to undisclosed risks of failure, delays, and regulatory challenges, which could severely impact future growth.
See More
Nuclear Startup Oklo Clears Key Regulatory Hurdles
- Regulatory Progress: Nuclear startup Oklo has begun construction of its first nuclear facility at the Idaho National Laboratory under the U.S. Department of Energy's Reactor Pilot Program, expected to generate 75 megawatts of clean power by late 2027, highlighting its potential in the small modular reactor space.
- Safety Design Agreement: Oklo recently received approval from the DOE for its Nuclear Safety Design Agreement and has moved to the review phase of its Preliminary Documented Safety Analysis, indicating an increased likelihood of completing regulatory processes before the 2027 launch, boosting investor confidence.
- Market Opportunity: NuScale Power is partnering with Ebara Elliott Energy to test a high-temperature steam compressor powered by its SMRs, which, if successful, could provide efficient process heat for petrochemical plants, potentially opening a massive new market for nuclear applications.
- Stable Investment: In contrast to startups, Duke Energy, the second-largest U.S. utility with a $100 billion market cap and decades of operational experience, offers a stable 3.3% dividend, making it a suitable choice for investors seeking reliable returns, showcasing the diversity in nuclear energy investments.
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
NuScale Power Shares Plummet Amid Red Flags
- Stock Price Collapse: NuScale Power's shares have plummeted over 80% from above $50 last fall to the current price of $10.99, significantly undermining investor confidence and likely prompting many to adopt a wait-and-see approach rather than investing now.
- Market Capitalization Risks: With a market cap of $3.7 billion, NuScale faces increasing shareholder dilution risks, especially as the company seeks to double its authorized share count, which could further diminish existing shareholders' returns.
- Slow Commercialization Progress: Although NuScale has received certification from the U.S. Nuclear Regulatory Commission, its commercialization efforts remain incomplete, and the company is burning cash at an accelerating rate, creating uncertainty around its future profitability and market competitiveness.
- Intensifying Competition: As better-capitalized SMR companies emerge, NuScale risks losing market share, compounded by the fact that its major investor, Fluor, has begun selling off its stake, raising further concerns about the company's future prospects.
See More
NuScale Power Shares Plunge 80% Amid Concerns
- Significant Stock Decline: NuScale Power's shares have plummeted from over $50 last fall to just above $10 today, representing an 80% drop, indicating a substantial loss of investor confidence in its growth potential and necessitating careful evaluation of its investment appeal.
- Delayed Commercialization: Although NuScale has received certification from the U.S. Nuclear Regulatory Commission for its small modular reactor design, it has yet to fully enter the commercialization phase, and its partnership with Entra1 Energy has not significantly advanced market deployment, raising concerns about its future profitability.
- Shareholder Dilution Risk: The recent application to double its authorized share count poses a significant risk of shareholder dilution, and while there is optimism about the potential for a 5x to 10x increase in market cap, actual returns for shareholders may be adversely affected by this dilution.
- Intensifying Competition and Funding Issues: As better-capitalized small modular reactor companies emerge, NuScale faces increasing competitive pressure, compounded by its accelerating cash burn rate, leaving uncertainty about whether it will need to raise additional funds to support expansion and cover initial losses.
See More
NuScale Power Faces Class Action Lawsuit
- Lawsuit Background: Pomerantz LLP has announced a class action lawsuit against NuScale Power, alleging that the company and certain executives engaged in securities fraud or other unlawful business practices, with investors needing to apply as Lead Plaintiff by April 20, 2026.
- Financial Crisis: 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 Energy LLC, resulting in a quarterly net loss skyrocketing to $532 million.
- Market Reaction: Following the financial turmoil, NuScale's stock price fell by $7.57, or 19.97%, over the next two trading sessions, closing at $30.34 per share, reflecting investor concerns about the company's outlook.
- Future Outlook: NuScale's CEO indicated that the agreement with TVA could involve as many as 72 NPMs, suggesting that milestone payments to ENTRA1 could exceed $3 billion, raising investor skepticism about ENTRA1's capability to operate the proposed facilities.
See More
NuScale Power Faces Class Action Lawsuit
- Lawsuit Background: Berger Montague PC has filed a class action lawsuit against NuScale Power Corporation on behalf of investors who acquired securities between May 13 and November 6, 2025, alleging the company made false or misleading statements during this period.
- Financial Crisis Revealed: The lawsuit claims that NuScale's general and administrative expenses surged over 3,000% to $519 million in Q3 2025, primarily due to a $495 million payment to ENTRA1, resulting in a net loss of $532 million for the quarter.
- Stock Price Reaction: Following the financial disclosures on November 6, 2025, NuScale Class A shares fell more than 12% over two days, dropping from $32.46 to $28.43 per share, indicating significant market concerns regarding the company's financial health.
- Commercial Partnership Risks: The lawsuit highlights that NuScale's exclusive commercialization partner, ENTRA1, lacks meaningful experience in nuclear power projects, and the commercialization strategy is exposed to undisclosed risks of failure, delays, and regulatory challenges, which could severely impact future growth.
See More
Nuclear Startup Oklo Clears Key Regulatory Hurdles
- Regulatory Progress: Nuclear startup Oklo has begun construction of its first nuclear facility at the Idaho National Laboratory under the U.S. Department of Energy's Reactor Pilot Program, expected to generate 75 megawatts of clean power by late 2027, highlighting its potential in the small modular reactor space.
- Safety Design Agreement: Oklo recently received approval from the DOE for its Nuclear Safety Design Agreement and has moved to the review phase of its Preliminary Documented Safety Analysis, indicating an increased likelihood of completing regulatory processes before the 2027 launch, boosting investor confidence.
- Market Opportunity: NuScale Power is partnering with Ebara Elliott Energy to test a high-temperature steam compressor powered by its SMRs, which, if successful, could provide efficient process heat for petrochemical plants, potentially opening a massive new market for nuclear applications.
- Stable Investment: In contrast to startups, Duke Energy, the second-largest U.S. utility with a $100 billion market cap and decades of operational experience, offers a stable 3.3% dividend, making it a suitable choice for investors seeking reliable returns, showcasing the diversity in nuclear energy investments.
See More
