NuScale Power's Huge Potential in Nuclear Energy
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 36 minutes ago
0mins
Source: Fool
- Surging Nuclear Demand: Interest in nuclear energy is skyrocketing due to soaring energy demands from AI companies, with trillions expected to be spent on data center infrastructure in the coming years, thus driving the need for clean and reliable energy sources, which NuScale Power is well-positioned to fulfill.
- SMR Advantages: NuScale specializes in small modular reactors (SMRs) that are quicker and cheaper to build, allowing them to meet the rising energy demands of AI more immediately than conventional nuclear plants, thereby providing a significant competitive edge.
- Romanian Project Progress: In 2023, NuScale's 462-megawatt SMR project in Romania received a Final Investment Decision, marking the transition to implementation and replacing 600 megawatts of coal power with clean energy, which is pivotal for advancing the European nuclear industry.
- Optimistic Financing Outlook: Romania's energy minister indicated that the financing phase is expected to take about six months, suggesting that a government approval and financing announcement could occur by mid to late August, which would provide crucial support for NuScale's future growth.
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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: 11.330
Low
18.50
Averages
32.77
High
60.00
Current: 11.330
Low
18.50
Averages
32.77
High
60.00
About SMR
NuScale Power Corporation is a provider of proprietary advanced small modular reactor (SMR) nuclear technology. The NuScale Power Module, the Company's SMR technology, is a small pressurized water reactor that can generate approximately 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 domestic and international governments, utilities, state-owned enterprises and technology and industrial companies in need of carbon-free, reliable energy.
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's Huge Potential in Nuclear Energy
- Surging Nuclear Demand: Interest in nuclear energy is skyrocketing due to soaring energy demands from AI companies, with trillions expected to be spent on data center infrastructure in the coming years, thus driving the need for clean and reliable energy sources, which NuScale Power is well-positioned to fulfill.
- SMR Advantages: NuScale specializes in small modular reactors (SMRs) that are quicker and cheaper to build, allowing them to meet the rising energy demands of AI more immediately than conventional nuclear plants, thereby providing a significant competitive edge.
- Romanian Project Progress: In 2023, NuScale's 462-megawatt SMR project in Romania received a Final Investment Decision, marking the transition to implementation and replacing 600 megawatts of coal power with clean energy, which is pivotal for advancing the European nuclear industry.
- Optimistic Financing Outlook: Romania's energy minister indicated that the financing phase is expected to take about six months, suggesting that a government approval and financing announcement could occur by mid to late August, which would provide crucial support for NuScale's future growth.
See More
NuScale Power Accelerates Nuclear Projects Amid Rising Energy Demand
- Surging Nuclear Demand: With skyrocketing energy needs from AI companies, NuScale Power's stock shows significant potential, as trillions of dollars are expected to be spent on expanding data center infrastructure, thereby increasing demand for clean and reliable energy sources.
- SMR Advantages: NuScale specializes in small modular reactors (SMRs), which are quicker and cheaper to build, allowing for a more immediate response to the rising energy demands of AI compared to conventional nuclear power plants, thus providing a competitive edge.
- Romanian Project Progress: The Final Investment Decision for NuScale's 462-megawatt SMR project in Romania marks a transition to the implementation phase, aiming to replace 600 megawatts of coal power with clean energy, thereby advancing the European nuclear industry.
- Financing Timeline: Romania's energy minister indicated that the financing phase is expected to take about six months, suggesting that government approval and financing could be secured by late August, further propelling NuScale's project developments.
See More
Nuclear Market Revival: BWX Outshines NuScale
- Market Revival Trend: After a decade of stagnation following the 2011 Fukushima disaster, the nuclear energy market is experiencing a resurgence driven by the surging demand from AI and data centers, highlighting nuclear power's critical role in future energy structures.
- NuScale's Development Challenges: While NuScale's small modular reactors (SMRs) offer potential for building smaller nuclear plants in remote areas, their 77 MWe output is significantly lower than traditional reactors, and with commercial deployment not expected until 2030, its stock has plummeted over 50% in the past year.
- BWX's Growth Potential: As the only large-scale nuclear component producer in North America, BWX's year-end backlog grew 50% year-over-year to $7.3 billion, driven by strong demand for naval propulsion components and microreactors, with revenue and EPS projected to grow at CAGRs of 13% and 17% from 2025 to 2028.
- Investment Strategy Recommendation: Although NuScale may achieve larger growth in the future, current high Treasury yields and macroeconomic pressures make BWX, as a market leader with a robust business model, a more attractive investment in this uncertain market environment.
See More
Nuclear Market Revival: Comparing BWX and NuScale
- Market Revival Context: After a decade of stagnation following the 2011 Fukushima disaster, the nuclear energy market is experiencing a resurgence driven by the surging demand from artificial intelligence and data centers, rekindling interest in safer and more efficient reactors.
- NuScale's Development Status: NuScale focuses on small modular reactors (SMRs), with expectations that its first units won't be operational until 2030; analysts project revenue growth from $31.5 million in 2025 to $310.7 million by 2028, although profitability is expected to remain elusive for the foreseeable future.
- BWX's Market Advantage: As the only large-scale producer of nuclear components in North America, BWX's year-end backlog grew by 50% year-over-year to $7.3 billion, with revenue and EPS projected to grow at CAGRs of 13% and 17% from 2025 to 2028, underscoring its competitive strength in the nuclear sector.
- Investment Risk Assessment: While NuScale has significant growth potential, its market cap of $3.92 billion and trading at 13 times 2028 sales expose it to risks from competitors like BWX, leading investors to prefer BWX as a more stable investment amid high Treasury yields and macroeconomic uncertainties.
See More
Oklo Up 2% as Bank of America Reinstates Buy Rating with $80 Target
- Market Performance Boost: Oklo (OKLO) rose 2% in Friday's trading as Bank of America reinstated coverage with a Buy rating and an $80 price target, reflecting market confidence in its future growth prospects.
- Business Model Advantage: Oklo's differentiated 'build-own-operate' model positions it as a potential leader in the small modular reactor (SMR) sector, uniquely capturing project economics by owning its reactors and pursuing long-term contracts with energy-intensive customers like data centers.
- Strong Market Demand: The binding power agreement of approximately 1.2 GWe with Meta and a pipeline exceeding 14 GWe under non-binding customer letters indicate robust demand for Oklo's offerings, making it one of the largest players in the SMR market.
- Significant Competitive Edge: With the demonstration reactor on track and agreements with hyperscalers, BofA believes Oklo possesses a compelling advantage in capturing opportunities in this rapidly growing market.
See More
NuScale Power Faces Financing Challenges Amid Growth Potential
- Market Opportunities and Challenges: With a market cap of nearly $4 billion, NuScale Power faces financing difficulties, yet its nuclear technology aligns with the growing demand for AI, particularly in data center infrastructure, presenting significant growth potential.
- Project Financing Issues: The Romanian project is expected to cost between $6 billion and $7 billion, and despite receiving some government approvals, slow financing progress may delay the project's initiation and construction.
- Partner Support: NuScale's collaboration with ENTRA, which has secured $25 billion in government funding for a 6-gigawatt project in Tennessee, adds complexity as it remains unclear when these funds will be allocated to NuScale, increasing project uncertainty.
- Long-Term Investment Risks: Projects are not expected to achieve scalable power generation until 2030 or later, during which time NuScale will rely on debt and shareholder dilution to sustain operations, highlighting its high-risk investment nature.
See More
NuScale Power's Huge Potential in Nuclear Energy
- Surging Nuclear Demand: Interest in nuclear energy is skyrocketing due to soaring energy demands from AI companies, with trillions expected to be spent on data center infrastructure in the coming years, thus driving the need for clean and reliable energy sources, which NuScale Power is well-positioned to fulfill.
- SMR Advantages: NuScale specializes in small modular reactors (SMRs) that are quicker and cheaper to build, allowing them to meet the rising energy demands of AI more immediately than conventional nuclear plants, thereby providing a significant competitive edge.
- Romanian Project Progress: In 2023, NuScale's 462-megawatt SMR project in Romania received a Final Investment Decision, marking the transition to implementation and replacing 600 megawatts of coal power with clean energy, which is pivotal for advancing the European nuclear industry.
- Optimistic Financing Outlook: Romania's energy minister indicated that the financing phase is expected to take about six months, suggesting that a government approval and financing announcement could occur by mid to late August, which would provide crucial support for NuScale's future growth.
See More
NuScale Power Accelerates Nuclear Projects Amid Rising Energy Demand
- Surging Nuclear Demand: With skyrocketing energy needs from AI companies, NuScale Power's stock shows significant potential, as trillions of dollars are expected to be spent on expanding data center infrastructure, thereby increasing demand for clean and reliable energy sources.
- SMR Advantages: NuScale specializes in small modular reactors (SMRs), which are quicker and cheaper to build, allowing for a more immediate response to the rising energy demands of AI compared to conventional nuclear power plants, thus providing a competitive edge.
- Romanian Project Progress: The Final Investment Decision for NuScale's 462-megawatt SMR project in Romania marks a transition to the implementation phase, aiming to replace 600 megawatts of coal power with clean energy, thereby advancing the European nuclear industry.
- Financing Timeline: Romania's energy minister indicated that the financing phase is expected to take about six months, suggesting that government approval and financing could be secured by late August, further propelling NuScale's project developments.
See More
Nuclear Market Revival: BWX Outshines NuScale
- Market Revival Trend: After a decade of stagnation following the 2011 Fukushima disaster, the nuclear energy market is experiencing a resurgence driven by the surging demand from AI and data centers, highlighting nuclear power's critical role in future energy structures.
- NuScale's Development Challenges: While NuScale's small modular reactors (SMRs) offer potential for building smaller nuclear plants in remote areas, their 77 MWe output is significantly lower than traditional reactors, and with commercial deployment not expected until 2030, its stock has plummeted over 50% in the past year.
- BWX's Growth Potential: As the only large-scale nuclear component producer in North America, BWX's year-end backlog grew 50% year-over-year to $7.3 billion, driven by strong demand for naval propulsion components and microreactors, with revenue and EPS projected to grow at CAGRs of 13% and 17% from 2025 to 2028.
- Investment Strategy Recommendation: Although NuScale may achieve larger growth in the future, current high Treasury yields and macroeconomic pressures make BWX, as a market leader with a robust business model, a more attractive investment in this uncertain market environment.
See More
Nuclear Market Revival: Comparing BWX and NuScale
- Market Revival Context: After a decade of stagnation following the 2011 Fukushima disaster, the nuclear energy market is experiencing a resurgence driven by the surging demand from artificial intelligence and data centers, rekindling interest in safer and more efficient reactors.
- NuScale's Development Status: NuScale focuses on small modular reactors (SMRs), with expectations that its first units won't be operational until 2030; analysts project revenue growth from $31.5 million in 2025 to $310.7 million by 2028, although profitability is expected to remain elusive for the foreseeable future.
- BWX's Market Advantage: As the only large-scale producer of nuclear components in North America, BWX's year-end backlog grew by 50% year-over-year to $7.3 billion, with revenue and EPS projected to grow at CAGRs of 13% and 17% from 2025 to 2028, underscoring its competitive strength in the nuclear sector.
- Investment Risk Assessment: While NuScale has significant growth potential, its market cap of $3.92 billion and trading at 13 times 2028 sales expose it to risks from competitors like BWX, leading investors to prefer BWX as a more stable investment amid high Treasury yields and macroeconomic uncertainties.
See More
Oklo Up 2% as Bank of America Reinstates Buy Rating with $80 Target
- Market Performance Boost: Oklo (OKLO) rose 2% in Friday's trading as Bank of America reinstated coverage with a Buy rating and an $80 price target, reflecting market confidence in its future growth prospects.
- Business Model Advantage: Oklo's differentiated 'build-own-operate' model positions it as a potential leader in the small modular reactor (SMR) sector, uniquely capturing project economics by owning its reactors and pursuing long-term contracts with energy-intensive customers like data centers.
- Strong Market Demand: The binding power agreement of approximately 1.2 GWe with Meta and a pipeline exceeding 14 GWe under non-binding customer letters indicate robust demand for Oklo's offerings, making it one of the largest players in the SMR market.
- Significant Competitive Edge: With the demonstration reactor on track and agreements with hyperscalers, BofA believes Oklo possesses a compelling advantage in capturing opportunities in this rapidly growing market.
See More
NuScale Power Faces Financing Challenges Amid Growth Potential
- Market Opportunities and Challenges: With a market cap of nearly $4 billion, NuScale Power faces financing difficulties, yet its nuclear technology aligns with the growing demand for AI, particularly in data center infrastructure, presenting significant growth potential.
- Project Financing Issues: The Romanian project is expected to cost between $6 billion and $7 billion, and despite receiving some government approvals, slow financing progress may delay the project's initiation and construction.
- Partner Support: NuScale's collaboration with ENTRA, which has secured $25 billion in government funding for a 6-gigawatt project in Tennessee, adds complexity as it remains unclear when these funds will be allocated to NuScale, increasing project uncertainty.
- Long-Term Investment Risks: Projects are not expected to achieve scalable power generation until 2030 or later, during which time NuScale will rely on debt and shareholder dilution to sustain operations, highlighting its high-risk investment nature.
See More
