NuScale Power's Nuclear Renaissance and Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy SMR?
Source: Fool
- Surging Market Demand: The global electricity demand is skyrocketing due to the rapid growth of artificial intelligence, positioning NuScale Power as a key player in the small modular reactor (SMR) sector; however, despite its stock soaring from $2.50 in late 2023 to $60 last year, it has since fallen below $15, indicating market volatility.
- Capital Cost Challenges: The traditional nuclear power sector faces massive upfront capital costs, requiring billions for large plants, while NuScale's modular design allows for manufacturing at lower electricity needs and scaling up, yet it still relies on support from governments and large corporations.
- Regulatory Approval Advantage: NuScale Power has secured approvals from the Nuclear Regulatory Commission (NRC) for some of its designs, giving it a competitive edge in the global nuclear market; however, the company has failed to win any contracts for actual reactor construction, highlighting a lack of market acceptance.
- Concerning Financial Status: With nearly zero revenue and significant cash burn, coupled with a rapidly increasing share count, NuScale Power's inability to secure substantial contracts during what is arguably the best time in history for the power sector serves as a serious warning signal for investors.
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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: 14.640
Low
18.50
Averages
32.77
High
60.00
Current: 14.640
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's Nuclear Renaissance and Challenges
- Surging Market Demand: The global electricity demand is skyrocketing due to the rapid growth of artificial intelligence, positioning NuScale Power as a key player in the small modular reactor (SMR) sector; however, despite its stock soaring from $2.50 in late 2023 to $60 last year, it has since fallen below $15, indicating market volatility.
- Capital Cost Challenges: The traditional nuclear power sector faces massive upfront capital costs, requiring billions for large plants, while NuScale's modular design allows for manufacturing at lower electricity needs and scaling up, yet it still relies on support from governments and large corporations.
- Regulatory Approval Advantage: NuScale Power has secured approvals from the Nuclear Regulatory Commission (NRC) for some of its designs, giving it a competitive edge in the global nuclear market; however, the company has failed to win any contracts for actual reactor construction, highlighting a lack of market acceptance.
- Concerning Financial Status: With nearly zero revenue and significant cash burn, coupled with a rapidly increasing share count, NuScale Power's inability to secure substantial contracts during what is arguably the best time in history for the power sector serves as a serious warning signal for investors.
See More
NuScale Power Class Action Lawsuit Announcement
- Class Action Initiation: NuScale Power Corporation faces allegations of failing to disclose significant risks associated with its partnership with ENTRA1 during the period from May 13, 2025, to November 6, 2025, leading to investor losses, with a deadline of April 20, 2026, for investors to apply as lead plaintiffs.
- Financial Loss Disclosure: 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, resulting in a quarterly net loss skyrocketing to $532 million, up from $46 million in the previous year.
- Severe Market Reaction: Following the financial disclosures on November 6, 2025, NuScale's stock price plummeted over 12% within two days, indicating a significant loss of investor confidence in its commercialization strategy and raising concerns about future prospects.
- Legal Representation Information: Robbins Geller Rudman & Dowd LLP is offering legal support and encouraging investors who purchased NuScale stock during the class period to participate, highlighting their extensive experience and successful track record in securities fraud cases.
See More
NuScale Power Faces Class Action Lawsuit for Securities Fraud
- Lawsuit Background: Bleichmar Fonti & Auld LLP has filed a class action lawsuit against NuScale Power and its executives for securities fraud, resulting in a stock price drop of over 12.4% in November 2025.
- Financial Mismanagement: NuScale's general and administrative expenses surged from $17 million to $519 million in Q3 2025, with $495 million paid to ENTRA1, indicating significant financial mismanagement that could undermine investor confidence.
- Partnership Issues: The partnership with ENTRA1 is under scrutiny as it allegedly has no significant experience in building or operating nuclear projects, reflecting NuScale's lack of due diligence in partner selection, which may harm its market reputation.
- Stock Price Impact: Following the lawsuit announcement, NuScale's stock fell from $32.46 to $28.43, a loss of over $4, indicating market concerns about the company's future and potential investor withdrawals.
See More
NuScale Power's Small Modular Reactor Prospects
- Market Leadership: NuScale Power is the only U.S. company with NRC design approval for small modular reactors, yet its stock price around $14 reflects challenges in achieving profitability, indicating the fragility of its market leadership.
- Technology Deployment Progress: The company has agreed to deploy its technology for the Tennessee Valley Authority and a Romanian power plant project, but it has yet to secure any firm sales, highlighting the slow pace of its commercialization efforts.
- Market Opportunity: According to Goldman Sachs, demand for power from data centers is expected to grow by 175% by 2030, presenting a historic market opportunity for NuScale, even as its current revenue stands at $64 million with a market cap of $4.3 billion.
- Investment Risk Assessment: With a trading multiple of approximately 68 times revenue, NuScale's small modular reactor has the potential to transform nuclear energy generation, but the likelihood of generating returns for investors in the near term is low, necessitating careful evaluation of the potential long-term rewards against imminent volatility.
See More
NuScale Power: The Future of Nuclear Energy Design
- Massive Market Opportunity: According to Goldman Sachs, the demand for power from data centers is expected to increase by 175% by 2030, while the U.S. grid is unable to meet such a significant demand, presenting a historic market opportunity for NuScale's factory-assembled reactors.
- Leading Technology Approval: NuScale is the only nuclear technology company with Small Modular Reactor (SMR) design approval from the U.S. Nuclear Regulatory Commission; however, it has yet to secure any firm sales contracts, resulting in financial strain on the company.
- Severe Financial Condition: With a market cap of $4.3 billion and trailing twelve-month revenue of approximately $64 million, NuScale trades at a staggering 68 times sales, indicating a high valuation despite ongoing losses, with profitability unlikely in the coming years.
- Investment Risk Advisory: While NuScale holds significant innovative potential in the nuclear energy sector, its stock price is around $14, prompting investors to carefully weigh the risks of short-term volatility against potential long-term rewards, especially as analysts have not included it in their top investment stock lists.
See More
NuScale Power: The Future of Small Modular Reactors
- Market Position: NuScale Power stands as the only U.S. nuclear technology company with SMR design approval from the Nuclear Regulatory Commission, yet its stock price is around $14, reflecting market concerns about its future profitability amidst numerous nuclear startups.
- Technology Deployment: The company has agreed to deploy its small modular reactor technology for the Tennessee Valley Authority (TVA) and a Romanian power plant project, but it has yet to secure any firm sales, resulting in operational losses and cash burn.
- Significant Market Opportunity: According to Goldman Sachs, demand for power from data centers could surge by 175% by 2030, presenting a historic market opportunity for NuScale's factory-assembled reactors, although profitability may take several years to achieve.
- Investment Risk Assessment: While NuScale could transform nuclear energy generation, investors should carefully weigh the risks of short-term volatility against potential long-term rewards at a $14 share price, especially since it was not included in the Motley Fool's list of top recommended stocks.
See More
NuScale Power's Nuclear Renaissance and Challenges
- Surging Market Demand: The global electricity demand is skyrocketing due to the rapid growth of artificial intelligence, positioning NuScale Power as a key player in the small modular reactor (SMR) sector; however, despite its stock soaring from $2.50 in late 2023 to $60 last year, it has since fallen below $15, indicating market volatility.
- Capital Cost Challenges: The traditional nuclear power sector faces massive upfront capital costs, requiring billions for large plants, while NuScale's modular design allows for manufacturing at lower electricity needs and scaling up, yet it still relies on support from governments and large corporations.
- Regulatory Approval Advantage: NuScale Power has secured approvals from the Nuclear Regulatory Commission (NRC) for some of its designs, giving it a competitive edge in the global nuclear market; however, the company has failed to win any contracts for actual reactor construction, highlighting a lack of market acceptance.
- Concerning Financial Status: With nearly zero revenue and significant cash burn, coupled with a rapidly increasing share count, NuScale Power's inability to secure substantial contracts during what is arguably the best time in history for the power sector serves as a serious warning signal for investors.
See More
NuScale Power Class Action Lawsuit Announcement
- Class Action Initiation: NuScale Power Corporation faces allegations of failing to disclose significant risks associated with its partnership with ENTRA1 during the period from May 13, 2025, to November 6, 2025, leading to investor losses, with a deadline of April 20, 2026, for investors to apply as lead plaintiffs.
- Financial Loss Disclosure: 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, resulting in a quarterly net loss skyrocketing to $532 million, up from $46 million in the previous year.
- Severe Market Reaction: Following the financial disclosures on November 6, 2025, NuScale's stock price plummeted over 12% within two days, indicating a significant loss of investor confidence in its commercialization strategy and raising concerns about future prospects.
- Legal Representation Information: Robbins Geller Rudman & Dowd LLP is offering legal support and encouraging investors who purchased NuScale stock during the class period to participate, highlighting their extensive experience and successful track record in securities fraud cases.
See More
NuScale Power Faces Class Action Lawsuit for Securities Fraud
- Lawsuit Background: Bleichmar Fonti & Auld LLP has filed a class action lawsuit against NuScale Power and its executives for securities fraud, resulting in a stock price drop of over 12.4% in November 2025.
- Financial Mismanagement: NuScale's general and administrative expenses surged from $17 million to $519 million in Q3 2025, with $495 million paid to ENTRA1, indicating significant financial mismanagement that could undermine investor confidence.
- Partnership Issues: The partnership with ENTRA1 is under scrutiny as it allegedly has no significant experience in building or operating nuclear projects, reflecting NuScale's lack of due diligence in partner selection, which may harm its market reputation.
- Stock Price Impact: Following the lawsuit announcement, NuScale's stock fell from $32.46 to $28.43, a loss of over $4, indicating market concerns about the company's future and potential investor withdrawals.
See More
NuScale Power's Small Modular Reactor Prospects
- Market Leadership: NuScale Power is the only U.S. company with NRC design approval for small modular reactors, yet its stock price around $14 reflects challenges in achieving profitability, indicating the fragility of its market leadership.
- Technology Deployment Progress: The company has agreed to deploy its technology for the Tennessee Valley Authority and a Romanian power plant project, but it has yet to secure any firm sales, highlighting the slow pace of its commercialization efforts.
- Market Opportunity: According to Goldman Sachs, demand for power from data centers is expected to grow by 175% by 2030, presenting a historic market opportunity for NuScale, even as its current revenue stands at $64 million with a market cap of $4.3 billion.
- Investment Risk Assessment: With a trading multiple of approximately 68 times revenue, NuScale's small modular reactor has the potential to transform nuclear energy generation, but the likelihood of generating returns for investors in the near term is low, necessitating careful evaluation of the potential long-term rewards against imminent volatility.
See More
NuScale Power: The Future of Nuclear Energy Design
- Massive Market Opportunity: According to Goldman Sachs, the demand for power from data centers is expected to increase by 175% by 2030, while the U.S. grid is unable to meet such a significant demand, presenting a historic market opportunity for NuScale's factory-assembled reactors.
- Leading Technology Approval: NuScale is the only nuclear technology company with Small Modular Reactor (SMR) design approval from the U.S. Nuclear Regulatory Commission; however, it has yet to secure any firm sales contracts, resulting in financial strain on the company.
- Severe Financial Condition: With a market cap of $4.3 billion and trailing twelve-month revenue of approximately $64 million, NuScale trades at a staggering 68 times sales, indicating a high valuation despite ongoing losses, with profitability unlikely in the coming years.
- Investment Risk Advisory: While NuScale holds significant innovative potential in the nuclear energy sector, its stock price is around $14, prompting investors to carefully weigh the risks of short-term volatility against potential long-term rewards, especially as analysts have not included it in their top investment stock lists.
See More
NuScale Power: The Future of Small Modular Reactors
- Market Position: NuScale Power stands as the only U.S. nuclear technology company with SMR design approval from the Nuclear Regulatory Commission, yet its stock price is around $14, reflecting market concerns about its future profitability amidst numerous nuclear startups.
- Technology Deployment: The company has agreed to deploy its small modular reactor technology for the Tennessee Valley Authority (TVA) and a Romanian power plant project, but it has yet to secure any firm sales, resulting in operational losses and cash burn.
- Significant Market Opportunity: According to Goldman Sachs, demand for power from data centers could surge by 175% by 2030, presenting a historic market opportunity for NuScale's factory-assembled reactors, although profitability may take several years to achieve.
- Investment Risk Assessment: While NuScale could transform nuclear energy generation, investors should carefully weigh the risks of short-term volatility against potential long-term rewards at a $14 share price, especially since it was not included in the Motley Fool's list of top recommended stocks.
See More
