NuScale Power's Prospects in Small Modular Reactor Development
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 59 minutes ago
0mins
Source: Fool
- Market Potential: NuScale Power focuses on developing small modular reactors (SMRs) to provide clean energy within a reasonable budget and shorter timeline, particularly appealing to utility companies looking to replace coal plants to meet climate goals.
- Stock Volatility: Despite NuScale's stock plummeting about 75% over the past year, currently trading around $10, its market cap stands at $3.4 billion, reflecting a complex market perception of its future potential.
- Technological Edge: As the only U.S. company with an NRC-certified SMR design, NuScale holds a first-mover advantage, especially as unprecedented energy demands from AI data centers push utilities to explore alternative baseload power solutions.
- Government Support: The U.S. government's increasing support for nuclear energy, with the Trump administration aiming to quadruple nuclear capacity by 2050, positions SMRs as a key component in this expansion, although NuScale has yet to secure its first commercial sale.
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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: 10.150
Low
18.50
Averages
32.77
High
60.00
Current: 10.150
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.
- Market Potential: NuScale Power focuses on developing small modular reactors (SMRs) to provide clean energy within a reasonable budget and shorter timeline, particularly appealing to utility companies looking to replace coal plants to meet climate goals.
- Stock Volatility: Despite NuScale's stock plummeting about 75% over the past year, currently trading around $10, its market cap stands at $3.4 billion, reflecting a complex market perception of its future potential.
- Technological Edge: As the only U.S. company with an NRC-certified SMR design, NuScale holds a first-mover advantage, especially as unprecedented energy demands from AI data centers push utilities to explore alternative baseload power solutions.
- Government Support: The U.S. government's increasing support for nuclear energy, with the Trump administration aiming to quadruple nuclear capacity by 2050, positions SMRs as a key component in this expansion, although NuScale has yet to secure its first commercial sale.
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- NuScale Power's Predicament: NuScale Power's stock has plummeted by 75%, primarily because the company has yet to deploy a commercial small modular reactor (SMR), and despite having certified its design, the lack of real-world application has eroded investor confidence.
- Shifting Market Demand: Although demand for AI and data centers initially boosted NuScale's stock, growing concerns over an AI bubble have made investors more selective, leading to diminished demand for NuScale's offerings in the nuclear sector.
- Long-Term Growth Potential: With two projects in Romania and Tennessee still in the planning stages, expected to materialize in the 2030s, investors should view NuScale as an early-stage developer with long-term growth potential rather than a short-term investment opportunity.
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- Stock Decline: NuScale Power's stock has plummeted by 75% since its peak, primarily due to the failure to commercialize its small modular reactor technology, leading to a decline in investor confidence and reflecting waning enthusiasm for nuclear energy stocks.
- Insufficient Market Demand: Although NuScale leads in small reactor design certification, its technology has not translated into actual sales, and the diminishing excitement for AI has made nuclear energy demand appear less urgent, impacting the company's revenue outlook.
- Slow Project Progress: NuScale's two projects in Romania and Tennessee are still in the pre-development phase, with no substantial progress expected until the 2030s, prompting investors to adopt a cautious stance regarding its long-term growth potential.
- Investment Risk Advisory: Given NuScale's slow commercialization process, analysts recommend viewing it as an early-stage developer suitable for investors with a high-risk appetite, rather than a short-term investment choice.
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- Lawsuit Investigation: Kuehn Law, PLLC is investigating whether certain officers and directors of NuScale Power Corporation breached their fiduciary duties to shareholders, as a federal securities lawsuit alleges significant misrepresentations regarding the company's partnership with ENTRA1.
- Partner Risk: The lawsuit claims that NuScale entrusted its SMR commercialization strategy to ENTRA1, which had never built, financed, or operated a significant project, thereby creating undisclosed risks of failure, delays, and regulatory challenges.
- Shareholder Rights Protection: Kuehn Law urges shareholders who purchased SMR shares before May 13, 2025, to contact them promptly to enforce their rights within a limited timeframe, emphasizing the importance of shareholder voices in maintaining market integrity.
- Legal Cost Coverage: Kuehn Law states that all case costs will be covered by the firm, with no charges to investor clients, aiming to encourage more shareholders to participate in the lawsuit to protect their interests.
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- Lawsuit Investigation: Kuehn Law, PLLC is investigating whether certain officers and directors of NuScale Power breached their fiduciary duties to shareholders, as a federal securities lawsuit alleges significant misrepresentations regarding the capabilities of ENTRA1, potentially exposing shareholders to losses.
- Partner Risk: The lawsuit claims that NuScale Power entrusted its small modular reactor (SMR) commercialization strategy to ENTRA1, a partner with no prior experience in building, financing, or operating significant projects, thereby increasing the risks of project failures, delays, and regulatory challenges.
- Shareholder Rights Protection: Kuehn Law urges shareholders who purchased SMR stock before May 13, 2025, to contact the firm promptly to enforce their rights, highlighting the importance of shareholder involvement in maintaining the integrity of financial markets.
- Legal Cost Coverage: Kuehn Law states that it covers all case costs and does not charge its investor clients, aiming to encourage more shareholders to participate in the lawsuit to ensure the safety and legality of their investments.
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