NuScale Power's Small Reactor Aims for Carbon-Free Energy Transition
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 08 2026
0mins
Source: Fool
- Significant Market Potential: NuScale Power's small light-water reactor is viewed as a crucial solution for addressing carbon neutrality challenges, with small modular reactors (SMRs) expected to become a key energy source over the next three decades, potentially reaching a market size of $10 trillion.
- Clear Regulatory Advantage: NuScale is the only U.S. company with an SMR design approved by the Nuclear Regulatory Commission (NRC), and while competitors like Oklo are rapidly approaching regulatory approval, NuScale's head start positions it strongly in the emerging nuclear market.
- Uncertain Revenue Outlook: Despite its regulatory edge, NuScale currently has negligible SMR revenue, and it may take several years before it achieves commercialization profitability, with its stock trading about 75% lower than its all-time high, reflecting market concerns about its future earnings potential.
- Analyst Optimism: Despite execution risks, the average analyst price target is $17, implying nearly 30% upside from current prices, particularly as demand for artificial intelligence infrastructure grows, making NuScale an attractive investment opportunity in the energy sector.
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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: 10.070
Low
18.50
Averages
32.77
High
60.00
Current: 10.070
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.
The Future of Nuclear Energy and AI
- Nuclear Renaissance: Nuclear energy is experiencing a resurgence globally, driven by surging electricity demand, with Bank of America estimating a long-term market opportunity of $10 trillion, indicating its critical role in future energy structures over the coming decades.
- Potential of SMRs: NuScale focuses on small modular reactors (SMRs), which are theoretically faster and cheaper to build than traditional nuclear plants, allowing for expansion alongside the AI industry, thereby enhancing its market competitiveness.
- AI-Driven Energy Demand: The rapid construction of data centers and the proliferation of artificial intelligence have sharply increased the demand for clean, reliable energy, positioning nuclear as a strong candidate to meet this need and potentially playing a key role over the next 100 years.
- Intensifying Market Competition: While only two SMR systems are currently operational globally, many more projects are underway, attracting interest from numerous competitors, necessitating NuScale to demonstrate exceptional execution capabilities in its project pipeline to ensure future market attractiveness.
See More
Fluor's Stable Growth Outlook Amid Challenges
- Successful Business Transformation: Fluor has successfully shifted over 80% of its projects from fixed-price to reimbursable contracts over the past two years, a change that not only reduces execution risks but also lays a foundation for stable growth in the future.
- Market Growth Drivers: With the ongoing growth in cloud computing, AI, industrial, and nuclear markets, Fluor expects to gain more business support, which will further drive revenue growth and enhance its market competitiveness.
- Profitability Improvement: Fluor recently liquidated its remaining stake in NuScale, generating an estimated raw profit of $1.86 billion, a move that will enable the company to achieve more stable profit growth in the coming years.
- Optimistic Future Expectations: Analysts expect Fluor's adjusted EPS to rise by 18% in 2026 and 28% in 2027, and if the company meets these expectations, its stock could potentially rise by about 28% over the next 12 months.
See More
Fluor Overcomes Challenges, Eyes Future Growth
- Business Stabilization: Over the past six years, Fluor has overcome significant challenges, particularly severe delays and cost overruns in 2020 and 2021, successfully stabilizing its operations by shifting to reimbursable contracts instead of fixed-price projects.
- Contract Structure Optimization: Currently, over 80% of Fluor's contracts are reimbursable, and this percentage is expected to continue rising, which will provide more support for the company in rapidly growing markets such as cloud computing, AI, and nuclear energy.
- Profitability Enhancement: Fluor recently liquidated its remaining stake in NuScale, generating an estimated profit of $1.86 billion, a move that will enable the company to achieve more stable growth in the coming years.
- Future Growth Expectations: Analysts expect Fluor's adjusted EPS to rise by 18% in 2026 and 28% in 2027, and if these expectations are met, the stock could potentially rise by about 28% over the next 12 months.
See More
NuScale Power: A Century-Long Opportunity in Nuclear Energy
- Nuclear Renaissance: According to a Bank of America report, nuclear energy is being rediscovered amid surging electricity demand, with a projected $10 trillion market opportunity over the next century, highlighting its critical role in the clean energy transition.
- AI-Driven Energy Demand: The rapid growth of artificial intelligence is leading to a surge in energy needs for data centers, positioning nuclear energy as an ideal solution, with expected annual growth through at least 2050, thereby enhancing NuScale's long-term growth potential.
- Advantages of SMRs: NuScale focuses on small modular reactors (SMRs), which are theoretically faster and cheaper to build than traditional nuclear plants and can be expanded to meet future demands, thereby increasing its market competitiveness in the evolving AI landscape.
- Market Competition and Execution: While only two SMR systems are currently operational globally, many more are in development, and NuScale's success will hinge on its ability to execute its project pipeline effectively and attract future customers' interest.
See More
Nuclear Energy Investment Sees Trillion-Dollar Opportunity
- Massive Market Potential: A recent Bank of America report projects that the nuclear energy market could reach $10 trillion over the next few decades, driven by rising electricity demand and the construction of energy-intensive data centers, highlighting nuclear's critical role in the energy transition.
- Advantages of SMRs: NuScale and Oklo focus on small modular reactors (SMRs), which offer faster construction and lower costs due to their modular design, potentially providing higher returns on investment and a smaller carbon footprint compared to traditional nuclear plants.
- Divergent Market Strategies: NuScale has partnered with the Tennessee Valley Authority to build a 6 GW SMR system that will connect directly to the grid, while Oklo targets data centers with a 1.2 GW SMR system, illustrating significant differences in their market positioning.
- Investment Portfolio Recommendation: Despite their differing strategies, investors are encouraged to consider a balanced investment in both Oklo and NuScale to mitigate risks and capitalize on the growth potential of the nuclear energy market, especially as SMR technology gains acceptance.
See More
Surge in Nuclear Energy Investment Opportunities
- Massive Market Potential: A recent Bank of America report projects that the nuclear energy market could reach $10 trillion over the next few decades, driven by rising electricity demand from electrification of transportation, industrial growth, and data center expansions, highlighting the strategic importance of nuclear investments.
- Advantages of SMRs: NuScale and Oklo focus on small modular reactors (SMRs) with capacities ranging from 20 MWe to 300 MWe, which can be deployed faster and at lower costs compared to traditional plants, positioning them as key players in the future nuclear energy landscape.
- Diverse Market Strategies: NuScale has partnered with the Tennessee Valley Authority to build a 6 GW system that connects directly to the grid, while Oklo is collaborating with Meta Platforms to provide a 1.2 GW SMR system for AI data centers, showcasing their distinct market positioning.
- Portfolio Recommendation: Despite differing strategies, investors are encouraged to consider a balanced investment in both Oklo and NuScale to mitigate risks and capitalize on the growth potential of SMRs, especially as global demand for clean energy continues to rise.
See More
The Future of Nuclear Energy and AI
- Nuclear Renaissance: Nuclear energy is experiencing a resurgence globally, driven by surging electricity demand, with Bank of America estimating a long-term market opportunity of $10 trillion, indicating its critical role in future energy structures over the coming decades.
- Potential of SMRs: NuScale focuses on small modular reactors (SMRs), which are theoretically faster and cheaper to build than traditional nuclear plants, allowing for expansion alongside the AI industry, thereby enhancing its market competitiveness.
- AI-Driven Energy Demand: The rapid construction of data centers and the proliferation of artificial intelligence have sharply increased the demand for clean, reliable energy, positioning nuclear as a strong candidate to meet this need and potentially playing a key role over the next 100 years.
- Intensifying Market Competition: While only two SMR systems are currently operational globally, many more projects are underway, attracting interest from numerous competitors, necessitating NuScale to demonstrate exceptional execution capabilities in its project pipeline to ensure future market attractiveness.
See More
Fluor's Stable Growth Outlook Amid Challenges
- Successful Business Transformation: Fluor has successfully shifted over 80% of its projects from fixed-price to reimbursable contracts over the past two years, a change that not only reduces execution risks but also lays a foundation for stable growth in the future.
- Market Growth Drivers: With the ongoing growth in cloud computing, AI, industrial, and nuclear markets, Fluor expects to gain more business support, which will further drive revenue growth and enhance its market competitiveness.
- Profitability Improvement: Fluor recently liquidated its remaining stake in NuScale, generating an estimated raw profit of $1.86 billion, a move that will enable the company to achieve more stable profit growth in the coming years.
- Optimistic Future Expectations: Analysts expect Fluor's adjusted EPS to rise by 18% in 2026 and 28% in 2027, and if the company meets these expectations, its stock could potentially rise by about 28% over the next 12 months.
See More
Fluor Overcomes Challenges, Eyes Future Growth
- Business Stabilization: Over the past six years, Fluor has overcome significant challenges, particularly severe delays and cost overruns in 2020 and 2021, successfully stabilizing its operations by shifting to reimbursable contracts instead of fixed-price projects.
- Contract Structure Optimization: Currently, over 80% of Fluor's contracts are reimbursable, and this percentage is expected to continue rising, which will provide more support for the company in rapidly growing markets such as cloud computing, AI, and nuclear energy.
- Profitability Enhancement: Fluor recently liquidated its remaining stake in NuScale, generating an estimated profit of $1.86 billion, a move that will enable the company to achieve more stable growth in the coming years.
- Future Growth Expectations: Analysts expect Fluor's adjusted EPS to rise by 18% in 2026 and 28% in 2027, and if these expectations are met, the stock could potentially rise by about 28% over the next 12 months.
See More
NuScale Power: A Century-Long Opportunity in Nuclear Energy
- Nuclear Renaissance: According to a Bank of America report, nuclear energy is being rediscovered amid surging electricity demand, with a projected $10 trillion market opportunity over the next century, highlighting its critical role in the clean energy transition.
- AI-Driven Energy Demand: The rapid growth of artificial intelligence is leading to a surge in energy needs for data centers, positioning nuclear energy as an ideal solution, with expected annual growth through at least 2050, thereby enhancing NuScale's long-term growth potential.
- Advantages of SMRs: NuScale focuses on small modular reactors (SMRs), which are theoretically faster and cheaper to build than traditional nuclear plants and can be expanded to meet future demands, thereby increasing its market competitiveness in the evolving AI landscape.
- Market Competition and Execution: While only two SMR systems are currently operational globally, many more are in development, and NuScale's success will hinge on its ability to execute its project pipeline effectively and attract future customers' interest.
See More
Nuclear Energy Investment Sees Trillion-Dollar Opportunity
- Massive Market Potential: A recent Bank of America report projects that the nuclear energy market could reach $10 trillion over the next few decades, driven by rising electricity demand and the construction of energy-intensive data centers, highlighting nuclear's critical role in the energy transition.
- Advantages of SMRs: NuScale and Oklo focus on small modular reactors (SMRs), which offer faster construction and lower costs due to their modular design, potentially providing higher returns on investment and a smaller carbon footprint compared to traditional nuclear plants.
- Divergent Market Strategies: NuScale has partnered with the Tennessee Valley Authority to build a 6 GW SMR system that will connect directly to the grid, while Oklo targets data centers with a 1.2 GW SMR system, illustrating significant differences in their market positioning.
- Investment Portfolio Recommendation: Despite their differing strategies, investors are encouraged to consider a balanced investment in both Oklo and NuScale to mitigate risks and capitalize on the growth potential of the nuclear energy market, especially as SMR technology gains acceptance.
See More
Surge in Nuclear Energy Investment Opportunities
- Massive Market Potential: A recent Bank of America report projects that the nuclear energy market could reach $10 trillion over the next few decades, driven by rising electricity demand from electrification of transportation, industrial growth, and data center expansions, highlighting the strategic importance of nuclear investments.
- Advantages of SMRs: NuScale and Oklo focus on small modular reactors (SMRs) with capacities ranging from 20 MWe to 300 MWe, which can be deployed faster and at lower costs compared to traditional plants, positioning them as key players in the future nuclear energy landscape.
- Diverse Market Strategies: NuScale has partnered with the Tennessee Valley Authority to build a 6 GW system that connects directly to the grid, while Oklo is collaborating with Meta Platforms to provide a 1.2 GW SMR system for AI data centers, showcasing their distinct market positioning.
- Portfolio Recommendation: Despite differing strategies, investors are encouraged to consider a balanced investment in both Oklo and NuScale to mitigate risks and capitalize on the growth potential of SMRs, especially as global demand for clean energy continues to rise.
See More
