NuScale's Small Modular Reactors: A Market Disruption or Struggle Ahead?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: NASDAQ.COM
- Market Potential and Challenges: NuScale's small modular reactors (SMRs) are expected to meet the soaring energy demands of cloud computing, AI, and industrial automation, yet competitive pressures and macroeconomic headwinds may hinder its growth potential.
- Revenue Growth Expectations: Analysts forecast NuScale's revenue to rise from $31.5 million in 2025 to $310.7 million in 2028, although with a market cap of $3.4 billion, it currently trades at 11 times its projected 2028 sales, indicating high valuation risks.
- Project Collaboration Progress: NuScale is working with Fluor to build a 462 MWe plant in Romania, with most revenue coming from front-end engineering and design (FEED) studies, making this project a crucial pillar for its future income.
- Investor Confidence Wavers: Fluor recently liquidated its remaining shares in NuScale, reflecting concerns over the company's future profitability, and while NuScale's SMRs have the potential to disrupt the nuclear market in the 2030s, it still faces significant profitability challenges in the near term.
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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: 10.340
Low
18.50
Averages
32.77
High
60.00
Current: 10.340
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.
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- First-Mover Advantage: NuScale Power holds the unique position as the only small modular reactor company with U.S. Nuclear Regulatory Commission (NRC) approval, providing it with a significant lead over competitors still striving for this milestone, particularly as demand for reliable power sources surges.
- Project Pipeline: The company is collaborating with the Tennessee Valley Authority and commercialization partner ENTRA1 Energy to deploy up to 6 gigawatts of SMR capacity, alongside a Romanian initiative that, if successful, could yield substantial revenue for investors by the early 2030s.
- Financial Position: While NuScale boasts approximately $900 million in cash reserves and short-term investments to support its commercialization efforts, it reported a staggering net loss of $355.8 million in 2025, a 160% increase from the previous year, highlighting ongoing financial risks.
- Legal Risks: The company is currently facing a class action lawsuit alleging that executives misled investors, which could result in financial and reputational damage, compounded by the threat from competitors like Oklo, necessitating a long-term investment perspective from shareholders.
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- Cash Reserves and Commercialization Progress: The company currently holds about $900 million in cash reserves; however, it faces high cash burn rates and challenges in achieving commercialization, which could limit its survival in a competitive market.
- Legal Litigation Risks: NuScale is facing a class action lawsuit alleging that executives misled investors, which could lead to financial losses and reputational damage, further exacerbating market concerns about its future, especially as competitors like Oklo emerge.
- Market Outlook and Investment Opportunities: Despite numerous challenges, NuScale's first-mover advantage in the small modular reactor space and its partnership with the Tennessee Valley Authority remain strategically significant, with potential to generate substantial revenue by the early 2030s if successfully executed.
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