SpaceX IPO Expected to Reach $1.75 Trillion Valuation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
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Should l Buy SMR?
Source: Fool
- IPO Valuation Outlook: SpaceX is expected to go public this summer with a valuation potentially reaching $1.75 trillion, making it one of the largest IPOs in history and attracting significant investor interest.
- Retail Investor Opportunity: Up to 30% of shares will be reserved for smaller retail investors, allowing millions to participate in SpaceX stock investments, which could further enhance market activity.
- Impact on NuScale: The SpaceX IPO is likely to positively affect nuclear stocks like NuScale Power, as the influx of capital and attention will highlight the energy-intensive challenges that NuScale is racing to address.
- Potential of Small Modular Reactors: While SpaceX's orbital data center ambitions face technological hurdles, NuScale stands out as the only U.S. SMR developer with design approval from the Nuclear Regulatory Commission, positioning it favorably to scale domestic SMR capacity.
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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: 12.060
Low
18.50
Averages
32.77
High
60.00
Current: 12.060
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.
- SpaceX IPO Outlook: SpaceX is planning a public share sale with a target valuation of $1.75 trillion, which, if successful, would make it the largest stock in history, drawing global investor attention and propelling future company growth.
- Nuclear Company Benefits: As the buzz around SpaceX's IPO rises, innovative companies like NuScale Power are likely to benefit from increased market interest, particularly against the backdrop of the AI industry's surging demand for new energy sources, positioning NuScale's SMR technology favorably.
- AI Industry Energy Crisis: The energy demands of AI data centers are skyrocketing, with the current electricity grid unable to meet this growth, necessitating a massive influx of new energy generation capacity in the coming years to sustain the expansion of the AI sector.
- NuScale Market Potential: Although NuScale's market cap has fallen to $4.4 billion, it remains the only U.S. company with an approved SMR design and has several large projects in the pipeline, indicating that trillions of dollars will be invested in scaling SMR technology over the next few decades.
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- Nuclear Market Opportunity: The U.S. government aims to quadruple nuclear capacity from approximately 100 GW in 2024 to 400 GW over the next 25 years, potentially creating a $10 trillion market opportunity, highlighting nuclear energy's critical role in the clean energy transition.
- Uranium Supply Dominance: Cameco currently produces about 17% of the world's uranium, ranking second globally, and with demand expected to rise by 28% by 2030, Cameco's pricing power and sales volume are set to significantly increase, further solidifying its market position.
- Small Reactor Technology: NuScale Power is the only company with an NRC-approved small modular reactor design, and SMR technology is seen as a primary growth driver for the nuclear industry, potentially reducing construction time from a decade to two to three years and lowering costs.
- Strategic Investment Outlook: Cameco holds a 49% stake in Westinghouse, which is engaged in an $80 billion agreement with the U.S. government to build new reactors, underscoring its strategic importance and market potential in the nuclear renaissance.
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- Nuclear Technology Outlook: NuScale Power has an approved design for its nuclear reactor, yet the absence of sales has left the startup in a money-losing position, necessitating cautious evaluation by investors.
- Project Collaboration Progress: The partnership with Romanian utility RoPower has received project approval; however, the lack of funding leaves the project's future uncertain, impacting the company's revenue potential.
- Market Volatility: NuScale's stock price is driven by news flow and investor sentiment, and volatility is expected to continue, particularly as sales remain unrealized, requiring investors to prepare for a long-term hold.
- Industry Optimism: Despite challenges, the outlook for NuScale Power remains positive due to rising nuclear energy demand, especially in the context of collaborations with major tech companies, which may attract investor interest in the future.
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- IPO Valuation Outlook: SpaceX is expected to go public this summer with a valuation potentially reaching $1.75 trillion, making it one of the largest IPOs in history and attracting significant investor interest.
- Retail Investor Opportunity: Up to 30% of shares will be reserved for smaller retail investors, allowing millions to participate in SpaceX stock investments, which could further enhance market activity.
- Impact on NuScale: The SpaceX IPO is likely to positively affect nuclear stocks like NuScale Power, as the influx of capital and attention will highlight the energy-intensive challenges that NuScale is racing to address.
- Potential of Small Modular Reactors: While SpaceX's orbital data center ambitions face technological hurdles, NuScale stands out as the only U.S. SMR developer with design approval from the Nuclear Regulatory Commission, positioning it favorably to scale domestic SMR capacity.
See More
- IPO Valuation Outlook: SpaceX is expected to go public this summer with a valuation potentially reaching $1.75 trillion, making it one of the largest IPOs in history and drawing significant investor attention.
- Retail Investor Opportunity: Up to 30% of shares will be reserved for smaller retail investors, allowing millions to participate in SpaceX stock, thereby increasing public interest in the aerospace sector.
- Impact on Nuclear Stocks: The SpaceX IPO is likely to spotlight companies like NuScale Power, particularly its small modular reactor (SMR) technology, which could be key in addressing the energy-intensive challenges faced by the AI industry.
- Market Focus Shift: While SpaceX's orbital data center plans face technological hurdles, its IPO will spark widespread discussions on energy solutions, potentially driving NuScale's expansion of SMR capabilities in the U.S. market.
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- Market Valuation: NuScale Power is currently valued at approximately $4 billion, and despite a nearly 24% decline in stock price over the past year, it has achieved an average annual growth rate of 17% over the last three years, indicating its potential in the nuclear energy market.
- Technological Leadership: As the first small modular reactor developer to receive Standard Design Approvals from the U.S. Nuclear Regulatory Commission, NuScale possesses significant advantages in design and supply chain, positioning itself to dominate future nuclear deployments.
- Project Planning: The company is collaborating with the Tennessee Valley Authority to implement what would be the largest nuclear power deployment program in U.S. history, leveraging its advanced technology to further solidify its market position and drive future growth.
- Profitability Challenges: Despite the optimistic outlook, NuScale faces challenges in profitability, with progressively larger losses in recent years, while also contending with competition from solar power, making its future profitability uncertain.
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