SMR Should I Buy
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NuScale Power Corp (SMR) is not a strong buy for a beginner, long-term investor at this time. While the company is positioned in a promising sector with potential growth in nuclear energy and AI-driven energy demand, significant execution risks, insider selling, and weak financial performance make it a less favorable investment currently. The lack of strong proprietary trading signals further supports a hold recommendation.
The MACD histogram is positive at 0.461, indicating bullish momentum, but it is contracting. RSI is neutral at 60.255, suggesting no strong overbought or oversold conditions. Moving averages are converging, showing no clear trend. Key resistance is at 13.578, which the pre-market price is nearing, while support is at 11.535.
The nuclear energy sector is gaining momentum, driven by AI data center power demand and a projected $10 trillion global market. NuScale remains the only NRC-approved SMR, which is a competitive advantage.
Insiders have significantly increased selling activity (up 17090.48% last month). Analysts have consistently lowered price targets, citing execution risks, financial challenges, and slower-than-expected commercialization. The company's financial performance is weak, with revenue dropping 94.72% YoY and a negative gross margin.
In Q4 2025, revenue dropped by 94.72% YoY to $1.8M, and net income fell to -$50.83M, down 32.21% YoY. EPS improved slightly to -0.8, up 15.94% YoY, but gross margin turned negative at -3.37%, a significant decline of 103.70% YoY.
Analysts are cautious, with mixed ratings. HSBC initiated coverage with a Hold rating and $13 price target, citing execution risks. Citi and UBS have Sell and Neutral ratings, respectively, with lowered price targets. Northland upgraded the stock to Outperform but also reduced its price target significantly. Overall, analysts highlight financial and execution risks despite the company's potential in the nuclear energy market.
