NuScale Power's Small Modular Reactor Prospects
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
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Should l Buy SMR?
Source: Fool
- Market Leadership: NuScale Power is the only U.S. company with NRC design approval for small modular reactors, yet its stock price around $14 reflects challenges in achieving profitability, indicating the fragility of its market leadership.
- Technology Deployment Progress: The company has agreed to deploy its technology for the Tennessee Valley Authority and a Romanian power plant project, but it has yet to secure any firm sales, highlighting the slow pace of its commercialization efforts.
- Market Opportunity: According to Goldman Sachs, demand for power from data centers is expected to grow by 175% by 2030, presenting a historic market opportunity for NuScale, even as its current revenue stands at $64 million with a market cap of $4.3 billion.
- Investment Risk Assessment: With a trading multiple of approximately 68 times revenue, NuScale's small modular reactor has the potential to transform nuclear energy generation, but the likelihood of generating returns for investors in the near term is low, necessitating careful evaluation of the potential long-term rewards against imminent volatility.
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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: 14.640
Low
18.50
Averages
32.77
High
60.00
Current: 14.640
Low
18.50
Averages
32.77
High
60.00
About SMR
NuScale Power Corporation is a provider of proprietary advanced small modular reactor nuclear technology. The NuScale Power Module, the Company's SMR technology, is a small pressurized water reactor that can generate 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 governments, political subdivisions, state-owned enterprises, investor-owned utilities and other technology and industrial companies, both in domestic and international markets.
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 Leadership: NuScale Power is the only U.S. company with NRC design approval for small modular reactors, yet its stock price around $14 reflects challenges in achieving profitability, indicating the fragility of its market leadership.
- Technology Deployment Progress: The company has agreed to deploy its technology for the Tennessee Valley Authority and a Romanian power plant project, but it has yet to secure any firm sales, highlighting the slow pace of its commercialization efforts.
- Market Opportunity: According to Goldman Sachs, demand for power from data centers is expected to grow by 175% by 2030, presenting a historic market opportunity for NuScale, even as its current revenue stands at $64 million with a market cap of $4.3 billion.
- Investment Risk Assessment: With a trading multiple of approximately 68 times revenue, NuScale's small modular reactor has the potential to transform nuclear energy generation, but the likelihood of generating returns for investors in the near term is low, necessitating careful evaluation of the potential long-term rewards against imminent volatility.
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- Massive Market Opportunity: According to Goldman Sachs, the demand for power from data centers is expected to increase by 175% by 2030, while the U.S. grid is unable to meet such a significant demand, presenting a historic market opportunity for NuScale's factory-assembled reactors.
- Leading Technology Approval: NuScale is the only nuclear technology company with Small Modular Reactor (SMR) design approval from the U.S. Nuclear Regulatory Commission; however, it has yet to secure any firm sales contracts, resulting in financial strain on the company.
- Severe Financial Condition: With a market cap of $4.3 billion and trailing twelve-month revenue of approximately $64 million, NuScale trades at a staggering 68 times sales, indicating a high valuation despite ongoing losses, with profitability unlikely in the coming years.
- Investment Risk Advisory: While NuScale holds significant innovative potential in the nuclear energy sector, its stock price is around $14, prompting investors to carefully weigh the risks of short-term volatility against potential long-term rewards, especially as analysts have not included it in their top investment stock lists.
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- Market Position: NuScale Power stands as the only U.S. nuclear technology company with SMR design approval from the Nuclear Regulatory Commission, yet its stock price is around $14, reflecting market concerns about its future profitability amidst numerous nuclear startups.
- Technology Deployment: The company has agreed to deploy its small modular reactor technology for the Tennessee Valley Authority (TVA) and a Romanian power plant project, but it has yet to secure any firm sales, resulting in operational losses and cash burn.
- Significant Market Opportunity: According to Goldman Sachs, demand for power from data centers could surge by 175% by 2030, presenting a historic market opportunity for NuScale's factory-assembled reactors, although profitability may take several years to achieve.
- Investment Risk Assessment: While NuScale could transform nuclear energy generation, investors should carefully weigh the risks of short-term volatility against potential long-term rewards at a $14 share price, especially since it was not included in the Motley Fool's list of top recommended stocks.
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- Class Action Initiation: Rosen Law Firm has announced a class action lawsuit on behalf of NuScale Power's Class A common stock purchasers from May 13 to November 6, 2025, indicating significant legal risks that may undermine shareholder confidence.
- Compensation Mechanism: Investors joining the lawsuit can potentially receive compensation without any out-of-pocket costs, a risk-free participation model that may attract more affected shareholders and enhance the lawsuit's impact.
- Details of Allegations: The lawsuit alleges that defendants made false or misleading statements during the class period, failing to disclose ENTRA1 Energy LLC's lack of experience in nuclear projects, which could expose NuScale's commercialization strategy to significant undisclosed risks, affecting the company's future growth.
- Law Firm Credentials: Rosen Law Firm is renowned for its successful track record in securities class actions, having recovered over $438 million for investors in 2019 alone, showcasing its strength and experience in handling such cases, which may bolster investor confidence in the lawsuit's outcome.
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- Lawsuit Background: Berger Montague PC has filed a class action lawsuit against NuScale Power on behalf of investors who acquired securities between May 13 and November 6, 2025, alleging the company failed to disclose significant risks associated with its commercialization partner, ENTRA1 Energy LLC.
- Financial Crisis Revealed: The lawsuit claims that NuScale's general and administrative expenses surged over 3,000% to $519 million in Q3 2025, primarily due to a $495 million payment to ENTRA1, resulting in a net loss of $532 million for the quarter.
- Stock Price Reaction: Following the financial disclosure on November 6, 2025, NuScale Class A shares plummeted over 12% within two days, dropping from $32.46 to $28.43 per share, indicating market concerns regarding the company's financial health.
- Investor Action: Investors must apply by April 20, 2026, to be appointed as lead plaintiff representatives in the class action, highlighting a crisis of confidence in the company's management and potential implications for future investments.
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- Lawsuit Background: Robbins LLP reminds shareholders of a class action filed on behalf of investors who purchased NuScale Power (NYSE:SMR) Class A shares between May 13, 2025, and November 6, 2025, alleging the company misled investors regarding its business prospects.
- Financial Crisis: During the lawsuit period, NuScale revealed that its general and administrative expenses surged over 3,000% to $519 million in Q3, primarily due to a $495 million payment to ENTRA1, resulting in a quarterly net loss skyrocketing to $532 million, up from $46 million in the prior year.
- Stock Price Plunge: Following this news, NuScale's Class A shares dropped more than 12% over two days, from approximately $32 on November 6 to about $28 on November 10, and further declined to just $17 by November 21, representing a more than 70% drop from the class period high.
- Business Risks: Plaintiffs allege that NuScale failed to disclose ENTRA1's lack of experience in nuclear energy, exposing its commercialization strategy to significant undisclosed risks of failure, delays, and regulatory challenges, which could severely impact the company's future growth.
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