The Atomic Shift: AI's $50 Billion Strategic Maneuver
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
0mins
Should l Buy SMR?
Source: Marketbeat
AI Growth and Energy Demand: The narrative around artificial intelligence (AI) has shifted from processing power to the need for reliable electrical power, as tech giants adapt to ensure their services remain online amidst increasing demand for AI capabilities.
Nuclear Energy's Rising Importance: Companies like Oracle and Meta are investing heavily in nuclear energy, recognizing it as a crucial, scalable solution to meet the energy demands of AI technologies, moving beyond traditional energy sources.
Investment Trends and Market Dynamics: Oracle's plan to raise $50 billion for nuclear reactor construction highlights a significant capital shift in the tech sector, indicating that nuclear energy is becoming foundational to the technology stack rather than just a commodity.
Regulatory Changes and Future Outlook: Recent regulatory shifts are expediting the deployment of nuclear energy projects, which could lead to a more stable and efficient energy supply for tech companies, ultimately benefiting investors as the demand for AI computing power continues to grow.
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Analyst Views on SMR
Wall Street analysts forecast SMR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SMR is 32.77 USD with a low forecast of 18.50 USD and a high forecast of 60.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
5 Buy
6 Hold
2 Sell
Hold
Current: 14.840
Low
18.50
Averages
32.77
High
60.00
Current: 14.840
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.
NuScale Power Stock Rises 23.4% on Political Tailwinds and Analyst Upgrade
- Significant Stock Surge: NuScale Power's stock jumped 23.4% in January, primarily driven by political support and an analyst upgrade, reflecting strong market interest in small modular reactor (SMR) technology.
- Policy Driving Nuclear Development: On January 5, the U.S. House Energy Subcommittee held hearings to explore the Trump administration's nuclear acceleration roadmap, aiming for three experimental reactors operational by July 2026, indicating a newfound urgency in the nuclear sector.
- Analyst Upgrade Boost: On January 9, Bank of America upgraded NuScale from 'Underperform' to 'Neutral' with a $28 price target, highlighting its licensing agreement with the Tennessee Valley Authority and the advantages of its light-water reactor design.
- AI Demand Impacting Stock: Despite NuScale's promising technology, concerns raised by Microsoft's earnings regarding the pace of AI infrastructure spending could negatively affect NuScale's stock performance, particularly if AI demand diminishes.
See More
Nuclear Energy Returns to Spotlight, Investors Focus on Key Players
- NuScale Power Struggles: NuScale Power's stock has declined approximately 30% over the past year, although it rebounded over 20% since early 2026; however, concerns arose after major investor Fluor sold its stake and the company missed earnings expectations, undermining confidence in its technological promises.
- Oklo's Strong Momentum: Oklo's stock skyrocketed in 2025 despite significant volatility, and its partnership with Meta has provided substantial market credibility, positioning it for continued strong growth into 2026.
- Financial Comparison: Oklo boasts around $1.2 billion in cash and marketable securities, significantly outpacing NuScale, which relies on limited engineering revenue and has yet to achieve profitability, thus facing greater financial pressure.
- Technological Development Paths: While NuScale is further along in technology development, it must transition from engineering revenue to actual contract deployment, whereas Oklo is gaining market recognition through partnerships with hyperscalers, potentially making it the winner in the next decade.
See More
Nuclear Market Recovery: Promising Prospects for Cameco and NuScale
- Market Recovery: Following a decade-long slump post-Fukushima, the nuclear energy market is rebounding due to rising power demands and AI market expansion, with global nuclear capacity projected to increase by 2.6 times by 2050.
- Cameco's Growth Potential: As the world's second-largest uranium miner, Cameco's uranium price has surged from $18 per pound in 2016 to $94, with expectations to reach $100, prompting the company to restart idled mines to meet demand; analysts forecast revenue and EPS growth of 9% and 91%, respectively, from 2024 to 2027.
- NuScale's Innovation: NuScale's small modular reactors (SMRs) are designed for deployment in areas unsuitable for conventional reactors; while still in the front-end engineering phase, a contract with the Tennessee Valley Authority will facilitate expansion before 2032.
- Investment Value: Despite Cameco's P/E ratio of 69 and NuScale's P/S ratio of 37, both companies' strategic investments and growing market demand may support their high valuations, positioning them as key players in the future of nuclear energy.
See More
Fluor Stock Surges 16.6% as Investor Confidence Grows
- Stock Rebound: Fluor's stock surged 16.6% in January 2026 after a nearly 20% decline in 2025, indicating a rebound in investor confidence, particularly due to the growth in its business backlog.
- Growing Backlog: As of Q3 2023, Fluor's Urban Solutions segment had a backlog exceeding $20 billion, representing about 75% of the company's total backlog, highlighting its significant market share in fast-growing sectors.
- Long-Term Project Outlook: Fluor anticipates approximately $90 billion in new project awards over the next several years, with earnings from these projects not expected until at least 2027, laying a solid foundation for long-term growth.
- Investment Return Potential: Fluor's investment in NuScale Power yielded over $400 million, strengthening its financial position and allowing a focus on core operations, which is expected to drive future business growth.
See More
The Atomic Shift: AI's $50 Billion Strategic Maneuver
AI Growth and Energy Demand: The narrative around artificial intelligence (AI) has shifted from processing power to the need for reliable electrical power, as tech giants adapt to ensure their services remain online amidst increasing demand for AI capabilities.
Nuclear Energy's Rising Importance: Companies like Oracle and Meta are investing heavily in nuclear energy, recognizing it as a crucial, scalable solution to meet the energy demands of AI technologies, moving beyond traditional energy sources.
Investment Trends and Market Dynamics: Oracle's plan to raise $50 billion for nuclear reactor construction highlights a significant capital shift in the tech sector, indicating that nuclear energy is becoming foundational to the technology stack rather than just a commodity.
Regulatory Changes and Future Outlook: Recent regulatory shifts are expediting the deployment of nuclear energy projects, which could lead to a more stable and efficient energy supply for tech companies, ultimately benefiting investors as the demand for AI computing power continues to grow.
See More
Analysis of Fluor's Investment in NuScale Power
- NuScale Investment Update: Fluor was an early investor in NuScale Power, which aims to build small modular nuclear reactors, and is positioning itself as a key partner in construction projects, particularly in Romania, indicating its strategic focus in the nuclear energy sector.
- Equity Monetization Plan: Fluor plans to sell the remainder of its NuScale stake in 2026, having already generated $605 million from stock sales in late 2025; while this transaction strengthens the balance sheet, it does not alter Fluor's core business model.
- Contract Structure Improvement: The management is addressing the issues with fixed-price contracts, with 82% of its backlog now consisting of reimbursable contracts, and 99% of the $3.4 billion in contracts signed in Q3 2025 being reimbursable, which will enhance business consistency.
- Cyclical Industry Risks: Despite improvements in contract structures, the construction industry remains inherently cyclical, with economic downturns leading to project delays or cancellations, necessitating careful evaluation of Fluor's performance amid economic fluctuations.
See More
NuScale Power Stock Rises 23.4% on Political Tailwinds and Analyst Upgrade
- Significant Stock Surge: NuScale Power's stock jumped 23.4% in January, primarily driven by political support and an analyst upgrade, reflecting strong market interest in small modular reactor (SMR) technology.
- Policy Driving Nuclear Development: On January 5, the U.S. House Energy Subcommittee held hearings to explore the Trump administration's nuclear acceleration roadmap, aiming for three experimental reactors operational by July 2026, indicating a newfound urgency in the nuclear sector.
- Analyst Upgrade Boost: On January 9, Bank of America upgraded NuScale from 'Underperform' to 'Neutral' with a $28 price target, highlighting its licensing agreement with the Tennessee Valley Authority and the advantages of its light-water reactor design.
- AI Demand Impacting Stock: Despite NuScale's promising technology, concerns raised by Microsoft's earnings regarding the pace of AI infrastructure spending could negatively affect NuScale's stock performance, particularly if AI demand diminishes.
See More
Nuclear Energy Returns to Spotlight, Investors Focus on Key Players
- NuScale Power Struggles: NuScale Power's stock has declined approximately 30% over the past year, although it rebounded over 20% since early 2026; however, concerns arose after major investor Fluor sold its stake and the company missed earnings expectations, undermining confidence in its technological promises.
- Oklo's Strong Momentum: Oklo's stock skyrocketed in 2025 despite significant volatility, and its partnership with Meta has provided substantial market credibility, positioning it for continued strong growth into 2026.
- Financial Comparison: Oklo boasts around $1.2 billion in cash and marketable securities, significantly outpacing NuScale, which relies on limited engineering revenue and has yet to achieve profitability, thus facing greater financial pressure.
- Technological Development Paths: While NuScale is further along in technology development, it must transition from engineering revenue to actual contract deployment, whereas Oklo is gaining market recognition through partnerships with hyperscalers, potentially making it the winner in the next decade.
See More
Nuclear Market Recovery: Promising Prospects for Cameco and NuScale
- Market Recovery: Following a decade-long slump post-Fukushima, the nuclear energy market is rebounding due to rising power demands and AI market expansion, with global nuclear capacity projected to increase by 2.6 times by 2050.
- Cameco's Growth Potential: As the world's second-largest uranium miner, Cameco's uranium price has surged from $18 per pound in 2016 to $94, with expectations to reach $100, prompting the company to restart idled mines to meet demand; analysts forecast revenue and EPS growth of 9% and 91%, respectively, from 2024 to 2027.
- NuScale's Innovation: NuScale's small modular reactors (SMRs) are designed for deployment in areas unsuitable for conventional reactors; while still in the front-end engineering phase, a contract with the Tennessee Valley Authority will facilitate expansion before 2032.
- Investment Value: Despite Cameco's P/E ratio of 69 and NuScale's P/S ratio of 37, both companies' strategic investments and growing market demand may support their high valuations, positioning them as key players in the future of nuclear energy.
See More
Fluor Stock Surges 16.6% as Investor Confidence Grows
- Stock Rebound: Fluor's stock surged 16.6% in January 2026 after a nearly 20% decline in 2025, indicating a rebound in investor confidence, particularly due to the growth in its business backlog.
- Growing Backlog: As of Q3 2023, Fluor's Urban Solutions segment had a backlog exceeding $20 billion, representing about 75% of the company's total backlog, highlighting its significant market share in fast-growing sectors.
- Long-Term Project Outlook: Fluor anticipates approximately $90 billion in new project awards over the next several years, with earnings from these projects not expected until at least 2027, laying a solid foundation for long-term growth.
- Investment Return Potential: Fluor's investment in NuScale Power yielded over $400 million, strengthening its financial position and allowing a focus on core operations, which is expected to drive future business growth.
See More
The Atomic Shift: AI's $50 Billion Strategic Maneuver
AI Growth and Energy Demand: The narrative around artificial intelligence (AI) has shifted from processing power to the need for reliable electrical power, as tech giants adapt to ensure their services remain online amidst increasing demand for AI capabilities.
Nuclear Energy's Rising Importance: Companies like Oracle and Meta are investing heavily in nuclear energy, recognizing it as a crucial, scalable solution to meet the energy demands of AI technologies, moving beyond traditional energy sources.
Investment Trends and Market Dynamics: Oracle's plan to raise $50 billion for nuclear reactor construction highlights a significant capital shift in the tech sector, indicating that nuclear energy is becoming foundational to the technology stack rather than just a commodity.
Regulatory Changes and Future Outlook: Recent regulatory shifts are expediting the deployment of nuclear energy projects, which could lead to a more stable and efficient energy supply for tech companies, ultimately benefiting investors as the demand for AI computing power continues to grow.
See More
Analysis of Fluor's Investment in NuScale Power
- NuScale Investment Update: Fluor was an early investor in NuScale Power, which aims to build small modular nuclear reactors, and is positioning itself as a key partner in construction projects, particularly in Romania, indicating its strategic focus in the nuclear energy sector.
- Equity Monetization Plan: Fluor plans to sell the remainder of its NuScale stake in 2026, having already generated $605 million from stock sales in late 2025; while this transaction strengthens the balance sheet, it does not alter Fluor's core business model.
- Contract Structure Improvement: The management is addressing the issues with fixed-price contracts, with 82% of its backlog now consisting of reimbursable contracts, and 99% of the $3.4 billion in contracts signed in Q3 2025 being reimbursable, which will enhance business consistency.
- Cyclical Industry Risks: Despite improvements in contract structures, the construction industry remains inherently cyclical, with economic downturns leading to project delays or cancellations, necessitating careful evaluation of Fluor's performance amid economic fluctuations.
See More
