NuScale Power (SMR -1.75%) doesn't generate material revenue from its core business focus. But that could change in very short order if the nuclear power company gets positive news from its first potential customer. Whether or not NuScale Power is a buy at its current $45 stock price will depend greatly on the outcome of one big decision.
Here's what you need to know before buying shares of NuScale Power.
What does NuScale Power do?
If you look at how NuScale Power is generating revenue today, you would think the company was a consultant to the utility industry. That's because, at the moment, its $13.4 million in first-quarter 2025 revenue is almost entirely derived from consulting services being provided to RoPower, a Romanian utility. Notably, NuScale Power only generated $1.4 million in revenue in the same quarter of the prior year, so there was a huge uptick in activity.
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That's important because NuScale Power isn't a consulting firm. It is attempting to build a business around manufacturing and selling small modular nuclear reactors, or SMRs. The benefits offered by SMRs compared to large, site-built nuclear reactors are many. Factory-constructed SMRs are expected to be less costly, relatively easy to transport to where they are needed, located closer to population centers, and safer to operate. It is a compelling opportunity, and NuScale Power is well along in the process of selling an SMR.
However, it hasn't sold one yet. RoPower is its first potential customer, and NuScale Power's revenue is ied to the final studies RoPower is conducting as it makes the go/no go decision. That decision is currently expected to be finalized in the first half of 2026.
Wall Street has high hopes, and so does NuScale Power
The 52-week high for NuScale Power's stock is roughly $45. The shares have pulled back a little from that price but are still up notably over the past year. To put a number on that, the stack has rallied more than 300% over the past 12 months. So, the real question here is whether or not NuScale Power is worth buying after a big rally that has pushed the stock to 52-week and all-time highs.
NuScale Power is quite optimistic about its future, which isn't surprising. But it is putting its money where its mouth is, having pre-ordered parts for the six SMRs that will be needed if the RoPower project gets the green light. But that's not all; it has also ordered parts for six additional reactors. These parts are ones that require long lead times to produce. It wouldn't make financial sense to do so unless NuScale Power was fairly confident that it would get 12 SMR orders sometime in the very near future.
Given the swift stock price advance, it seems like Wall Street is fairly positive, too. That, interestingly enough, has been an assist to NuScale Power, which raised roughly $100 million in capital via stock sales in the first quarter. That will dilute current shareholders, of course, but the extra cash should help the company survive until the point when it has its first official customer lined up. Once it has that agreement in place, the next customers are likely to be easier to sign up.
There's a lot riding on RoPower
Investors are likely pricing in a lot of good news, with NuScale Power's shares trading near their all-time highs. Aggressive investors might be willing to pay up now for the long-term opportunity that this upstart nuclear power company offers. However, most will probably be better off waiting until there's more clarity on the first SMR sale.
Indeed, if the RoPower sale falls through, the stock would likely fall, perhaps in a material way. Assuming the opportunity for SMRs is as big as it seems, holding off until NuScale Power has reached the key milestone of selling its first SMR will probably still leave investors with a huge long-term opportunity.
