NuScale Power (SMR 2.10%) was one of the market's hottest stocks earlier in 2025. Before mid-October, the company had gained 200% on the year, driven by its first-mover advantage and its potential to power artificial intelligence (AI) data centers.
Since then, the nuclear stock's historic run has turned into a big loss. The stock was trading at about $57 at its peak. It now trades for roughly $14 -- a 75% decline from its all-time high. It's down 30% in December.
What's happening with NuScale, and is now the time to buy the dip?
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First-mover advantage means nothing without a first customer
NuScale wasn't the only nuclear company to plummet in mid-October. Oklo (OKLO 0.68%), Centrus Energy (LEU 2.46%), and Nano Nuclear Energy (NNE 4.82%) have all seen significant sell-offs amid larger concerns over an AI bubble. Out of this group of advanced nuclear companies, NuScale has been the worst-performing this year.
Here is how much a $10,000 investment earlier this year would be worth now in each of these four companies.
NuScale is currently the only U.S. reactor developer that has Nuclear Regulatory Commission design certification for a small modular reactor. On the other hand, the company has yet to ink its first major deal. While it has a potential first customer in Romanian company RoPower, the lack of a first sale has certainly weighed heavily on the company's valuation.
NuScale posted a larger-than-expected loss and net income of negative $532 million in its most recent quarter. On the bright side, it had about $754 million in cash and equivalents, though about $475 million came from selling 13.2 million in shares.
A big concern right now is share dilution. In mid-December, shareholders approved a measure to increase the number of authorized shares from 332 million to 662 million. Although approval doesn't mean new shares will be issued today, it gives NuScale the freedom to issue them if it needs fresh capital.
At this point, approach NuScale with caution: It could have growth potential if it gets a customer, but success isn't guaranteed.
