Investors have piled into nuclear energy stocks, and for good reason. Over the past few years, countries worldwide have committed to tripling their nuclear energy capacity in the coming decades to meet growing energy needs while reducing carbon emissions. Nuclear energy is a reliable baseload power source, and some start-ups are developing technologies that could make small-scale nuclear power readily available for data centers and industrial warehouses.
NuScale Power (SMR 2.99%) is one such company. The company's stock price surged in 2025, but it has since fallen by 64% and could fall further in the coming months. Here's why.
NYSE: SMR
Key Data Points
NuScale and Fluor are collaborating on deploying small modular reactors
NuScale Power develops small modular reactors (SMRs), compact nuclear reactors designed for scalable, lower-cost development compared with traditional reactors. These SMRs could provide reliable, carbon-free baseload power for utilities, industrial uses, and data centers. Currently, NuScale is the only company to have an SMR design certified by the U.S. Nuclear Regulatory Commission.
Fluor (FLR 3.41%) provides engineering and construction services for large-scale energy, infrastructure, and industrial projects and has been an investor in NuScale for 14 years, supporting the company's development of SMR technology. It is collaborating with NuScale on its standard plant design and providing its expertise to the emerging nuclear company.
NYSE: FLR
Key Data Points
Currently, the companies are developing a project in Romania called RoPower, with Fluor serving as the prime contractor for the phase 2 Front-End Engineering and Design study. As part of this project, NuScale and Fluor plan to deploy a six-module SMR with a total capacity of 462 megawatts at a decommissioned coal power plant site.
Fluor is selling its stake in NuScale, which could put pressure on the stock
Fluor is a major investor in NuScale Power. However, NuScale's stock has increased significantly since its initial investment, and it will likely be years before NuScale's SMR technology is commercially operational. NuScale went public in May 2022 at roughly $10 per share. The stock experienced a meteoric rise, reaching a high of $57 per share last year, and Fluor capitalized on this by selling part of its stake at an average price of approximately $40 per share for a total of $605 million in proceeds last October.
Image source: Getty Images.
But that's not the last of it. In November, the company announced it would monetize its remaining stake in NuScale. At the time, Fluor held 111 million Class B units, or about 39% of NuScale's total equity. Fluor will convert these Class B units into Class A common shares and expects to complete the exit by the end of the second quarter this year, which could continue to put downward pressure on the stock price.
SMR data by YCharts. TTM = trailing 12 months.
Given NuScale's significant increase over the past year, it makes sense that Fluor would want to monetize its position and strengthen its capital structure. After all, NuScale's first commercial power plant in Romania, if approved to move forward this year, is not expected to be operational until around 2030. Fluor intends to invest these proceeds into a stock repurchase program and other investments.
An important lesson about speculative stocks
NuScale Power is an intriguing start-up in the nuclear space that could benefit from long-term trends in the energy landscape and global nuclear expansion. I think it's a stock worth keeping on a watch list and tracking in the coming years as its SMR technology comes online, but it's still speculative and story-driven right now, with no cash flows to back it.
For investors, this is an important reminder to be careful about the stocks you own, especially speculative, pre-revenue start-ups in any industry. NuScale Power's stock has fallen 64% from its October peak, highlighting the risks associated with holding pre-revenue companies, especially when a major stakeholder seeks to capitalize on the stock's impressive run.
