NuScale Power (SMR +1.70%) wants you to believe the adage that good things can come in small packages.
The company focuses on small modular nuclear reactors (SMRs) designed for various uses, including powering data centers and desalination plants. It's scheduled to report fourth-quarter results after the markets close Thursday.
NuScale's shares are down more than 33% over the past 12 months and more than 11% so far in 2026 -- but there are three key reasons I think this stock is a solid long-term buy prior to its earnings report.
NYSE: SMR
Key Data Points
1. First-to-market advantage
While there are other companies in the small modular nuclear reactor (SMR) space, including Oklo and TerraPower, only NuScale has had an SMR approved by the U.S. Nuclear Regulatory Commission.
The commission has approved two of NuScale's SMR designs. The first, a 50 megawatt (MW) design, was approved in 2023. The second, a 77 MW design, was approved in May 2025.
NuScale's Power Modules can be scaled, through a configuration of up to 12 modules, to supply up to 924 MW, enough to power a city the size of San Francisco or Seattle, and certainly enough to power a large hyperscale data center. Unlike wind- or solar-powered plants, small nuclear reactors can provide consistent power regardless of weather conditions.
Large-scale nuclear power reactors are incredibly expensive to build, which is why none are currently under construction in the U.S. The last ones built, Units 3 and 4 at Plant Vogtle in Waynesboro, Georgia, cost $36.8 billion -- more than $20 billion over budget. It took 15 years to build the project, which was completed in 2024.
SMRs are considered the future of nuclear power, as they promise greater site and size flexibility and cost savings relative to output compared to traditional large-scale nuclear reactors. With their factory-built modular formats, they can be built more efficiently than custom-designed large nuclear reactors.
2. Any bad news is already baked into the stock price
NuScale Power hasn't turned a profit since it went public in 2022 through a reverse merger with a special purpose acquisition company (SPAC), and nobody expects it to anytime soon. So, when the company reports fourth-quarter numbers, the bottom line won't be a concern.
Investors will, however, be looking for any positive news on potential contracts. Anything along those lines would likely give NuScale's shares a boost. Many investors may not know, for example, that Romanian nuclear provider Nuclearelectrica agreed on Feb. 13 to have NuScale provide an SMR in Doicești, Romania. The project is expected to cost $6 billion to $7 billion.
3. It doesn't take that much to move the needle
NuScale's market cap is only $3.8 billion, which means its shares can move sharply up or down based on relatively smaller catalysts. In January, the stock rose by more than 23% after the House of Representatives Energy Subcommittee held hearings on nuclear power. President Donald Trump's push for more nuclear energy with fewer regulations should also make it easier for NuScale to grow its business.
On Feb. 21, a small nuclear reactor, minus nuclear fuel, was airlifted from California to Hill Air Force Base in Layden, Utah. That was a test to demonstrate the potential to quickly deploy nuclear power for a variety of uses, including military and civilian applications.
The signs are all around that SMRs may be an answer for a multitude of energy needs, and NuScale is well placed to benefit.
