NuScale Power (SMR 6.95%) is a nuclear energy company trying to change several things at once, from how nuclear power plants are built to where power is generated. In simplest terms, it wants to build small modular reactors (SMRs) that can be mass-produced in a factory.
If it succeeds, it could unlock what Bank of America (BAC 1.59%) is calling a $10 trillion market opportunity in nuclear energy, possibly becoming one of the most important energy companies of the century.
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Despite this potential, NuScale's stock has fallen over 75% since hitting all-time highs in October 2025. It currently trades below $13, making this an ideal moment to reflect on whether it's worth buying.
NYSE: SMR
Key Data Points
The power grid problem and how NuScale can fix it
Imagine, for a second, a two-lane road that was built in the 1960s. For years, this road handled local traffic just fine. Then, almost overnight, the area became a logistics hub, and now heavily freighted semi-trailer trucks use it everyday. Since the road wasn't designed with industrial use in mind, it starts to get alligator cracks, eventually needing to be widened and repaved.
This briefly illustrates the current power grid problem in the U.S. Much of it was built in the 1950s and 1960s, when television, refrigerators, and other "new" consumer appliances caused a boom in electrification efforts. For a time, the grid provided what was needed, but today it's being dangerously strained by the expansion of artificial intelligence data centers and cloud computing. It's only a matter of time before the system reaches its utmost limits.
In the example above, the road is widened and repaved. But here's where NuScale Power diverges slightly from a traditional fix: It doesn't just want to add new power generation to a grid network. Rather, it wants to build SMR plants for on-site power generation. This would mean, for example, building SMRs near a data center, industrial hub, or other remote locations.
To be sure, NuScale isn't excluding utilities from its customer mix. Indeed, Tennessee Valley Authority (TVA) is one of its potential first clients. But rather than relying on the transmission system of a utility, NuScale will also enable customers to generate their own power close to where they need it. This opens its customer list to include data centers, industrial clients, mining sites, and even governments.
Plenty of potential customers, no firm sales yet
NuScale's SMR technology opens it up to a diverse mix of customers. But here's the kicker: It currently lacks a firm sale. It hasn't finalized an SMR project for a customer, nor is it generating revenue from an SMR power plant.
In fact, NuScale likely won't generate meaningful revenue from sales for two years. Even then, it might not even be profitable, as the chart below suggests.
Data by YCharts
That puts NuScale is an uncomfortable position. It's currently the only nuclear energy company in the U.S. with an SMR design approved by the Nuclear Regulatory Commission -- a huge advantage. Yet, its technology is still unproven, and nobody wants to be the "first" to test it out. It's also unclear how much an SMR plant would cost, as the cancellation of NuScale's "Carbon Free Power Project" in Idaho demonstrated.
As such, NuScale carries massive potential and massive risk. Aggressive investors betting on a future of nuclear energy may want to buy while the stock is still under $20. Those with more risk aversion may find a nuclear energy exchange-traded fund (ETF) to better suit their philosophy.
