At this time last year, investors were feeling pretty good about NuScale Power (SMR +0.95%). President Donald Trump signed executive orders on May 23 to usher in a nuclear energy renaissance, and advanced nuclear energy stocks like NuScale Power soared.
But the enthusiasm was short-lived. The company soon tumbled, and as of this writing, shares are down more than 62% over the past year. Although the market has soured on NuScale's prospects, times like these offer patient investors great buying opportunities.
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The bumps in the road are hardly insurmountable
A brief look at the previous year's performance of NuScale Power stock may suggest to some that the company had endured some disaster. The reality is that the catalysts for the decline were hardly ruinous.
For one, the company filed to sell up to $500 million in stock to raise capital -- unsurprising for a growth company that doesn't generate substantial revenue. Plus, it reported 2025 revenue of $31.5 million, down from $37 million in 2024.
NYSE: SMR
Key Data Points
Aside from fears of shareholder dilution and a year-over-year decline in revenue, the future remains bright for NuScale.
Unlike its peers, the company is the only developer of small modular reactors that has received design approvals (for both its 50-megawatt and 77-megawatt models) from the U.S. Nuclear Regulatory Commission (NRC). According to John Hopkins, the company's CEO, this provides a "critical gateway to commercial operations."
With data center operators highly motivated to find solutions to the huge power demands AI computing is placing on their facilities, the company offers a more viable option because its designs have already received NRC approval.
Is NuScale Power stock right for you?
NuScale Power's stock has plunged over the past year following its capital raise and disappointing financial results, which is largely unsurprising -- this sort of volatility is part and parcel of investing in growth companies such as this one. For those who can endure the volatility, now is a great time to click the buy button on this nuclear energy stock.
