Is NuScale Power a Future Leader in Nuclear Energy?

TipsForTraders | June 18, 2024

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  • Global clean energy shift boosts nuclear power demand
  • NuScale Power sees significant stock surge despite volatility
  • Analysts optimistic but caution high-risk investment


As the global quest for sustainable energy solutions intensifies, nuclear energy stocks are increasingly in the spotlight, with NuScale Power (SMR) leading the charge. This company, pivotal in the transition towards greener energy, has demonstrated significant market movements in 2024, captivating investors and analysts alike. With the ongoing shift to cleaner energy sources, nuclear power is poised for substantial growth over the next several years.

NuScale Power, a pioneer in modular nuclear technology, operates at the forefront of this sector. The company’s innovative approach with the NuScale Power Module (NPM), which produces 77 megawatts of electricity, addresses diverse energy needs including electrical generation and hydrogen production. Founded in 2007 and making its public debut in 2022, NuScale has experienced its share of market fluctuations. Despite a notable decline in 2023, the stock rebounded with an impressive surge of nearly 150% in 2024, bringing its market cap to approximately $1.99 billion.

However, investing in NuScale remains a speculative venture. The company’s efforts are largely focused on commercializing its groundbreaking technology. Although it currently derives revenue from engineering and licensing services, NuScale anticipates a breakthrough in commercial deployment soon. Notably, the company boasts a robust financial foundation, free from debt, and has been successful in securing new orders and advancing revenue-generating projects.

The geopolitical landscape has also played a role in bolstering nuclear stocks. The recent U.S. legislation that prohibits uranium imports from Russia, coupled with a $2.7 billion government investment aimed at augmenting domestic nuclear fuel production, has created a favorable environment for firms like NuScale.

Investor sentiment remains buoyant regarding NuScale’s prospects. The company’s small modular reactor technology, the only such innovation certified by the U.S. Nuclear Regulatory Commission, stands to potentially accelerate its market penetration. Recently, NuScale inked a significant deal with Standard Power to develop facilities projected to generate two gigawatts of clean energy, sufficient to power 1.5 million homes.

Financial forecasts are optimistic, with revenue expected to increase from $22.8 million in 2023 to $63 million in 2024, and projections of reaching $132.3 million by 2025. Despite these positive trends, the company’s path to profitability is marked by expected reductions in losses per share from $0.80 in 2023 to $0.37 by 2025. With $132 million in cash reserves, NuScale appears well-equipped to manage its financial obligations in the near term.

The analyst community reflects a predominantly positive outlook. Out of six analysts covering the stock, four advocate a “strong buy,” one recommends holding, and one views it as a “strong sell.” The consensus 12-month target price for SMR is set at $8.90, mirroring its recent trading price, with the most optimistic scenario suggesting a target price of $14, indicating a potential 71% increase.

Key Takeaways:

  • Market Dynamics: NuScale’s market position has dramatically improved in 2024, supported by legislative changes and heightened investor interest in clean energy.
  • Technological Edge: NuScale’s certification and innovative modular technology may lead to significant expansion and competitive advantage in the nuclear energy sector.
  • Financial Outlook: Increasing revenues and a manageable cash burn signal potential for growth, though the journey toward profitability remains critical to watch.


NuScale Power represents a compelling, albeit high-risk, opportunity in the nuclear energy market. Its pioneering technology, strategic partnerships, and strengthening financials suggest a promising horizon. However, potential investors should consider the inherent risks associated with the commercialization of new technologies and market volatility. As the world gravitates more towards sustainable energy solutions, NuScale could be at the cusp of redefining the future energy landscape, making it a stock to watch closely in the coming years.