Prediction: NuScale Power Stock Is a Buy Before 2027 Due to This $1.75 Trillion Opportunity

SpaceX’s expected IPO at a potential $1.75 trillion valuation, with up to 30% of shares reserved for retail investors, is highlighted as a catalyst for renewed attention on energy-intensive AI infrastructure. The article argues this could benefit NuScale Power by spotlighting the need for scalable power solutions, especially small modular reactors, though the thesis is speculative and indirect. The piece is constructive on NuScale’s positioning but offers no new operational update or hard financial data.

Analysis

The market is likely overestimating the direct upside to SMR from a SpaceX listing and underestimating the signaling effect on the broader power stack. The real trade is not "SpaceX buys nuclear" but "the IPO expands investor attention on AI load growth, grid constraints, and the need for firm power," which can re-rate nuclear developers, uranium suppliers, and utility-scale infrastructure longer than the headlines last. That said, SMR remains a financing story first and a commercial execution story second, so any enthusiasm should be measured in months, not days.

Second-order winners are likely the names that monetize the theme without requiring perfect project execution. SMR can benefit from option value, but its equity is still vulnerable to dilution, permitting delays, and the gap between design approval and bankable deployments; the best asymmetry may sit in the supply chain and fuel cycle rather than pure developers. If the market starts pricing a multi-year buildout of SMRs and data-center adjacent firm power, companies with uranium leverage or nuclear services exposure should see a cleaner earnings transmission than SMR itself.

The contrarian view is that orbital data centers may be more narrative than capex reality, which means the attention spike could fade before fundamentals improve. If the AI power bottleneck is solved instead through gas turbines, grid upgrades, or on-site storage, SMR's relative upside compresses quickly. The key risk is that this becomes a "theme trade" with no near-term cash flow support, making it vulnerable to a 20-30% drawdown if rate expectations rise or if a few large financing milestones slip.

From a timing perspective, the best entry is likely after the IPO window, not into the initial hype, because implied enthusiasm tends to peak before hard capital is allocated. SMR may outperform on sentiment, but the cleaner expression may be a pair against a more valuation-sensitive industrial or AI beneficiary if the market gets carried away with the nuclear narrative. Investors should also watch whether the IPO actually references energy-intensive compute in underwriting materials; that would be the catalyst that turns this from a one-day headline into a multi-quarter factor.

Key Decisions for Investors

• Trade SMR tactically only: buy on post-IPO pullbacks or after a failed breakout, not into the initial hype; target 3-6 week momentum, but use a 15-20% stop because the stock can mean-revert hard if the narrative outruns execution.
• Prefer a basket approach over single-name SMR exposure: long SMR / long a uranium or nuclear services name if available in the portfolio universe, since the supply-chain beneficiary should convert theme attention into earnings faster than a pure developer.
• Avoid chasing the event directly via long-dated calls ahead of the IPO; implied volatility is likely to be expensive, and the payoff is asymmetric only if the market assigns real probability to large-scale SMR adoption within 12-24 months.
• If the market starts pricing nuclear as the only AI power solution, consider a relative-value short in a stretched AI infrastructure beneficiary versus long a nuclear exposure, because the energy narrative can reallocate multiples without changing total AI capex.
• Set a catalyst watchlist for post-IPO commentary on data-center power sourcing and capex plans; if those references are absent, fade the move in SMR on the view that the trade is sentiment-led rather than fundamentals-led.