Investing in Nuclear Power? I Like Nuscale Power Stock, Up 213% in 2025

NuScale Power (NYSE: SMR) has seen its stock more than triple this year, driven by rapidly increasing demand for small modular reactors (SMRs) from energy-intensive sectors like artificial intelligence. The company holds a significant first-mover advantage as the sole developer with U.S. Nuclear Regulatory Commission (NRC) certified SMR designs (50 MW and 77 MW models), and management anticipates securing its first commercial order within months. While NuScale is 1-3 years ahead of competitors in certification and has a dozen reactors under construction, investors should consider the long project timelines, with construction for new orders not expected to complete until 2030 at the earliest, which could influence the pace of demand realization.

Analysis

NuScale Power (NYSE: SMR) has emerged as a key player in the small modular reactor (SMR) space, with its stock price tripling this year on the back of rising energy demand from power-intensive sectors like artificial intelligence. The company's primary competitive advantage is its regulatory lead, holding the first and only SMR designs (a 50 MW and a 77 MW model) certified by the U.S. Nuclear Regulatory Commission. This positions NuScale an estimated one to three years ahead of competitors such as Oklo. Management anticipates a pivotal catalyst within the next 90 days, with the expectation of securing its first commercial order by December, supported by a dozen reactors already under construction. However, significant long-term risks persist. Even with an order in 2025, a fully operational facility is not projected for completion until 2030 at the earliest. This extended timeline from order to revenue-generating operation introduces substantial execution risk and may temper broader demand in the interim, a key consideration for a company with a market capitalization of approximately $10 billion following its recent rally.

Key Decisions for Investors

• Consider NuScale as a speculative, long-term holding to gain pure-play exposure to the SMR market, leveraging its certified first-mover advantage and the secular tailwind of AI-driven energy demand.
• Investors should closely monitor the company's ability to secure its first commercial order by the year-end target, as this is a critical de-risking catalyst needed to validate its commercialization strategy and support the current valuation.
• Be mindful of the substantial execution risk and potential for share price volatility associated with the long project timelines, as a fully functioning use case is not anticipated for at least five years.