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

SpaceX is expected to go public this summer at a potential $1.75 trillion valuation, with up to 30% of shares reserved for retail investors. The article argues that SpaceX's AI-related data center ambitions could spotlight the energy-intensive nature of AI workloads and indirectly benefit NuScale Power's small modular reactor strategy. The piece is more of a thematic investment argument than a direct catalyst, so the likely market impact is limited.

Analysis

The real tradeable signal is not SpaceX itself but the market’s renewed willingness to pay for any credible path to baseload power that can scale behind AI demand. That tends to compress the valuation gap between speculative nuclear developers and the broader clean-energy basket, but the benefit is asymmetric: pre-revenue SMR names can rerate on narrative, while utility-linked nuclear infrastructure, fuel-cycle, and engineering suppliers capture the more durable second-order spend. The near-term winner is attention, not cash flow, which means the move can outrun fundamentals for weeks or months before project timelines matter.

The second-order risk is that this becomes a crowded “AI power” reflex trade. If investors push too hard into SMR on headline momentum, the stock can underperform the broader energy/utility complex once the market re-centers on execution, permitting, and financing dilution. The key gating variable is not whether AI needs more power, but whether capital markets are willing to fund multi-year infrastructure at acceptable returns; if rates back up or the IPO enthusiasm fades, the multiple expansion can reverse quickly.

Contrarian view: the more likely beneficiary may be the picks-and-shovels layer around nuclear commercialization rather than the reactor developers themselves. Engineering, components, grid interconnection, and uranium enrichment names have more immediate revenue visibility and less binary regulatory risk. If SpaceX’s IPO reinforces the scarcity of power, it could also lift the entire nuclear supply chain, not just SMR, because investors will seek cleaner execution paths with existing contract backlogs and shorter monetization cycles.

Key Decisions for Investors

• Tactically long SMR into IPO-season attention, but size small and use a 4-8 week horizon; treat this as a sentiment trade with high upside convexity and sharp gap-risk on dilution or execution headlines.
• Pair trade: long nuclear picks-and-shovels / short SMR for 3-6 months if the goal is cleaner fundamentals; the long leg should have contract-backed revenue and lower financing risk, while the short leg captures narrative overextension.
• Buy call spreads on SMR rather than outright equity if entering pre-IPO hype; spreads cap premium decay and express the view that attention can lift the stock without relying on a full-duration rerating.
• Add an alert for any surge in rate volatility or risk-off tape; those are the most likely catalysts to break the trade as long-duration, pre-cash-flow names de-rate first.