• Shares in NuScale have surged over 200% in the past year.
• The company’s small modular reactors could become a cornerstone of clean energy infrastructure.
• It has minimal revenue and no commercial deployments but has a certified design, a cash cushion of half a billion dollars and modules already in production.
• At 54x sales, the stock reflects high expectations.

NuScale Power (SMR) has yet to deploy a single reactor, but that hasn’t stopped investors from taking notice. The company’s stock has surged nearly 200% over the past 52 weeks, fueled by rising interest in nuclear energy and a growing recognition that small modular reactors (SMRs) could help meet the world’s next wave of clean energy demand from AI-driven data centers and industrial expansion.

NuScale’s story remains largely one of potential. As the only U.S.-based SMR developer with a certified design and modules already in production, the company stands at the forefront of a nascent but rapidly evolving sector. For those who believe nuclear power will play a central role in the energy future, the company’s stock offers one of the most compelling high-risk, high-reward opportunities. 

Why NuScale is leading the SMR race

NuScale remains one of the most closely watched players in the nuclear energy sector, not because it’s already transforming the grid but because it might. The Oregon-based company, was founded to commercialize SMR technology and has positioned itself as a first-mover in a potentially game-changing corner of the energy business. Its flagship product, the NuScale Power Module, is designed to deliver scalable, zero-emission nuclear power. It takes up only a fraction of space needed for today’s plants — a vision that resonates in an era of AI-driven demand for energy and decarbonization goals.

SMRs promise a safer, more flexible approach to nuclear power, and NuScale has arguably done more than any other U.S. company to move the idea toward reality. It was the first to receive design approval from the US Nuclear Regulatory Commission (NRC), and it continues to lead in regulatory and manufacturing readiness. Partnerships with major players like Fluor (FLR) and South Korea-based Doosan have bolstered the company’s credibility, while continuing developments at Romania’s Doicești power plant represent provide a real-world testing ground for NuScale’s commercial viability.

After a strong rally in 2024, shares in NuScale faced headwinds in early 2025, weighed down by shifting sentiment around energy-intensive AI projections and a disappointing earnings print. However, shares have since regained momentum, rising 35% year to date. This renewed optimism appears to reflect a broader reappraisal of the company’s long-term prospects, particularly as governments and tech giants alike begin to revisit nuclear power as a serious approach to their needs.

The company continues to make strategic strides. In May 2025, NuScale announced it expects NRC approval for its uprated 77 MWe reactor design by July, a milestone that could unlock new commercial opportunities. The company is also in advanced discussions with hyperscalers, government officials and commercial enterprises in the US and around the globe, signaling growing interest in its SMR technology.

Still, the path forward won’t be easy. The cancellation of the Carbon Free Power Project (CFPP) remains a cautionary tale, highlighting the gap between engineering ambition and economic reality. And while NuScale has entered talks with data center operators and international utilities, questions persist around cost competitiveness, deployment timelines and the company’s ability to scale.

Earnings are scant, but cash cushion is robust

NuScale entered 2025 with momentum, but its first-quarter results underscore a key reality: this is still a pre-revenue energy story. For the quarter ending March 31, the company reported modest revenue of $13.4 million, but that was up sharply from just $1.4 million a year earlier. That growth was driven primarily by its continuing work on Romania’s RoPower project, where payments tied to the FEED Phase 2 study provided a meaningful boost. Operating expenses decreased slightly to $42.3 million, leading to a narrower operating loss of $35.3 million — a slight improvement that reflects the company’s gradual transition from R&D mode to early-stage commercialization.

The more important headline, however, is liquidity. Thanks to a successful at-the-market share offering in Q1 — raising over $102 million — NuScale ended the quarter with $521 million in cash and short-term investments, with no long-term debt. That financial cushion is critical, considering the company does not expect material revenue from module sales until it secures a firm customer order, something it aims to do in the next six to nine months. Until then, the company is relying on cash reserves and strategic progress to maintain investor confidence.

CEO John Hopkins highlighted this inflection point on the Q1 earnings call: “NuScale has built a solid foundation across our business, and we are excited for the opportunities ahead of us this year as we look to bring reliable, 24/7 carbon-free energy to market.” He added that the company is in “advanced dialogue” with tech companies, utilities and energy customers globally, including discussions tied to long-term power purchase agreements (PPAs) seen as a precursor to deployments.

One encouraging sign is NuScale is already manufacturing long-lead products, with 12 modules in production through its partner Doosan Enerbility. This indicates a level of preparedness uncommon in early-stage energy tech. Still, without signed contracts, the company’s cash flow remains entirely dependent on project-based milestone payments — chiefly from RoPower — and continued investor support. As Robert Hamady, chief financial officer, noted, “Positive cash flow from module sales will begin once we close our first deployment agreement.”

In short, the financial runway appears solid for now, but the pressure is mounting. If NuScale can convert one of its advanced discussions into a signed, revenue-generating agreement, it will have cleared a critical hurdle. Until then, investors are essentially underwriting a bridge between engineering credibility and commercial validation.

A high-risk bet on nuclear power

NuScale’s valuation is undeniably steep —at least on paper. With a trailing 12-month price-to-sales (P/S) ratio of 54, the company trades at a staggering premium to the industrial sector median of just 1.5. Its price-to-book (P/B) ratio sits at 4.8, also elevated vs. the sector’s 2.9 benchmark. And given that the company is not expected to post positive earnings until after 2030, some traditional P/E metrics are essentially irrelevant for the time being. For many investors, these figures represent a speculative name priced well ahead of fundamentals.

On the other hand, some investors are clearly embracing the bright side. Unlike traditional energy or industrial companies, NuScale is valued less on what it is today and more on what it might become. As the only US small modular reactor company with a certified design from the Nuclear Regulatory Commission — and one already manufacturing long-lead modules — the company occupies a small niche within the broader energy market. Moreover, if it can secure commercial contracts and begin deploying modules by its 2030 target, its high revenue multiples could compress to more palatable levels.

For now, though, the story is still unfolding. The company’s Q1 revenue came in at just $13.4 million, and full-year estimates for 2025 remain modest. Without customer deployments or material cash flow from its core product, NuScale is essentially a long-duration asset priced on anticipated adoption of its technology. This makes its valuation highly sensitive to execution, timing and policy sentiment.

Still, there are reasons for measured optimism. Of the 11 analysts covering NuScale, seven rate the stock a “buy” or “overweight,” with only one assigning a “sell.” The average price target sits at $25 per share, roughly where the stock trades today. That suggests the Street sees limited short-term upside, but continues to view the company’s long-term prospects favorably — assuming it can turn regulatory milestones and engineering progress into real-world deployments.

Investment takeaways

In many ways, NuScale Power is less a bet on a single company than it is a binary wager on the future of nuclear energy. Its valuation reflects ambition more than performance — a bold belief that small modular reactors can evolve from prototypes into mainstream energy producers, capable of powering the next wave of data centers, meeting industrial demand and abiding by decarbonization mandates. For investors who believe in that trajectory, the company offers a rare early-stage opportunity: A capitalized, technically advanced first-mover in a sector with massive long-term potential.

But make no mistake — this remains a speculative story. NuScale is still pre-revenue from commercial deployments, and its path forward hinges on locking in contracts, scaling production and clearing regulatory hurdles. The company has made progress on all three fronts, but the true commercial inflection point may not come until 2026 or later.

Investors also have alternatives in the emerging SMR business. Oklo (OKLO), a rival nuclear startup backed by OpenAI’s Sam Altman, has seen its stock climb roughly 80% this year. While it remains an earlier stage of development than NuScale, the company is generating buzz surrounding its novel reactor design. Meanwhile, high-profile support has added momentum to the broader nuclear narrative.

Ultimately, NuScale’s investment case is less about quarterly results and more about long-term conviction. If SMRs deliver on their promise, the company could become a foundational player in the clean energy transition. If not, today’s lofty valuation — built on potential — won’t be sustainable. Either way, the next few years will be decisive, not just for the company but also for the future of nuclear innovation as a scalable approach to dealing with climate change.

Andrew Prochnow, Luckbox analyst-at-large, has traded the global financial markets for more than 15 years, including 10 years as a professional options trader.

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