The Only NRC-Certified SMR
NuScale Power holds a regulatory advantage that no competitor can quickly replicate. The NRC certification process for a new reactor design takes years and costs hundreds of millions of dollars. NuScale's 50 MWe module received certification in 2022 after a review that began in 2017. The more powerful 77 MWe module was approved in May 2025. A 12-module configuration (924 MWe) remains under review. No other SMR developer in the United States has completed this process. Companies like X-energy, Kairos Power, and TerraPower are years behind in the regulatory queue.
The VOYGR design uses light water reactor technology, the same fundamental approach used in the existing fleet of large nuclear plants, scaled down to modules that can be factory-built and shipped to sites. Each 77 MWe module uses passive safety systems that rely on natural circulation and gravity rather than pumps and external power. The modular approach means a utility can start with 4 modules (308 MWe) and add capacity incrementally up to 12 modules (924 MWe) at a single site. This scalability is particularly attractive for data center operators who need to match power supply to growing compute demand.
The Data Center Opportunity
AI training clusters consume enormous amounts of electricity. A single large-scale AI data center campus can require 500 MW to 1 GW of continuous power. Solar and wind provide intermittent supply. Natural gas meets baseload needs but produces carbon emissions. Nuclear is the only energy source that delivers 24/7 carbon-free electricity at the scale data centers require. This structural demand is driving interest in SMRs from technology companies that have committed to net-zero emissions targets.
The TVA and Entra1 Energy agreement represents the largest potential deployment for NuScale. The collaboration calls for up to 6 GW of NuScale SMR capacity across TVA's seven-state service region, specifically targeting AI data centers, semiconductor manufacturing, and energy-intensive industrial facilities. CEO John Hopkins told investors NuScale is aiming for hard contracts with two or three major customers by end of 2025, converting MOUs and framework agreements into binding commitments with defined timelines and payments.
Financial Performance
- •FY2024 Revenue: $37 million, up 62% from $22.8 million in 2023; revenue comes primarily from engineering services for Romania's RoPower project
- •Q3 2025 Revenue: Increased $7.8 million year-over-year, driven by RoPower FEED engineering work
- •Net Loss: $180 million in 2023; the company remains unprofitable as it invests in design certification and customer development
- •Stock Price Range: 52-week range of $11.08 to $57.42; peaked at all-time high $57.42 in October 2025; currently trading around $14
- •Revenue Composition: Nearly all revenue from engineering services; no commercial reactor revenue yet; first reactor delivery years away
- •Cash Burn: Significant ongoing operating losses as the company funds regulatory submissions, engineering staff, and business development
Growth Catalysts
- •AI Data Center Power Demand: AI training and inference require 24/7 carbon-free baseload power; SMRs are the only scalable nuclear option with regulatory approval in the U.S.
- •TVA/Entra1 6 GW Agreement: If converted to binding contracts, this single partnership could generate billions in long-term revenue across multiple sites
- •Romania RoPower Project: First international deployment advancing through FEED engineering; Nuclearelectrica made decision in principle to invest in 6-module plant (Feb 2026)
- •77 MWe NRC Approval: May 2025 certification of the more powerful module expands the addressable market; enables economically viable configurations for larger customers
- •Nuclear Renaissance: Global nuclear capacity set to grow 33%+ by 2035; governments are extending reactor lifetimes and ordering new builds for the first time in decades
Risks and Challenges
- •Pre-Revenue Reality: $37 million in annual revenue is almost entirely engineering services; commercial reactor sales are years away from generating meaningful cash flow
- •Stock Volatility: The stock dropped from $57 to $14 in four months, reflecting speculative positioning and sentiment sensitivity; nuclear enthusiasm cycles are brutal
- •Construction and Delivery Risk: No NuScale reactor has been built and operated; first-of-a-kind construction projects in nuclear have a history of delays and cost overruns (see Vogtle Units 3 and 4)
- •Competition Approaching: X-energy, Kairos Power, TerraPower, and GE-Hitachi are developing SMR designs; while behind NuScale in NRC certification, they could catch up within 3-5 years
- •UAMPS Cancellation Precedent: NuScale's first planned U.S. project (Idaho, with UAMPS) was cancelled in 2023 due to cost escalation; this raised concerns about SMR economics
- •Regulatory Timeline: Even with NRC certification, each deployment site requires separate licensing, environmental review, and construction permits, adding years to timelines
Competitive Landscape
NuScale's primary advantage is time. It holds the only NRC-certified SMR design. X-energy (backed by Dow Chemical and Amazon) is developing a high-temperature gas-cooled reactor (Xe-100) targeting NRC approval in the late 2020s. Kairos Power (backed by Google) is building a demonstration reactor in Tennessee using molten salt coolant. TerraPower (founded by Bill Gates) is constructing its Natrium sodium-cooled reactor in Wyoming. GE-Hitachi's BWRX-300 has received design certification in Canada and is pursuing NRC approval.
Each competitor uses a different reactor technology, and each faces the same fundamental challenge: no SMR has been commercially built and operated in the United States. NuScale's light water approach uses proven technology scaled to smaller size, which reduces technical risk compared to novel reactor designs. However, the UAMPS project cancellation demonstrated that NuScale's cost estimates may be optimistic. The competitive race will ultimately be decided by which company builds, delivers, and operates the first SMR on schedule and on budget. That milestone could define the industry for decades.
Who Is This Stock Suitable For?
Perfect For
- ✓Long-term investors who believe nuclear energy is essential for decarbonizing global electricity and powering AI data centers
- ✓Those comfortable with pre-revenue technology companies where the investment thesis depends on execution over 5-10 years
- ✓Investors who want the only publicly traded pure-play on NRC-certified small modular reactor technology
- ✓Speculators who can tolerate extreme price volatility ($11 to $57 range in 2025) and size positions accordingly
Less Suitable For
- ✗Income investors (no dividend, no buyback, cash is consumed by operations)
- ✗Value investors (traditional valuation metrics are irrelevant for a pre-commercial nuclear company)
- ✗Risk-averse investors uncomfortable with first-of-a-kind construction risk and regulatory uncertainty
- ✗Short-term traders (contract announcements are lumpy, and the stock can decline 75% between catalysts)
Investment Thesis
NuScale Power occupies a unique position in the energy transition. It holds the only NRC-certified small modular reactor design in the United States at a time when AI data center demand, decarbonization mandates, and grid reliability concerns are creating urgent need for new nuclear capacity. CEO John Hopkins has assembled a pipeline that includes TVA/Entra1 (6 GW), Romania RoPower, and additional prospects. The 77 MWe module's May 2025 NRC approval strengthened the commercial offering. Global nuclear capacity is set to grow 33%+ by 2035, providing a multi-decade tailwind.
The counterargument is equally straightforward: NuScale has $37 million in annual revenue, has never built a reactor, and its first planned U.S. project was cancelled. The stock fell from $57 to $14 in four months, demonstrating how quickly sentiment can shift. Nuclear construction has a well-documented history of cost overruns and delays. Competitors backed by Amazon, Google, and Bill Gates are developing alternative designs. NuScale is a high-conviction bet on the nuclear renaissance materializing and on this specific company capturing a meaningful share of it. Position sizing matters more than conviction.