In the current market landscape filled with unpredictability, one certainty remains: the world’s demand for energy is on the rise.
From 2025 to 2040, power consumption in the U.S. is projected to grow by 3.5% annually, largely due to the increasing demand from new artificial intelligence (AI) data centers, which are expected to add further pressure on the energy grid.
Could AI pave the way for the world’s first trillionaire? Recently, our team unveiled a report on a relatively unknown company identified as an “Indispensable Monopoly,” which supplies crucial technology needed by giants like Nvidia and Intel. Continue »
This brings us to NuScale Power (NYSE: SMR), a nuclear technology firm focused on developing small modular reactors (SMRs), which could potentially mitigate some of these challenges.
There are significant opportunities presented by this company, but it’s also important to note that the risks for investors are substantial.
While projections for the expansion of the nuclear energy sector vary, the prevailing expectation is that both private enterprises and governments will invest heavily in enhancing nuclear infrastructure.
In a report published in 2025, researchers from Morgan Stanley projected that investments in the nuclear value chain could increase to $2.2 trillion by 2050, up from an earlier $1.5 trillion forecast.
NuScale stands out as the sole company with SMR technology approved by the U.S. Nuclear Regulatory Commission, providing it with a competitive edge in a sector poised for substantial financial influx.
The theoretical advantages of SMRs include faster development, reduced costs, and enhanced flexibility in site selection due to their smaller footprint compared to traditional reactors.
However, it’s essential to mention that NuScale has not yet constructed any commercial reactors.
The company currently holds 788 patents, either granted or pending, across 21 countries, and it recently indicated that 12 modules are in production. Additionally, NuScale sees opportunities in strengthening domestic nuclear supply chains and shortening regulatory approval times.
For investors, the primary concern with NuScale is that its valuation is predominantly based on future expectations rather than current realities.
This isn’t unusual for a high-growth company, but this is particularly worrying for a company that has yet to launch its primary commercial product within a heavily regulated market.
While NuScale does generate some revenue from services and engineering fees, its $31.5 million revenue last year pales in comparison to its losses.
