NuScale Power (NYSE: SMR) is a pioneering nuclear energy company aiming to revolutionize multiple aspects of the industry, including the construction of nuclear power plants and the locations where power is generated. At its core, the company hopes to design small modular reactors (SMRs) that can be mass-produced in a factory setting.
If successful, NuScale could tap into what Bank of America (NYSE: BAC) describes as a $10 trillion market opportunity in nuclear energy. This could position the company as one of the most significant energy providers of the century.
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Despite its promising outlook, NuScale’s stock has plummeted over 75% since reaching record highs in October 2025. It currently trades below $13, presenting an intriguing opportunity for potential investors to evaluate its worthiness as a buy.
Consider a two-lane road built in the 1960s. For years, it effectively managed local traffic; however, with the area recently transformed into a logistics hub, heavy trucks now frequent the road. Originally not designed for such industrial use, the road starts to show signs of wear, necessitating significant repairs and expansion.
This analogy reflects the current challenges facing the U.S. power grid, much of which was established in the 1950s and 1960s. Back then, the grid met the demands of consumer appliances, but it is now increasingly stressed by the rise of artificial intelligence data centers and cloud computing. Without significant updates, the system is on the brink of collapse.
NuScale Power aims to take a different approach than merely expanding the grid’s power generation. Instead, it plans to develop SMR plants for on-site power generation. This would allow, for instance, the construction of SMRs near data centers or industrial zones, providing localized energy solutions.
While NuScale does not exclude utilities from its customer base—Tennessee Valley Authority (TVA) being a potential early client—it also empowers customers to generate their own power close to their needs. This broadens its target audience to include data centers, industrial firms, mining operations, and governmental entities.
While NuScale’s SMR technology promises a wide range of customers, it’s important to note that the company currently lacks firm sales; it hasn’t secured an SMR project yet and is not generating revenue from SMR plants.
Moreover, NuScale is unlikely to see substantial revenue from sales for another two years. Even then, profitability remains uncertain, as illustrated in the chart below.
This places NuScale in a precarious position. As the only nuclear energy company in the U.S. with an approved SMR design from the Nuclear Regulatory Commission, it holds a significant advantage. However, its technology remains untested, and many may hesitate to be the first to try it. Additionally, uncertainties surrounding the cost of an SMR plant were highlighted by the cancellation of NuScale’s “Carbon Free Power Project” in Idaho.
Thus, while NuScale embodies tremendous potential, it bears considerable risk. Aggressive investors who believe in the future of nuclear energy may find it appealing to invest while the stock is priced under $20. Conversely, those with a lower risk appetite might prefer exploring a nuclear energy exchange-traded fund (ETF) to align with their investment strategy.
Before making a decision on NuScale Power stock, reflect on the following:
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Bank of America is an advertising partner of Motley Fool Money. Steven Porrello holds no position in any of the stocks mentioned. The Motley Fool recommends NuScale Power and has a disclosure policy.
Should You Buy NuScale Power While It’s Below $20? was originally published by The Motley Fool
