NuScale Power (NYSE: SMR) is not for the risk-averse. The nuclear start-up is still deep in the red and likely will be for years. But for investors willing to take a gamble, the company’s position in the small modular reactor (SMR) space could be a major long-term opportunity.
A New Approach to Nuclear Energy
Traditional nuclear power plants are notorious for their high costs, long build times, and frequent overruns. The most recent examples, Vogtle Units 3 and 4 in Georgia, were nearly a decade late and cost double their initial projections. That kind of risk has made large-scale nuclear projects difficult to justify.
NuScale Power is taking a different path. Instead of massive, custom-built plants, it plans to manufacture small modular reactors in a controlled factory setting. This offers several advantages:
- More precise construction, reducing cost overruns and delays.
- Standardized manufacturing, allowing for streamlined supply chains and economies of scale.
- Faster deployment, with pre-assembled units cutting down installation times.
Beyond efficiency, NuScale’s reactors are designed to be flexible. Multiple units can be linked to form a larger power station, or a single module can provide dedicated power to an industrial facility or data center. That adaptability makes its business model particularly compelling in an era where demand for reliable, clean energy is surging.
Leveraging Proven Technology
Some competitors in the SMR space are betting on unproven fuel technologies, which could take years—if not decades—to commercialize. NuScale Power, on the other hand, is building off existing, well-understood nuclear technology. That gives it a distinct advantage.
The key benefit? NuScale isn’t waiting for an entirely new supply chain to emerge. Many of the materials and components it needs are already in production. While the company’s technology may seem like an incremental improvement rather than a revolutionary breakthrough, that’s precisely what makes it a viable near-term investment. It’s an evolution rather than an experiment.
The timeline is also important. NuScale aims to deploy its first SMR by the end of the decade, while some competing technologies could take well over 10 years to reach commercial viability. With global energy demand rising and interest in nuclear energy growing, being first to market could make all the difference.
Key Approval Could Change the Game
While NuScale Power has already secured approval from the U.S. Nuclear Regulatory Commission (NRC) for its SMR design, its real test is securing its first major customer. That moment could come later this year.
A proposed nuclear power plant in Romania, featuring six NuScale SMRs, is awaiting final approval in the fourth quarter of 2025. If greenlit, it would be the first commercial deployment of the company’s technology and could open the floodgates for additional deals.
NuScale isn’t just waiting for approval; it’s already started building critical components. That means it can hit the ground running if the project moves forward. While there are no guarantees, the progress so far suggests the company could be at a crucial turning point.
A Risky but Intriguing Investment
NuScale Power is still a speculative bet. It has yet to turn a profit, and its success hinges on securing customers willing to take a chance on its technology. The stock is volatile, with a 52-week range from $3.79 to $32.30—clear evidence of investor uncertainty.
Yet, the pieces are falling into place. The company has a first-mover advantage, a promising business model, and growing interest in nuclear power as a clean energy solution. If its Romania project moves forward, NuScale could shift from a high-risk concept to a viable industry leader. For aggressive investors, the potential rewards might outweigh the risks.
