Track market-moving stories before they get noisy

Key Takeaways NuScale's TVA program could deploy up to 6 gigawatts of nuclear capacity across multiple plants.Romania's six-module project offers SMR service revenue now and a larger equipment opportunity later.SMR ended first-quarter 2026 with $1 billion in liquidity, while revenues fell sharply year over year. NuScale Power Corporation (SMR - Free Report) sits at the center of rising interest in dependable, around-the-clock electricity. Its small modular reactor technology targets utility-scale power, industrial users and other customers with heavy electricity needs.

The opportunity is large, but still early. NuScale’s path depends on converting development programs into funded projects, customer commitments and executable construction plans.

NuScale’s TVA Program Could Redefine Its ScaleThe Tennessee Valley Authority and ENTRA1 Energy program is the biggest U.S. opportunity in NuScale’s pipeline. The plan covers up to 6 gigawatts of new nuclear capacity using NuScale Power Modules across multiple plants.

That scale matters because it could move NuScale from engineering and licensing work toward a broader commercial model. A finalized power-purchase agreement could lead to site-specific licensing, engineering services and a future equipment supply contract.

The program also could have effects beyond NuScale’s own revenue base. A large deployment schedule may encourage suppliers to expand capacity, support long-lead planning and make later projects easier to repeat.

Constellation Energy Corporation (CEG - Free Report) provides a useful industry reference point because investors are already focused on companies tied to reliable nuclear generation. Cameco Corporation (CCJ - Free Report) offers another point of comparison, as uranium and fuel-cycle readiness become more important to nuclear expansion.

SMR’s Romania Project Builds an International PathNuScale’s RoPower work in Romania gives the company a visible international development track. The planned plant in Doice??ti is expected to use six NuScale Power Modules at a former coal plant site.

The project is also important because it shows how NuScale can generate service revenue before reactor equipment is delivered. Earlier RoPower licensing and engineering work supported revenues in 2024 and 2025, even though the larger equipment opportunity remains tied to later milestones.

NuScale’s role is tied to reactor technology, design assistance and licensing support through Fluor’s work on the project. If financing is secured for the next phase, Romania could become a European reference point for future deployments.

Image Source: NuScale Power Corporation

NuScale’s Supply Chain Readiness Gains ImportanceNuScale is preparing for commercialization by focusing on fuel, manufacturing capacity and critical components. The company has expanded its supply chain partnership with Framatome across the United States and Europe to support fuel delivery.

Manufacturing readiness is also advancing through Doosan Enerbility, which has been producing key NuScale Power Module components. These steps matter because first-of-a-kind nuclear projects can be slowed by supplier bottlenecks and long-lead equipment needs.

NuScale ended the first quarter of 2026 with $1 billion in liquidity and capital resources. That balance-sheet position gives the company flexibility to support supplier commitments, design work and commercialization activities before larger project payments arrive.

SMR’s Nuclear Trend Still Faces Funding FrictionThe demand narrative around small modular reactors is favorable, but deployment remains the harder test. Large nuclear developments require financing, customer commitments, site-specific licensing and coordinated construction planning.

NuScale’s own results show the uneven path. First-quarter 2026 revenues fell to $565,000 from $13.4 million a year earlier, mainly because prior RoPower licensing and engineering activity did not recur.

Cash usage and dilution remain investor concerns. NuScale sold 3.2 million Class A shares through its at-the-market program in the first quarter of 2026, generating $37.9 million in gross proceeds after a larger equity raise in 2025.

NuScale’s Scores Temper the Emerging-Trend StoryNuScale’s long-term positioning in nuclear power remains notable, but the stock’s near-term profile is less favorable. The company is still working to turn development programs into recurring service revenues, equipment orders and future module deliveries. Reflecting these execution and commercialization challenges, NuScale shares are down 82.9% over the past year.

Image Source: Zacks Investment Research

SMR currently carries a Zacks Rank #4 (Sell). That rank warns that participation in a promising industry theme does not, by itself, make the stock attractive for the next one to three months.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Style Scores send a mixed message. SMR has a Momentum Score of B, but its Value Score of F, Growth Score of F and VGM Score of F point to weaker characteristics across valuation, growth and the combined style framework.

For investors, the distinction is important. NuScale may benefit from the broader push for reliable nuclear power, but present financial quality, project timing and estimate trends still argue for caution.

Less than a year ago, NuScale Power (SMR +0.11%) was the poster child of the artificial intelligence (AI) energy craze. The nuclear energy stock catapulted to an all-time high of $57.42 on Oct. 16, 2025.

The rally, however, fizzled out even faster than it built up, with NuScale shares slumping 61% in just the last quarter of 2025 and failing to recover since. The stock has now fallen 75% in one year and is trading below $10 as of this writing.

Make no mistake: The AI power narrative isn't hype. AI data centers consume astronomical amounts of power, putting immense pressure on existing grids. This has forced governments and corporations to seek reliable, low-carbon energy alternatives to meet their growing power needs without abandoning their carbon-emission goals.

Yet NuScale became a victim of its own circumstances. A perfect storm of weak operational numbers, class action lawsuits, and its largest shareholder, Fluor, cashing out after the stock's rally sent the stock crashing.

That said, what NuScale is building holds solid potential to fill the global energy gap. Does that make the nuclear energy stock a bargain buy under $10, or is it still a value trap?

Image source: Getty Images.

What exactly does NuScale Power do? Let's first understand what NuScale's business is.

Founded in 2007, NuScale is developing small modular reactors (SMRs). They are designed to be simpler, safer, more scalable, and more cost-effective than traditional nuclear reactors. SMRs are also largely factory-built, which means shorter construction and installation times.

Its core patent is the Nuclear Power Module (NPM). Each individual module is a self-contained reactor capable of generating 77 megawatts electric of carbon-free electricity. Several NPMs can be grouped together to build a power plant that can then be installed virtually anywhere that requires round-the-clock, reliable energy, such as data centers.

NuScale's SMR design is already approved by the U.S. Nuclear Regulatory Commission, and the company has advanced from the research and development stage and has started production of the first modules.

So why is the seemingly promising nuclear energy crashing? There are three problems here.

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Where's the customer? The core thesis of buying NuScale is that tech giants and utilities will buy its modules and reactors and lock in several years of contracts. The company, however, hasn't yet entered into any binding contract with any customer to deliver NPMs.

Payment milestones, but no revenue NuScale has signed ENTRA1 as its exclusive global partner to develop and commercialize power plants using NPMs, but ENTRA1 hasn't yet signed any binding power purchase agreements. Moreover, NuScale is bound to pay ENTRA1 milestone fees for each NPM or NuScale product that could be used in a power plant. There's no revenue guarantee here, and this bizarre arrangement has even prompted several investor class action lawsuits.

Nothing concrete before 2030 Even with all the design and regulatory approvals, NuScale doesn't expect to deliver its first NPMs before 2031. That's if there aren't any delays or complications in design, development, and production.

I'd steer clear of NuScale Power stock, even at under $10 per share, until the company can prove its technology is commercially viable.

NuScale Power (SMR 0.34%), a developer of small modular reactors (SMRs) for nuclear power plants, went public through a merger with a special purpose acquisition company (SPAC) on May 3, 2022. Its stock opened at $10.70 per share on the first day, reached a record high of $53.43 on Oct. 15, 2025, but trades at just over $10 as of this writing. Let's see why NuScale's stock plunged, and if it could stabilize and recover in the second half of the year.

Image source: Getty Images.

Why did investors ignore NuScale? NuScale's SMRs can be installed in vessels that are only 65 feet tall and nine feet wide, making them much smaller than conventional nuclear reactors. They're prefabricated and assembled on-site to reduce the time, labor, and costs required to build a nuclear power plant.

NuScale's newest SMR only generates 77 MWe on its own, while conventional nuclear power plants usually generate over 1,000 MWe. However, NuScale's SMRs can be chained together to build smaller plants in areas that aren't well-suited for larger plants.

It's currently working with Fluor (FLR 0.51%) to deploy six of its 77 MWe reactors to construct a 462 MWe plant for Romania's RoPower. It also recently agreed to deploy up to six gigawatts of its SMR capacity across seven states for the Tennessee Valley Authority (TVA).

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Those plans sound promising, but NuScale doesn't expect any of its reactors in Romania and the U.S. to come online until the early 2030s. It repeatedly postponed its first deployments as inflation drove up its costs, challenging the bullish view that SMRs would be a cheaper, faster alternative to conventional reactors for the booming AI market. It also faces intense competition from companies like Oklo (OKLO 3.90%), which are developing even smaller microreactors.

NuScale's constant delays sparked class action lawsuits, and Fluor -- which owned over half of its shares before its public debut -- liquidated its remaining shares this year. Over the past three months, its insiders sold 460 times as many shares as they bought.

Will NuScale's stock bounce back? NuScale will generate most of its revenue from its front-end engineering and design (FEED) studies, licensing fees, and consulting work until it deploys its first commercial SMRs.

For 2026, analysts expect its revenue to rise 79% to $56 million, while narrowing its net loss to $164 million. For 2027, they expect its revenue to more than triple to $173 million with a slightly wider net loss of $171 million. That growth trajectory would be impressive, but it's already priced for perfection at 63 times this year's sales. That high valuation will limit its upside potential as long as the messy macro environment drives investors away from speculative growth stocks.