NuScale Power Corp (NYSE: SMR) has experienced a remarkable 33% increase in 2025, significantly exceeding the S&P 500’s 0.6% decline. This surge reflects growing investor confidence in NuScale’s distinctive position within the nuclear energy industry, propelled by rising electricity demand amid the AI boom and the swift progression of global electrification.
NuScale is leading the charge in the development of small modular reactors (SMRs)—safer, factory-manufactured alternatives to conventional nuclear plants. It is the sole holder of a U.S. Nuclear Regulatory Commission (NRC)-certified SMR design and enjoys strategic and technical backing from its majority owner, Fluor Corporation, providing it with a significant competitive advantage. The stock’s upward trajectory is driven by a mix of regulatory benefits, project advancements, and positive macro trends. We examine these elements further below.
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Timing and Relevance
The electricity demand in the U.S. is rising sharply due to the expansion of data centers and the transition to electric vehicles. Nuclear energy is experiencing a resurgence as a dependable, carbon-free alternative to fossil fuels. NuScale is preparing to provide six SMRs to Romania’s RoPower, which will create a 462-megawatt nuclear facility. Pre-orders for long-lead-time components are currently in progress, and updates on this initiative will be closely monitored. A final investment decision from RoPower is anticipated later this year—a possible trigger for additional stock movement. Furthermore, NuScale expects NRC approval by July 2025 to increase its module capacity from 50 MWe to 77 MWe and is engaging in discussions with up to ten prospective customers, aiming for a confirmed customer order before the year’s end.
Robust Q1 Performance
NuScale’s earnings for the first quarter surpassed expectations, showing $13.4 million in revenue, a substantial rise from $1.4 million a year prior and well above the analyst projections of $3.4 million. This increase was propelled by advancements in its FEED Phase 2 Project with Fluor and a technology licensing agreement for Romania’s RoPower Doicesti power plant. Cost management strategies also played a role in enhancing financial results. Operating expenses decreased to $42.3 million, down from $44.6 million, which helped narrow the operating loss from $44 million to $35.3 million.
Risks and Uncertainties
Despite the recent upward trend, NuScale remains a speculative investment facing a number of significant challenges. The company deals with supply chain issues, as the nuclear industry relies on a limited pool of specialized suppliers, posing an obstacle that could impede scalability. Project timelines are extensive, with commercial rollout not anticipated until the early 2030s. Additionally, exposure to tariffs and escalating construction costs represents further risks to NuScale’s long-term financial health.
It should also be acknowledged that stocks can decline dramatically – 20%, 30%, or even 50% –as witnessed during previous market shocks. No stock is exempt. Our dashboard How Low Can Stocks Go During A Market Crash illustrates how key stocks performed during and following the last six market crashes.
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