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NuScale Power is trying to sell its first small modular nuclear reactor.
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The stock’s 52-week high is $53 and the 52-week low is about $13.
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Is NuScale Power stock a buy now that it’s closer to the low end than the high end of its 52-week range?
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NuScale Power (NYSE: SMR) It has a very interesting technology that it is trying to build a business around. The problem is that it has not yet made its first official sale. Is the stock worth buying while it’s trading below $24, or is the risk too high right now?
NuScale Power has designed a small modular nuclear reactor (SMR). SMR technology could be an important step forward for the nuclear energy industry. Traditional large-scale on-site built nuclear power plants are massive capital investment projects that require a long time to build. The most recent nuclear power plants to be built in the United States, Vogtle 3 and 4, arrived years late and went wildly over budget.
An SMR is built in a factory, the goal of which is to make the construction process safer and faster. The smaller size of an SMR should make it less expensive to build. The size of a unit should also allow an SMR to be placed closer to population centers and easily transported where needed. The modular design would also allow SMRs to be linked together to create larger power plants, which could be of interest to electric utility customers.
SMRs would still be significant capital investments, but the benefits are attractive. For example, a data center that supports artificial intelligence and uses a large amount of electricity could have its own dedicated SMR. This would prevent the data center from having to be connected to the electrical grid, a process that can be time-consuming and draw criticism due to the enormous power demands of AI.
NuScale Power has exciting technology to offer the world. What you don’t have yet is a client. This is an important issue, as you need to prove that your SMRs work. The first official sale is likely to be a big turning point for the business, as it will likely make other customers more comfortable with NuScale’s SMR technology.
NuScale Power has two potential customers lined up. A Romanian power company is currently considering up to six NuScale SMRs. NuScale is generating some revenue by offering consulting services to RoPower and an engineering and construction company. Fluorine (NYSE: FLR) in the evaluation effort. A final decision is not expected until late 2026 or early 2027, about a year beyond previous expectations.