NuScale Power (SMR) Surges 9.4% on Regulatory Green Light and Analyst Upgrade—What’s Next?

Summary
• NuScale Power (SMR) surges 12% in pre-market trade after NRC approves uprated reactor design and TVA secures 6 GW power contracts.
• Bank of America upgrades SMR to 'Neutral' with $28 price target, trimming target from $34 amid 9% monthly correction.
• Stocktwits sentiment 'extremely bullish' as retail traders highlight AI-driven energy demand and government policy tailwinds.

NuScale Power (SMR) is trading at $21.5275, up 9.44% intraday, with a 52-week high of $57.42 and low of $11.08. The rally follows regulatory milestones, analyst upgrades, and sector-wide nuclear policy momentum, positioning SMR as a focal point for 2026 energy transition narratives.

Regulatory Green Light and TVA Partnership Fuel SMR's Rally
NuScale Power's 9.44% intraday surge is driven by two pivotal developments: the U.S. Nuclear Regulatory Commission's (NRC) May 2025 approval of its 77-MWe reactor design and the Tennessee Valley Authority's (TVA) 6 GW power contract. The NRC clearance, a critical regulatory hurdle, validates NuScale's technical viability, while the TVA agreement—valued at up to $25 billion—provides a concrete deployment pathway. Analysts at Bank of America upgraded SMR to 'Neutral' from 'Underperform,' citing improved deployment timelines and reduced regulatory risk. The stock's momentum is further amplified by retail sentiment on Stocktwits, where users highlight AI-driven energy demand and government efforts to streamline nuclear permits as catalysts.

Electric Utilities Sector Steady as SMR Outpaces Peers
While NuScale Power (SMR) surges, the broader Electric Utilities sector remains muted. Sector leader NextEra Energy (NEE) trades flat with a 1.14% intraday gain, underscoring SMR's divergence. The rally in SMR is tied to its unique position in the small modular reactor (SMR) niche, which benefits from tailored policy support and TVA's large-scale contract. In contrast, traditional utilities face regulatory and capital constraints, making SMR's momentum less sector-correlated.

Leveraged ETF and Options Playbook: Capitalizing on SMR's Volatility
• Tradr 2X Long SMR Daily ETF (SMU): Bold SMU surges 19.03%, reflecting SMR's volatility. Ideal for directional bets on short-term swings.
• RSI: 72.18 (overbought), MACD Histogram: 0.94 (bullish divergence), Bollinger Bands: Price at 21.5275 (above upper band at 21.37).

SMR's technicals suggest a continuation of bullish momentum. Key levels include the 200-day MA at $30.56 (resistance) and the 30D MA at $18.14 (support). The Tradr 2X Long SMR Daily ETF (SMU) offers amplified exposure to near-term volatility. For options, focus on contracts with high leverage and liquidity:

• SMR20260116C20: Call option with strike $20, expiration 2026-01-16. IV: 71.93% (moderate), Leverage: 10.43%, Delta: 0.769 (moderate), Theta: -0.1205 (high time decay), Gamma: 0.1329 (high sensitivity). Turnover: 118,899. A 5% price move to $22.60 would yield a payoff of $2.60 per contract, offering 130% return on strike.
• SMR20260116C21: Call option with strike $21, expiration 2026-01-16. IV: 106.10% (high), Leverage: 13.43%, Delta: 0.5915 (moderate), Theta: -0.1402 (high decay), Gamma: 0.1151 (high sensitivity). Turnover: 77,235. A 5% move to $22.60 would yield a $1.60 payoff, offering 76% return on strike. Both contracts benefit from high gamma and liquidity, ideal for capitalizing on SMR's volatility.

Aggressive bulls should consider SMR20260116C20 into a break above $21.775 intraday high.

Backtest NuScale Power Stock Performance
The strategy of buying the SMR after a 9% intraday increase from 2022 to now delivered moderate returns but came with considerable volatility. The 30-day win rate was 50.82%, with an average return of 10.75% over that period, indicating the strategy captured some trend following benefits while also highlighting the risk of backing out of positions too early.

Bullish Momentum Intact—Key Levels to Watch for Next Move
NuScale Power's rally is underpinned by regulatory validation, TVA's 6 GW contract, and analyst upgrades, but near-term gains remain sensitive to execution risks. The 200-day MA at $30.56 and 52-week high of $57.42 represent critical resistance levels. A sustained break above $21.775 intraday high could trigger a retest of the 200D MA. Meanwhile, sector leader NextEra Energy (NEE) trading flat at +1.14% highlights SMR's divergence. Investors should monitor TVA contract finalization and House Energy Subcommittee hearings for catalysts. Watch for $21.775 breakout or $20.71 support test—position accordingly.