Is NuScale Power Stock a Buy in the Era of Energy Transition?

The energy transition is reshaping global markets, with nuclear energy emerging as a critical pillar in the race to decarbonize power grids. NuScale Power (NYSE: SMR), a pioneer in small modular reactor (SMR) technology, sits at the intersection of innovation and risk. For aggressive investors, the question of whether NuScale is a buy hinges on a nuanced risk-reward analysis. This article evaluates the company's volatile stock performance, regulatory progress, uncertain commercialization timeline, and institutional insider activity to determine its investment potential in 2025.

Volatility and Financial Challenges: A High-Risk Profile

NuScale's stock has been a rollercoaster in 2025, reflecting the company's precarious financial position and market skepticism. Shares plummeted 55.4% in November 2025, driven by a 50% drop that failed to recover before a subsequent 30% drawdown according to market data. Over the past year, the stock is down 5%, despite a 130% peak rally, and now trades nearly 60% below its all-time high of $57.42. This volatility underscores the company's status as a high-risk bet.

Financially, NuScale reported a net loss of $273 million in Q3 2025, with revenue rising to $8 million-primarily from engineering services rather than commercial sales. The company's liquidity, while improved ending Q1 2025 with $521.4 million in cash, remains tied to uncertain revenue streams. Analysts warn that the stock's trajectory could worsen if NuScale fails to secure its first commercial contract or faces further dilution according to market analysis.

Regulatory Progress: A Critical Milestone

Despite the financial headwinds, NuScale has made significant regulatory strides. In May 2025, the U.S. Nuclear Regulatory Commission (NRC) granted Standard Design Approval for its uprated 77 MWe SMR design. This approval expands the reactor's applicability to data centers, industrial processes, and utilities, positioning NuScale to capitalize on the SMR market's projected 42.31% CAGR from 2024 to 2035 according to market research.

The company also advanced its Romania-based RoPower Doicești project, with Fluor's Phase 2 Front-End Engineering and Design (FEED) study progressing according to company updates. These developments signal technical credibility but remain contingent on securing firm contracts and navigating regulatory hurdles in international markets.

Uncertain Commercialization Timeline: Execution Risks Loom

NuScale's path to profitability hinges on its ability to secure its first commercial sale, a goal it has targeted for 2030. While the company has inked partnerships with ENTRA1 Energy and the Tennessee Valley Authority (TVA) for potential 6 gigawatts of SMR capacity, these agreements are non-binding and subject to delays. Analysts caution that cost overruns, supply chain bottlenecks, and project delays-common in the nuclear sector-could derail NuScale's timeline according to industry experts.

Moreover, NuScale's business model relies on licensing its technology to partners, with revenue generation beginning approximately five years before commercial operation according to financial projections. This long lead time amplifies execution risks, as the company must maintain liquidity and investor confidence for over a decade before reaping tangible returns.

Institutional Insider Activity: A Red Flag?

Institutional insider activity has raised concerns. Over the past six months, NuScale's insiders, including Fluor, sold 15 million shares, with no reported insider purchases during the same period. Fluor's planned 2026 stake sale adds further uncertainty according to market reports. Such behavior suggests skepticism about NuScale's near-term prospects, particularly for investors seeking immediate returns.

Long-Term Potential: A High-Reward Scenario

For aggressive investors with a multi-decade horizon, NuScale's SMR technology could be a transformative play. The global SMR market is projected to grow from $159.4 million in 2024 to $5.17 billion by 2035 according to market forecasts, driven by decarbonization mandates and the need for flexible, low-carbon energy. NuScale's partnerships with hyperscalers, utilities, and industrial clients according to company announcements position it to capture a significant share of this growth.

Additionally, NuScale's regulatory approvals and strategic alliances-such as its collaboration with ENTRA1 Energy-demonstrate its ability to navigate complex energy ecosystems according to investment analysis. If the company secures its first commercial contract by 2026 and executes its 2030 deployment timeline, it could unlock substantial value for early investors.

Conclusion: A High-Risk, High-Reward Proposition

NuScale Power embodies the dual-edged nature of energy transition investing. Its stock volatility, financial losses, and uncertain commercialization timeline present significant risks, particularly for risk-averse investors. However, the company's regulatory progress, long-term market potential, and strategic partnerships offer a compelling case for aggressive investors willing to tolerate short-term turbulence.

For those with a high-risk tolerance and a belief in the SMR revolution, NuScale could be a speculative buy. Yet, the absence of near-term revenue, institutional selling, and execution risks mean this is not a "buy and hold" opportunity for the faint of heart. As the energy transition accelerates, NuScale's success will depend on its ability to transform technical promise into commercial reality-a challenge that remains far from guaranteed.