NuScale Power Surges 12% — Is This the Nuclear Breakout the Market Demands?

• SMR soars 11.95% to $41.96, hitting a near-52-week high of $42.23
• Institutional buying surges: Lauer Wealth, Vanguard, and Samsung C&T acquire over $50M in shares
• Sector catalysts ignite: Trump administration’s pro-nuclear stance and Romania plant progress
• Dynamic PE ratio hits -213x, raising valuation concerns amid $10.6B market cap

NuScale Power’s explosive intraday rally has investors buzzing as the nuclear SMR pioneer capitalizes on regulatory tailwinds and strategic partnerships. With shares up sharply from $6.88 lows, traders are weighing whether this marks a sustainable breakout or another speculative sprint.

Regulatory Backing and Institutional Momentum Drive Explosive Rally
NuScale’s surge is fueled by twin catalysts: Secretary of Energy Wright’s pro-nuclear stance and strategic investor confidence. The administration’s pledge to fast-track nuclear approvals aligns with NuScale’s progress on Romania’s 462 MWe project, which could secure final investment decisions by 2026. Institutional buying from Lauer Wealth, Vanguard, and Samsung C&T - totaling over $50 million - has amplified momentum. Technicals further support the move, with prices breaking above the 50-day moving average ($31.97) and nearing the 200-day resistance ($23.40).

Nuclear Renaissance Sparks: NuScale Outshines Peers in Regulatory Tailwinds
While sector peers like Oklo (OKLO +9%) and Nano Nuclear (NNE +5%) followed SMR’s lead, NuScale’s strategic differentiation stands out. Its dual Standard Design Approvals from the NRC and exclusive role in Romania’s landmark project provide tangible execution risk mitigation compared to competitors still in design phases. The sector’s collective 10-15% intra-day gains reflect broader optimism about advanced nuclear’s AI-infrastructure play, but NuScale’s valuation premium underscores its perceived leadership.

Target SMR’s Volatility with Bullish Options - Watch $42 Resistance
Technical Indicators:
• 200-day average: $23.40 (well below current price)
• RSI: 50.59 (neutral)
• Bollinger Bands: Upper at $42.56 (resistance), Middle at $37.98 (support)
• MACD Histogram: -0.75 (suggesting bearish divergence)

Aggressive bulls should target SMR20250718C40 (SMR20250718C40) and SMR20250725C40 (SMR20250725C40). Both calls offer compelling leverage with:
- SMR20250718C40: 4920 volume, 12.83% leverage ratio, Δ0.695. Projected 5% upside payoff: $43.66 - $40 = $3.66 per contract.
- SMR20250725C40: 5012 volume, 10.42% leverage, Δ0.659. Payoff at $43.66: $3.66. Both contracts benefit from strong theta decay (-$0.41/day) and gamma sensitivity.

Bearish caution emerges at $42.56 resistance. Traders should pair long calls with a short position above this level. The Global X Uranium ETF (URA) at $38.84 (+3.5%) complements SMR exposure to nuclear supply chain tailwinds.

Holding through July expiration: If SMR stays above $37.98, reevaluate strikes at $42.50.

Hooks: "Break $42.56 and SMR20250718C40 hits $4 profit. Watch NRC reform deadlines for volatility."

Backtest NuScale Power Stock Performance
The strategy of buying the SMR after an intraday surge of 12% has shown mixed results in the backtest. While the 3-day win rate is relatively high at 48.78%, the returns over longer periods, such as 10 days and 30 days, are lower at 46.88% and 46.34%, respectively. Additionally, the maximum return during the backtest period was only 0.85%, which suggests that this strategy may not always lead to significant gains.

Nuclear Bull Run or Valuation Bubble? Investors Face a Crucial Crossroads
NuScale’s meteoric rise reflects both legitimate sector tailwinds and speculative frenzy. Bulls cite Romania’s 2026 FID and AI-driven energy demand, while bears note a PE ratio that defies reality for a pre-revenue firm. The $42.56 resistance level and Oklo’s +9% performance underscore sector cohesion, but SMR’s valuation premium demands execution proof. Investors must monitor NRC’s regulatory reforms and data center partnerships closely. For now, SMR remains a high-beta bet on nuclear’s comeback - but traders should hedge against a $32-33 retracement if FOMO fades.

Action Insight: "Layer into SMR20250725C40 calls below $42, but book profits if it collapses below $37.98 support."