NuScale Power's Nuclear Renaissance: Riding the SMR Wave While Navigating Execution Hazards

The nuclear energy sector is undergoing a quiet revolution, and NuScale Power (NSP) stands at the forefront of it. In 2025, the company's advancements in small modular reactors (SMRs) have positioned it as a critical player in the clean energy transition, yet its path remains fraught with execution risks. For investors, the question is whether NuScale's strategic advantages—bolstered by policy tailwinds and hyperscaler demand—outweigh its financial and operational challenges. This analysis explores the balance between its speculative upside and the need for disciplined risk management.

Regulatory Tailwinds and SMR Innovation

NuScale's July 2025 U.S. Nuclear Regulatory Commission (NRC) approval for its uprated 250 MWt (77 MWe) SMR design marks a pivotal milestone. This certification, secured faster than anticipated, builds on its 2016 approval for a 50 MWe model, enabling scalable power plants ranging from 77 MW to 924 MW. The design's modular flexibility allows NuScale to target hyperscalers, utilities, and industrial users requiring reliable, 24/7 baseload power—critical for AI/data centers and grid stability.

President Trump's 2024 executive order to quadruple U.S. nuclear capacity to 400 GW by 2050 has been a game-changer. The policy fast-tracks SMR deployment and aligns with Inflation Reduction Act incentives, such as production tax credits. This regulatory push has directly accelerated NuScale's Ohio/Pennsylvania project, which aims to deliver 1.8 GW of carbon-free power by 2029—targeting hyperscalers like Amazon and Meta.

Hyperscaler Partnerships: A Growth Catalyst

NuScale's partnerships with “tier-one hyperscalers” represent a transformative opportunity. These companies, which consume 1–2% of global electricity, are under pressure to decarbonize their data centers. SMRs offer a solution: compact, scalable, and emissions-free. NuScale's SMRs can provide 24/7 power at half the footprint of traditional reactors, aligning with hyperscalers' demand for reliable energy.

The company's CEO, John Hopkins, has emphasized that these partnerships are “strategic for both parties,” as hyperscalers seek to avoid grid instability and greenwashing accusations. Early agreements, though confidential, suggest NuScale is nearing commercial deals, which could lock in long-term revenue streams.

Risk Factors: Execution, Profitability, and Supply Chains

Despite the optimism, NuScale faces formidable hurdles:

1. Execution Timelines: The canceled $9.3 billion Utah Associated Municipal Power Systems project underscores the risks of project delays and cost overruns. NuScale's 2030 deployment target hinges on flawless execution, particularly with manufacturing partner Doosan.
2. Profitability: With a 2024 net loss of $180 million and a reliance on ATM offerings to bolster liquidity ($521.4M in cash as of Q1 2025), the company must achieve economies of scale to turn profitable.
3. Supply Chain Challenges: While Doosan's production of 12 modules is underway, scaling to 12-module plants requires a robust global supply chain—vulnerable to geopolitical disruptions.

Investment Thesis: Controlled Exposure with Diversification

For investors, NuScale represents a high-risk, high-reward bet on the SMR boom. The thesis hinges on two pillars:

1. Allocate a Controlled Portion to NSP: SMRs are the future of nuclear energy, and NuScale's first-mover advantage—with two NRC certifications—is unmatched. A 2–5% allocation to NSP could provide exposure to AI/data center energy trends and U.S. policy tailwinds.
2. Diversify via Nuclear ETFs: Pair NSP with broad exposure to the sector via ETFs like the Nuclear Energy ETF (NUCL) or the Uranium & Nuclear ETF (UCRU). These instruments mitigate company-specific risks while capturing upside from SMR adoption globally.

Conclusion: A Balancing Act for the Long Game

NuScale Power's 2025 advancements are undeniably impressive, but its success depends on overcoming execution and profitability hurdles. For investors, the company is best viewed as a speculative core holding within a diversified clean energy portfolio. While SMR technology is poised to redefine grid resilience, patience—and diversification—will be key to navigating this nuclear renaissance.

Final recommendation: Aggressive investors may consider a 2–5% position in NSP, paired with 5–10% exposure to nuclear ETFs to balance risk.