NuScale Power: Pioneering the Nuclear Renaissance with SMRs and Regulatory Momentum

The nuclear energy sector is on the cusp of a transformation, and NuScale Power (NYSE:SMR) stands at the forefront. With its Small Modular Reactor (SMR) technology gaining regulatory approval and financial momentum, the company is positioned to capitalize on a global shift toward carbon-free energy solutions. Here's why investors should take notice now.

A Regulatory Breakthrough: NRC Approval of the 77 MWe SMR

The U.S. Nuclear Regulatory Commission (NRC) recently finalized approval of NuScale's uprated 77 MWe SMR design—a critical milestone. This follows the 2020 certification of its 50 MWe model, solidifying NuScale's status as the only SMR provider with full NRC design certification. The 77 MWe version offers 54% more power per module while retaining the same passive safety features, such as gravity-driven cooling, which eliminate the need for external power during emergencies.

This approval unlocks commercialization opportunities for NuScale and its partner, ENTRA1 Energy, which holds exclusive global deployment rights. The design's scalability—up to 12 modules per plant—enables tailored solutions for industries like data centers, hydrogen production, and grid stabilization. With the NRC's seal of approval, NuScale is now primed to compete for projects in the U.S. and abroad, including its flagship RoPower SMR plant in Romania.

Financial Momentum: Revenue Soars, Costs Are Tamed
NuScale's Q1 2025 results underscore its transition from a development-stage company to a revenue-generating entity. Revenue jumped to $13.4 million, a staggering 857% year-over-year increase, driven by progress on the RoPower FEED study and licensing fees. Operating expenses fell 5%, narrowing the loss to $35.3 million—a significant improvement from $44 million in Q1 2024.

The company's cash reserves hit $521 million, bolstered by an $102 million share sale, providing ample liquidity to advance its supply chain and secure customer commitments. With over 30 suppliers now engaged—including Doosan for reactor vessels and Framatome for fuel—NuScale is preparing to deliver its first modules by 2030, a timeline supported by bipartisan U.S. policy backing.

Strategic Projects: RoPower Leads the Charge
The RoPower Doicești plant in Romania, a 462 MWe facility using six 77 MWe modules, is NuScale's most advanced project. It aims to provide clean energy for 1.5 million households and support industrial decarbonization. A final investment decision (FID) is expected by late 2025, with construction timelines aligning with NuScale's 2030 target.

Beyond Romania, NuScale is in advanced discussions with 10 global customers, including hyperscalers and utilities seeking carbon-free power for data centers and hydrogen production. The company's focus on AI and EV-driven energy demand—which requires reliable, scalable baseload power—is a strategic advantage. SMRs can meet these needs without emissions, positioning NuScale as a key player in the $1.3 trillion global energy transition market.

Valuation: Undervalued Amid Growth Catalysts
Despite its progress, NuScale's shares trade at $31.79, well below the $31.66 consensus analyst target (with upside to $41). This disconnect arises from near-term execution risks, but long-term fundamentals suggest undervaluation:
- Revenue growth: Analysts project a 28.99% rise in 2025, accelerating to 229% in 2026 as projects come online.
- Analyst upgrades: Canaccord Genuity and CLSA recently raised price targets to $36 and $41, citing NRC approval and RoPower's FID.
- Market cap vs. potential: At $4.27 billion, NuScale's valuation remains modest compared to its addressable market and first-mover advantage in SMRs.

The stock's 77% YTD gain versus the S&P 500's 1.5% return reflects investor confidence in its growth trajectory.

Risks to Consider
- Regulatory delays: While the NRC's July 2025 deadline for finalizing the 77 MWe approval is on track, any hiccup could stall timelines.
- Customer commitments: Securing a U.S. anchor customer by year-end is critical. The canceled Carbon Free Power Project highlights execution risks, but NuScale's pipeline of 10 prospects offers diversification.
- Supply chain bottlenecks: Global competition for specialized components could inflate costs. NuScale's partnerships with Doosan and others aim to mitigate this.

Final Call: Buy NuScale Now—The Nuclear Renaissance is Here
NuScale Power is not just another energy stock—it's a pioneer in a $500 billion global SMR market. With NRC approval secured, financial discipline proven, and projects like RoPower advancing, the company is transitioning from innovator to industry leader.

While risks exist, the tailwinds are undeniable: bipartisan U.S. support, decarbonization mandates, and the need for reliable baseload power for AI and EVs. At current prices, SMR offers a high-risk, high-reward entry into a sector poised for explosive growth. For investors willing to look beyond short-term volatility, NuScale represents a once-in-a-generation opportunity to profit from the nuclear renaissance.

Action Items:
1. Buy SMR at $32, with a price target of $40–$50 by 2026 as projects come online.
2. Set a stop-loss at $28 to protect against near-term volatility.
3. Monitor RoPower's FID and customer announcements—milestones that could trigger a rerating.

The future of energy is clean, scalable, and modular. NuScale is building it—and investors who act now can secure a stake in the next energy revolution.