NuScale Power (SMR) Plunges 8.12% on Dilution Fears 25.87% Four-Day Drop Amid Regulatory Move and Wider Sector Shifts

NuScale Power Corp. (NYSE: SMR) hit its lowest level so far this month on Dec. 19, with an intraday decline of 8.35%. The stock closed down 8.12% at $15.73, marking a 25.87% drop over four consecutive sessions amid mounting investor concerns over corporate strategy and financial performance.

The selloff followed NuScale’s announcement of a regulatory filing to increase its authorized capital stock from 332 million to 662 million shares, doubling the outstanding share count. The move, approved by the board on Dec. 16, triggered immediate skepticism about potential equity dilution, which could reduce earnings per share and erode shareholder value. The lack of clarity on how the additional shares will be utilized has fueled speculation the raise is intended to cover operational shortfalls rather than fund growth initiatives.

Compounding the pressure, NuScale reported a 1,470% surge in third-quarter net losses to $273 million, despite a 1,635% year-on-year revenue increase to $8.2 million. The stark contrast between revenue growth and profitability highlights the company’s reliance on capital-intensive development of small modular reactor (SMR) technology. Broader market trends also weighed on the stock, as investors shifted toward AI and tech sectors perceived as offering higher returns and lower risk. The energy sector’s recent volatility underscores a broader reallocation of capital toward innovation-driven industries, leaving niche players like NuScale vulnerable to prolonged selling pressures.

NuScale’s stock has also struggled to attract broader institutional attention, with its recent performance drawing comparisons to other high-tech energy innovators. The absence of clear catalysts—such as major project milestones or strategic partnerships—has left the market uncertain about the company’s long-term viability. Analysts continue to express concern over the company’s ability to monetize its SMR technology in a timely manner, especially as global energy markets evolve at a rapid pace.

Investors are now closely watching for signs of stabilization, including a potential rebound in earnings per share or a clearer capital deployment strategy. Until then, NuScale remains a highly speculative bet, with its future contingent on the successful commercialization of its reactor designs and the broader adoption of nuclear power in the clean energy transition.