NuScale Power Surges 8.81% on $1.37B Volume Spike Ranks 68th in U.S. Trading Activity

Market Snapshot

NuScale Power (SMR) surged 8.81% in intraday trading on October 28, 2025, with a trading volume of $1.37 billion—a 139.27% increase from the prior session—ranking it 68th in volume among U.S. equities. The stock’s sharp rebound followed a two-day decline of 21.47% in early October after Citigroup downgraded the company to “Sell/High Risk,” citing unfulfilled customer contracts and a “stretched valuation.” The recent volume spike and price recovery suggest renewed investor interest, though the stock remains under pressure from institutional shareholder activity and regulatory scrutiny.

Key Drivers

Regulatory Scrutiny and Analyst Downgrades

Pomerantz LLP, a prominent securities law firm, announced an investigation into NuScale Power on October 28, focusing on potential securities fraud or unlawful business practices by the company or its executives. This development followed a Citigroup downgrade in late October that highlighted NuScale’s failure to secure binding customer contracts and concerns over valuation. Citigroup’s analysis noted that Fluor Corp., a major shareholder, had sold a significant stake, exacerbating market skepticism. The downgrade triggered a 21.47% drop in NuScale’s stock price over two trading sessions, closing at $34.72 on October 22. The firm’s ongoing legal inquiry may further erode investor confidence, particularly as it could lead to reputational damage or operational disruptions.

Institutional Investor Activity

Despite the recent volatility, institutional investors have shown increased appetite for NuScale shares. The State of New Jersey’s Common Pension Fund D allocated $2.94 million to NuScale in October, while Private Wealth Partners LLC boosted its stake by 39.4%, acquiring 6,500 additional shares. Brookstone Capital Management also established a new position in the stock during the same period. These moves indicate that some institutional investors view NuScale’s long-term prospects—particularly its modular nuclear reactor technology—as undervalued. However, the firm’s institutional ownership remains concentrated, with 78.37% of shares held by professional investors, which could amplify price swings in response to market sentiment shifts.

Sector-Wide Optimism and Strategic Contracts

NuScale’s performance also benefited from broader optimism in the nuclear energy sector. On October 28, Cameco Corp. announced a $80 billion partnership with the U.S. government to build nuclear reactors, spurring a sector-wide rally. NuScale, along with peers like Oklo and uranium producers, saw its stock price rise amid renewed investor enthusiasm for nuclear infrastructure. Additionally, BWXT, a key supplier to the nuclear industry, secured $3.1 billion in contracts for uranium enrichment and reactor components, reinforcing expectations of increased demand for clean energy solutions. While NuScale has yet to secure major commercial contracts itself, the sector’s tailwinds may indirectly support its valuation as market participants anticipate regulatory and policy-driven growth in nuclear energy.

Valuation Pressures and Liquidity Constraints

Analysts remain divided on NuScale’s valuation. MarketBeat reports a consensus price target of $37.73, slightly above the recent closing price, but with a “Reduce” rating from three research analysts. The firm’s high-risk profile is compounded by its reliance on unproven commercial contracts and ongoing shareholder dilution. Fluor’s recent stake reduction and institutional selling pressure have created liquidity challenges, with the stock experiencing significant price swings. While the recent volume surge suggests short-term speculative interest, the lack of a diversified revenue stream and regulatory hurdles could hinder sustained momentum. Investors are likely weighing the balance between NuScale’s technological potential and its execution risks, particularly as the firm navigates a competitive landscape with new entrants and evolving regulatory standards.