Is Now the Time to Buy NuScale Power Amid Institutional Bullishness and Volatility?

The nuclear energy sector has long been a battleground for innovation and capital, but NuScale Power (NYSE: SMR) has emerged as a standout player in the small modular reactor (SMR) race. With institutional investors holding 78.37% of its shares and a recent 30-day stock price drop of -47.15%, the question of whether NuScale is a buy now hinges on its strategic positioning, institutional activity, and ability to navigate volatility.

Institutional Bullishness: A Mixed Picture

NuScale's institutional ownership landscape reveals a tug-of-war between confidence and caution. Over the past 24 months, institutional investors have purchased 40.3 million shares (worth $1.14 billion), led by Samsung C&T Corp., Clear Street Group Inc., and Van ECK Associates Corp. This buying spree suggests optimism about NuScale's role in decarbonizing energy systems and its first-mover advantage in securing U.S. Nuclear Regulatory Commission (NRC) design approval. Conversely, sellers like Goldman Sachs Group Inc. and Swedbank AB have offloaded 14.57 million shares ($416.24 million), reflecting skepticism about execution risks and stretched valuations.

The top institutional holders-Vanguard Group Inc. ($398.26 million), MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. ($263.2 million), and Samsung C&T Corp. ($186.69 million)-underscore the stock's appeal to long-term investors. However, the recent 30-day price plunge raises concerns about short-term volatility, particularly as NuScale proposes doubling its authorized Class A common stock, a move that could dilute existing shareholders but provide flexibility for capital-intensive projects.

Strategic Positioning: Partnerships and Competitive Edge

NuScale's 2025 strategic milestones position it as a leader in the SMR market. Its exclusive global partnership with ENTRA1 Energy and the Tennessee Valley Authority (TVA) to deploy up to six gigawatts of SMR capacity represents the largest SMR program in U.S. history. This collaboration, bolstered by a $55 million commitment from ENTRA1 for future NuScale modules, highlights the company's ability to secure high-impact contracts.

Competitively, NuScale's NRC approval-a feat no other SMR developer has achieved-remains a critical differentiator. While rivals like GE Vernova and BWX Technologies advance their own SMR designs, NuScale's partnerships with Fluor and Doosan Enerbility strengthen its supply chain and project execution capabilities. Analysts also note the company's use of lightwater technology and Low Enriched Uranium (LEU) as technical advantages, aligning with global trends toward proliferation-resistant nuclear solutions.

Financial Realities: Liquidity vs. Earnings Pressure

Despite strategic momentum, NuScale's financials tell a more complex story. As of Q3 2025, the company held $753.8 million in liquidity, bolstered by a $475.2 million at-the-market equity raise. Yet Q3 earnings revealed a loss per share of -1.85 and revenue of just $8.24 million, underscoring the challenges of scaling a capital-intensive technology.

Analysts remain divided. RBC Capital, for instance, reduced its price target to $32 from $35 while maintaining a "Sector Perform" rating, reflecting cautious optimism. Others warn of scalability risks and a stock that may be "trading on potential rather than fundamentals." The three-year total shareholder return of 85.14%, however, suggests long-term investors are betting on NuScale's vision to meet surging demand from AI data centers and energy-intensive industries.

Is Now the Time to Buy?

NuScale's institutional activity and strategic partnerships signal a company poised to capitalize on the energy transition. The recent TVA deal and NRC approval provide a strong foundation, while liquidity from equity raises offers breathing room for commercialization. However, the stock's volatility and Q3 earnings miss highlight execution risks.

For investors, the decision hinges on risk tolerance. Bullish investors may view the 30-day price drop as an opportunity to buy into a company with transformative potential, particularly as global demand for clean energy accelerates. Skeptics, meanwhile, may wait for clearer signs of profitability or a more stable valuation.

In the end, NuScale embodies the dual-edged nature of disruptive innovation: high reward, high risk. As the SMR market evolves, its ability to translate partnerships into consistent financial performance will determine whether this is a "buy" or a "wait and see."