NuScale Power’s share prices recently soared to a record high of approximately $36, marking a remarkable increase of over 250% in the past year. This surge raises the question of whether the stock is a worthwhile investment at these historically elevated price levels.
NuScale Power is currently in a developmental phase, reporting revenues of just $13 million in the first quarter of 2025 with associated costs around $6 million. Despite a gross profit of about $7 million, the company has not yet achieved profitability, facing substantial research and development expenses of $9 million alongside selling, general, and administrative costs totaling $23 million.
The company’s core venture revolves around enhancing nuclear power through the development of small-scale modular reactors. These innovative reactors are designed to be pre-manufactured in factories and then transported to sites, aiming to lower costs, simplify construction, and enhance safety. With the potential to revolutionize how nuclear energy is utilized, NuScale’s modular reactors could significantly change public perception and application of nuclear power.
There is a favorable context for NuScale, as both current U.S. administration policies and recent executive orders demonstrate strong support for nuclear energy as a clean source of power. This renewed interest has played a role in boosting the company’s stock prices. In addition, NuScale has secured a tentative agreement to provide six of its reactors to RoPower, a Romanian energy provider. The company is conducting feasibility studies in preparation for RoPower’s final investment decision later this year, which could be a significant step forward in acquiring its first customer. To facilitate future contracts, it has also started securing long-lead-time parts for the construction of 12 reactors.
However, there is a lengthy timeline involved; the RoPower project is not expected to be completed until approximately 2030, meaning that NuScale’s small modular reactors will likely remain untested in the market for some time. This extended timeline contributes to its classification as a “story stock,” known for their inherent volatility, particularly in nascent industries.
Investors should be prepared for potential fluctuations; NuScale’s stock price has previously experienced significant dips—which may recur as the company navigates these initial phases of development. Though many investors might look for an optimal buying price below $31, those with a positive long-term outlook might find the current price appealing.
In a hopeful turn, if RoPower’s project materializes, it could pave the way for NuScale to establish itself as a leader in the nuclear sector, potentially opening doors to further clients and accelerating the transition to more sustainable energy solutions.