NuScale Power: The SMR Stock at the Heart of the AI Energy Boom

Key Points

• NuScale is the only company with a certified small modular reactor design from U.S. regulators, giving it a significant head start over all its competitors.
• A landmark agreement with the Tennessee Valley Authority provides powerful commercial validation for NuScale's technology on a massive utility scale.
• The company is well-positioned to capitalize on surging electricity demand from the AI industry, thanks to a strong, debt-free financial foundation that will fund its growth.

Shares of NuScale Power NYSE: SMR have delivered a remarkable performance in 2025, climbing in value as the market awakens to a new and powerful reality.

The artificial intelligence (AI) revolution is not only changing how we work and live, but it is also fundamentally reshaping global energy demands. This shift has ignited a renewed interest in nuclear power, and NuScale, with its innovative technology and significant head start, has emerged as a key player in this unfolding energy sector transformation.

The company's recent momentum is directly tied to the growing recognition that the AI industry needs immense, reliable, and clean power, and advanced nuclear energy is poised to be the essential solution.

An Unmistakable Lead: Catalysts and Commercial Validation

The primary catalyst behind the nuclear sector's resurgence is the digital economy's insatiable energy appetite. Hyperscale data centers and the processors that power AI models require a constant, massive supply of electricity to operate 24/7. 

This need for unwavering baseload power is something intermittent renewable sources like solar and wind cannot guarantee on their own. This critical energy gap has spotlighted advanced nuclear power, supported by favorable U.S. government policies, such as the Inflation Reduction Act and the ADVANCE Act, which provide financial and regulatory tailwinds for the industry.

Within this promising landscape, NuScale has established a formidable competitive advantage. Its most significant asset is its regulatory moat; NuScale holds the first and only Small Modular Reactor (SMR) design certified for use by the U.S. Nuclear Regulatory Commission (NRC).

This approval, the result of a multi-year, multi-billion-dollar effort, provides a level of validation and de-risking that no competitor can currently claim. It represents a significant head start in a high-barrier industry, shortening the path to commercial deployment for potential customers.

This theoretical advantage is now translating into tangible commercial success. In September 2025, NuScale's strategic partner, ENTRA1 Energy, announced a landmark agreement with the Tennessee Valley Authority (TVA) to deploy up to 6 gigawatts of SMR capacity.

This program, the largest of its kind in U.S. history, is expected to deliver enough carbon-free electricity to power a region the size of the entire Dallas-Fort Worth metropolitan area. This serves as a powerful endorsement of NuScale's technology by one of the nation's largest public utilities.

Reinforcing this progress, 12 of NuScale's Power Modules are already in production through its manufacturing partner, demonstrating a clear and active supply chain ready to meet demand.

Investing in the Lead

For investors, NuScale's operational momentum is backed by a solid financial foundation. The company boasts a strong balance sheet with approximately $489.9 million in cash, investments, and, crucially, zero debt.

This level of liquidity provides a substantial operational runway, giving the company the financial flexibility to fund its growth and scale its manufacturing capabilities without the burden of interest payments.

When assessing the stock, which has a 52-week range of $10.71 to $53.50, its current valuation reflects high expectations. With a market capitalization of approximately $11.8 billion and a price-to-sales ratio (P/S)  of over 330 based on trailing annual sales, the market is clearly pricing in significant future growth.

As a pre-commercialization technology company, NuScale's valuation is not based on its current revenue but on its massive addressable market and leadership position in a multi-trillion-dollar energy transition.

The market sentiment surrounding NuScale is complex and warrants a closer look. While the analyst consensus rating from 13 analysts is a Hold, the high-end analyst price target of $60.00 suggests that some on Wall Street see significant upside potential from current levels.

Furthermore, two other market factors provide important context:

• High Short Interest: Over 33% of the stock's publicly available shares are sold short. While this indicates a level of skepticism, it also creates the conditions for a potential short squeeze, where a string of positive news could prompt short sellers to cover their positions, causing the stock price to rise rapidly.
• Insider Selling: Recent stock sales by major shareholder Fluor Corp. are best understood as part of a long-term monetization of a non-core asset. This common corporate strategy does not necessarily reflect a negative outlook on NuScale's fundamental prospects.

NuScale's Role in the New Economy

NuScale Power has firmly established itself as a leader in the next generation of nuclear energy. Its combination of a unique regulatory advantage, tangible commercial validation from a major utility, and a strong, debt-free balance sheet places it in a premier position to capitalize on the energy demands of the AI revolution.

For investors seeking direct exposure to the future of energy infrastructure, NuScale represents a compelling, long-term opportunity at the forefront of a new industrial era. The path to full-scale commercialization is long, but the company has secured all the necessary components to lead the charge.