NuScale Power Stock Is Plunging: What's Causing the Decline

NuScale Power (NYSE: SMR), a developer of small modular reactors (SMRs) for nuclear power plants, went public through a merger with a special purpose acquisition company (SPAC) on May 3, 2022. Its stock opened at $10.70 per share on the first day, reached a record high of $53.43 on Oct. 15, 2025, but trades at just over $10 as of this writing. Let's see why NuScale's stock plunged, and if it could stabilize and recover in the second half of the year.

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Why did investors ignore NuScale?

NuScale's SMRs can be installed in vessels that are only 65 feet tall and nine feet wide, making them much smaller than conventional nuclear reactors. They're prefabricated and assembled on-site to reduce the time, labor, and costs required to build a nuclear power plant.

NuScale's newest SMR only generates 77 MWe on its own, while conventional nuclear power plants usually generate over 1,000 MWe. However, NuScale's SMRs can be chained together to build smaller plants in areas that aren't well-suited for larger plants.

It's currently working with Fluor (NYSE: FLR) to deploy six of its 77 MWe reactors to construct a 462 MWe plant for Romania's RoPower. It also recently agreed to deploy up to six gigawatts of its SMR capacity across seven states for the Tennessee Valley Authority (TVA).

Those plans sound promising, but NuScale doesn't expect any of its reactors in Romania and the U.S. to come online until the early 2030s. It repeatedly postponed its first deployments as inflation drove up its costs, challenging the bullish view that SMRs would be a cheaper, faster alternative to conventional reactors for the booming AI market. It also faces intense competition from companies like Oklo (NYSE: OKLO), which are developing even smaller microreactors.

NuScale's constant delays sparked class action lawsuits, and Fluor -- which owned over half of its shares before its public debut -- liquidated its remaining shares this year. Over the past three months, its insiders sold 460 times as many shares as they bought.

Will NuScale's stock bounce back?

NuScale will generate most of its revenue from its front-end engineering and design (FEED) studies, licensing fees, and consulting work until it deploys its first commercial SMRs.

For 2026, analysts expect its revenue to rise 79% to $56 million, while narrowing its net loss to $164 million. For 2027, they expect its revenue to more than triple to $173 million with a slightly wider net loss of $171 million. That growth trajectory would be impressive, but it's already priced for perfection at 63 times this year's sales. That high valuation will limit its upside potential as long as the messy macro environment drives investors away from speculative growth stocks.

Leo Sun has no position in any of the stocks mentioned. The Motley Fool recommends NuScale Power. The Motley Fool has a disclosure policy.