NuScale Power Down From All-Time Highs -- What Investors Should Expect Next

NuScale Power (NYSE: SMR) has an exciting nuclear power technology. It has an approved design for a small modular nuclear reactor (SMR). There's just one problem. It hasn't actually sold a reactor yet. In other words, it is a money-losing nuclear power start-up. It is a risky stock that only the most aggressive investors should consider.

That said, with the stock down more than 75% from its 52-week and all-time high, what can investors expect from here? The answer isn't as clear-cut as you may like.

Image source: Getty Images.

NuScale Power has irons in the fire

NuScale Power is working with a Romanian utility that is attempting to build a nuclear power plant using six of NuScale's SMRs. RoPower has given the project the green light, which is great news. However, it still hasn't found the funding for the project, which is less positive news. Until the funding comes through, NuScale can't count this as a sale.

NuScale Power is also working with the Tennessee Valley Authority and ENTRA1 Energy. The plan is to build up to six gigawatts of nuclear capacity using NuScale Power SMRs. But this project remains in the planning stage, so it isn't a sale yet, either.

NuScale is ready to go, having put together the supply chain it needs to build its SMRs. Until it has its first sale, however, the supply chain and NuScale's ability to operate a manufacturing business remain untested.

NuScale needs a sale to get to the next level

NuScale Power's stock has largely been driven by news flow and investor sentiment. That's unlikely to change anytime soon, so investors should expect share price volatility to continue. Moreover, the company is a money-losing start-up, and that won't change soon, either. Even after it inks its first sale, it still has to build the nuclear reactors and deliver them. Basically, investors are playing a waiting game.

That said, the stock performance is telling. Last year, NuScale Power got swept up in the excitement around nuclear power. The rapid growth in electricity demand from artificial intelligence companies has resulted in many of the biggest players, such as Meta (NASDAQ: META) and Google, focusing on nuclear power. That's great news for the nuclear power industry, and it pushed all of the industry's boats higher, including NuScale Power. The stock was up roughly 200% at one point in 2025.

SMR data by YCharts

NuScale Power's stock has come back down to earth as the enthusiasm has worn off. The reality that it still hasn't made a solid sale hasn't helped. The fact that it will continue to lose money, even after the first sales agreement is finalized, is also problematic. And the story could get worse before it gets better, since the modest revenues NuScale Power generated from consulting services to RoPower to help the utility make its final investment decision on its nuclear project have fallen away now that the company has decided to move to the funding stage.

Expect another round of investor enthusiasm

That said, investors are likely to get excited about NuScale Power's prospects again after it finalizes its first sale. The stock will probably rally, even though it will still be a money-losing start-up with an untested technology. And since Wall Street tends to have a short attention span, the rally could fade, just as the one in 2025 did. Only the most aggressive investors should be considering NuScale Power right now. And if you do buy it, you'll need to take a long-term view because the company is still a long way from being sustainably profitable. All in, NuScale Power has a potentially exciting opportunity ahead, but it also has a lot to prove.

Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms. The Motley Fool recommends NuScale Power. The Motley Fool has a disclosure policy.