NuScale Has One Overlooked Quality Worth Buying Into

NuScale Power (NYSE: SMR) is not going to appeal to most investors. But if you are a more aggressive growth investor, there are some interesting developments under the surface that you'll want to look at. In fact, the company is already preparing to start building small modular nuclear reactors (SMRs). All it needs is for that first customer to sign a contract. Here's what you should know.

NuScale Power isn't for the faint of heart

Shares of NuScale Power have fallen 80% from their 52-week high. If that's not enough to scare you away, then take into consideration that the nuclear power upstart is bleeding red ink and will likely do so for the foreseeable future. In fact, in the second quarter of 2026, it generated just $75,000 in revenue and an operating loss of $64 million.

Image source: Getty Images.

To be fair, NuScale is a start-up, so losses are to be expected. Still, the red ink highlights this investment's risk. However, for those willing to take on big risks for big potential rewards, NuScale may still be worth a deep dive in the nuclear power industry. A notable part of the story is the company's efforts to set itself up to manufacture the SMRs it hopes to one day produce. The company is building out its supply chain and already has parts that require long lead times being built. It is ready to hit the ground running.

The really big problem right now is that it doesn't have a signed sales contract. But it is working on it, with two potential customers lined up. Don't overlook this fact. At this point, RoPower has given the green light to a nuclear reactor project that could use six NuScale Power SMRs. RoPower hasn't signed on the dotted line because it is still looking for project financing. If it gets that financing, NuScale could quickly ink its first sale.

But that's not the only opportunity. The company is also working with ENTRA1 Energy and the Tennessee Valley Authority (TVA). NuScale could end up being a part of "the largest nuclear power deployment program in U.S. history." Once again, however, this is an iron in the fire, not a signed deal of any kind. But if ENTRA1 Energy and the TVA eventually move forward, it could be a very big deal for NuScale Power's business.

NuScale has more investment questions than answers, for now

There's no way to know when, or even if, NuScale Power will be able to convert sales leads into actual sales. So this is a high-risk investment, appropriate only for the most aggressive growth investors. Still, the dramatic price decline suggests that Wall Street's early excitement may have led now disillusioned investors to take an overly negative view of the stock. Once NuScale gets that first firm SMR sale, the long-term growth story here really starts to take shape.

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