NuScale Stock: Big Gains, Bigger Risks
NuScale Power Corp (NYSE: SMR) has rocketed roughly 200% over the past year, far outpacing the S&P 500’s 16% gain. The surge reflects growing investor confidence in NuScale’s unique position in the nuclear energy space, fueled by rising electricity demand from AI infrastructure and the broader global push toward electrification.
NuScale is a pioneer in small modular reactors (SMRs)—factory-built, safer alternatives to traditional nuclear plants. It holds the only U.S. Nuclear Regulatory Commission (NRC)-certified SMR design and enjoys strategic and technical backing from majority owner Fluor Corporation, giving it a clear competitive advantage. Momentum in the stock has been supported by regulatory milestones, project progress, and favorable macro trends, which we break down below.
Yet, while the upside is compelling, this is still an early-stage, high-volatility stock. Investors should weigh the potential risks alongside the opportunities. On the other hand, the Trefis High Quality Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming the S&P 500 over the last 4-year period — and has achieved returns exceeding 91% since its inception. . Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index, and less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.
Timing and Relevance
Electricity demand in the U.S. is surging, driven by data centers and electric vehicles, and nuclear energy is regaining relevance as a reliable, carbon-free alternative to fossil fuels. NuScale is preparing to supply six SMRs to Romania’s RoPower, creating a 462-megawatt nuclear plant, with long-lead-time parts already on order. Regulatory progress has been notable: in Q2 2025, NuScale received NRC Standard Design Approval for its uprated 77 MWe SMR design.
Investor enthusiasm has been fueled by the historic August 2025 agreement with the Tennessee Valley Authority (TVA)—the largest SMR power commitment in U.S. history—which positions NuScale as a key supplier for domestic nuclear infrastructure. This, combined with bipartisan support for nuclear energy and executive orders aimed at reviving the sector, has kept NuScale in the spotlight, especially as demand for energy to power AI and high-tech infrastructure grows.
Strong Q2 Performance
NuScale reported revenue of $8.1 million in Q2 2025, up from $1.0 million a year ago, reflecting tangible progress on early-stage commercialization. The company posted a net loss of $0.13 per share, slightly wider than the $0.12 analysts expected. Cash reserves remain robust at $489.9 million as of June 30, 2025, providing a buffer to fund operations and strategic initiatives.
Key risks
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