Investment Opportunity: Buy NuScale Power Stock Prior to August
In the rapidly evolving nuclear energy sector, NuScale Power is making significant strides in the small modular reactor (SMR) market. According to Precedence Research, the global SMR market is expected to grow at a Compound Annual Growth Rate (CAGR) of 8.9% from 2025 to 2034, with NuScale poised to capitalise on this growth.
NuScale's revenue is predicted to surge at a CAGR of 118% from $37 million to $384 million from 2024 to 2027, as the company makes significant progress in expanding its SMR footprint.
One of NuScale's key developments is the proposed construction of six SMRs in Idaho, with a combined generating capacity of 462 megawatts. This project, if successful, could supply power not only across Idaho but also to neighbouring states such as Oregon, Wyoming, Nevada, and California. The first of these SMRs, a VOYGR-6 comprising six of NuScale's 77 MWe modules, is planned to be operational by 2030 at the Idaho National Laboratory. South Korean partner Doosan Enerbility will manage the modular construction to optimise efficiency and cost reduction through prefabrication techniques.
NuScale leads the SMR industry with its proprietary NuScale Power Module™, an advanced, small, safe, pressurized water reactor producing 77 megawatts electric each. The design is scalable up to 12 modules for a total of 924 megawatts, providing flexibility for various energy needs. It is the first and only SMR design certified by the U.S. Nuclear Regulatory Commission, positioning NuScale advantageously for domestic and international customers across applications such as electrical generation, data centres, district heating, desalination, and hydrogen production.
The company's growth is driven by several factors, including international collaborations, political and regulatory support, and environmental and energy transition trends. For instance, the recent UK-Czech Republic initiative exploring SMRs, including NuScale’s technology, underscores growing international interest and validation of SMRs. Additionally, U.S. executive orders, notably from President Trump in 2024-2025, have strongly advanced the nuclear energy sector, stimulating investor confidence and market momentum for NuScale.
NuScale's stock has exhibited significant gains in recent years, reflecting investor optimism prompted by political support and technological milestones. However, the cancellation of a major nuclear reactor project in Idaho in 2023 rattled investors, though NuScale submitted a new application for an SDA for a 77 MWe design in response.
The company's financial position is strong, with a market cap of $5.2 billion and $521 million in cash, cash equivalents, and short-term investments at the end of its latest quarter. NuScale is currently generating revenue from a project in Romania, working as a subcontractor for Fluor in the development of a 462-MWe VOYGR-6 SMR. The project is expected to receive a final investment decision (FID) in 2026, which should pave the way for the construction of the actual plants and boost NuScale's overseas revenue.
NuScale's small modular reactors are prefabricated, delivered, and assembled on site, allowing for faster installation and suitability in areas not suited for traditional nuclear reactors. The energy needs of the cloud and artificial intelligence markets are expected to support NuScale's rapid expansion. The Department of Energy has allocated $900 million to accelerate the development of SMRs, which could benefit NuScale.
In conclusion, NuScale's expansion plans are robustly advancing, aiming for operational deployment around 2030 with scalable and versatile SMR technology that aligns well with emerging global decarbonization trends. Key growth catalysts include international partnerships, regulatory approvals, political support for nuclear energy, and pioneering initiatives combining energy production with environmental solutions like hydrogen and desalination.
- The financial growth of NuScale Power is projected to experience a CAGR of 118% from 2024 to 2027, coinciding with the company's advancements in the small modular reactor (SMR) industry, as they expand their SMR footprint globally.
- With the increasing interest in small modular reactors, NuScale Power is poised to capitalize on the anticipated growth of the global SMR market, which is expected to grow at a CAGR of 8.9% from 2025 to 2034.
- The technological advancements in the finance, energy, and technology sectors are expected to support NuScale Power's rapid expansion, as the energy needs of cloud and artificial intelligence markets align with their scalable and versatile SMR technology.
