NuScale Power, the only U.S. nuclear energy company with a government-approved design for small modular reactors (SMRs), has seen its stock plummet approximately 75% from an all-time high of $57 to around $12. Despite this decline, the company maintains a market cap of $4 billion, which remains high considering its modest revenue of $30 million over the first nine months of 2025. Investors are left questioning the feasibility of the stock reaching $120, given that it would require a tenfold increase in market cap alongside substantial revenue growth.
For NuScale to justify a $40 billion market cap, it would need to generate roughly $1.7 billion in annual revenue, necessitating the deployment of about 30 operating SMRs. This is a daunting task, especially since the company has yet to sell a single reactor. The current speculative nature of NuScale’s stock hinges on its ability to start delivering on its projects, particularly in Romania and with the Tennessee Valley Authority.
Market professionals should approach NuScale Power with caution, recognizing its potential for growth but also the significant hurdles it faces in scaling operations and achieving profitability. Investors may want to consider alternatives, as highlighted by analysts who have identified ten other stocks with stronger fundamentals.
Source: nasdaq.com