NuScale Power Corp (NYSE: SMR) has surged 33% in 2025, sharply outperforming the S&P 500’s 0.6% decline. The rally reflects rising investor confidence in NuScale’s unique position within the nuclear energy space, driven by surging electricity demand amid the AI boom and accelerating global electrification.
NuScale is at the forefront of small modular reactor (SMR) development—safer, factory-built alternatives to traditional nuclear plants. It holds the only U.S. Nuclear Regulatory Commission (NRC)-certified SMR design and benefits from the strategic and technical support of the majority owner, Fluor Corporation, giving it a distinct competitive edge. The stock’s momentum is fueled by a combination of regulatory advantage, project progress, and favorable macro trends. We explore these factors in more detail below.
While the stock’s upside is compelling, investing in a single, early-stage stock like NuScale carries inherent risks as well. On the other hand, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming the S&P 500 over the last 4-year period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index, less of a roller-coaster ride as evident in HQ Portfolio performance metrics.
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Timing and Relevance
Electricity demand in the U.S. is surging due to the proliferation of data centers and the shift toward electric vehicles. 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, forming a 462-megawatt nuclear plant. Pre-orders for long-lead-time parts are underway, and updates on this project will be closely watched. A final investment decision from RoPower is expected later this year—a potential catalyst for further stock movement. Additionally, NuScale anticipates NRC approval by July 2025 to boost its module capacity from 50 MWe to 77 MWe, and is in discussions with up to ten potential customers, targeting a firm customer order before year-end.
Strong Q1 Performance
NuScale’s first-quarter earnings exceeded expectations, reporting $13.4 million in revenue, a dramatic increase from $1.4 million a year ago and far ahead of analyst estimates of $3.4 million. This growth was driven by progress on its FEED Phase 2 Project with Fluor and a technology license agreement for Romania’s RoPower Doicesti power plant. Cost control measures also contributed to improved financials. Operating expenses fell to $42.3 million, down from $44.6 million, narrowing the operating loss from $44 million to $35.3 million.
Risks and Uncertainties
Despite recent momentum, NuScale remains a speculative investment facing several key challenges. The company contends with supply chain constraints, as the nuclear sector depends on a limited number of specialized suppliers, an obstacle that could hinder scalability. Project timelines are lengthy, with commercial deployment not expected until the early 2030s. Additionally, exposure to tariffs and rising construction costs poses further risks to NuScale’s long-term financial viability.
It should also be noted that stocks can drop sharply – 20%, 30%, even 50% –as we’ve seen during past market shocks. No stock is immune. Our dashboard How Low Can Stocks Go During A Market Crash captures how key stocks fared during and after the last six market crashes.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
