Behind the Surge in NuScale Power’s Stock Price: Opportunity or Bubble?

NuScale Power股价暴涨背后:机遇还是泡沫?
Published on: Jun 6, 2025
Author: Amy Liu

According to data from S&P Global Market Intelligence, NuScale Power (SMR)‘s stock price soared 93% in May, and its cumulative increase over the past year has reached 347%. The small modular nuclear reactor (SMR) design company has a market value of $9 billion. Although it currently has zero revenue, the company has approved a design and benefited from the atmosphere of the US nuclear energy renaissance.

Nuclear Energy Renaissance Drives Stock Prices Up

Currently, the explosive growth of artificial intelligence (AI) data centers is driving up global electricity demand. In order to ensure energy supply, technology giants have signed long-term agreements with nuclear power companies. For example, Meta recently reached a cooperation with Constellation Energy (CEG) to lock in 1.1 gigawatts of nuclear power capacity. BMO Capital analysts raised the target price of Constellation Energy’s stock from $337 to $350 on Thursday (June 5), maintaining an “outperform” rating. At the same time, the US government is also promoting a nuclear power renaissance policy. The president also signed an executive order calling for a revival of the nuclear power industry.

Although NuScale Power has not yet achieved commercial operation (it is expected to be put into production in 2030 at the earliest), the market has regarded the stock as a nuclear power concept stock, driving the stock price soaring. This has nothing to do with the company’s almost zero financial situation. Moreover, this stock price rise is out of touch with the company’s fundamentals-NuScale is still in the cash-burning stage, consuming about $100 million in cash flow each year, and it is difficult to make a profit in the short term. Even without any sales revenue, the company’s market value is close to $10 billion.

Investment Caution

Small modular reactor (SMR) technology is regarded as a revolutionary breakthrough in the nuclear energy industry, and NuScale Power is trying to establish its leadership in this emerging field with its unique design concept and the advantage of being the first to obtain regulatory approval. Although SMR technology has potential, it has not been verified on a large scale. Investors are currently buying NuScale shares, more like betting on a scientific experiment than a mature enterprise.

Some analysts believe that the surge in NuScale Power’s stock price reflects market sentiment more than actual value. Investors are betting that this company with a market value of $8.9 billion will have a certain value for a long time to come.

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