Key Takeaways
- NuScale Power (SMR) shares rallied following Amazon’s announcement of agreements to deploy SMR technology for powering AI infrastructure
- In February, Romania granted Final Investment Decision approval for NuScale’s 462-megawatt facility, advancing the project from planning to execution phase
- The Romanian project’s funding package — valued at approximately $7 billion — could be finalized within six months of mid-February, suggesting a possible announcement by August’s end
- Bank of America resumed coverage with a Neutral stance and $12 target, acknowledging NuScale’s regulatory advantage while noting sluggish deal progression
- NuScale holds the exclusive distinction of having received U.S. NRC Standard Design Approval for small modular reactor technology, positioning it ahead of rivals
NuScale Power (SMR) is currently changing hands near $11.40, reflecting a roughly 27% decline since the year began, though recent spring developments have market participants focused intently on the coming summer months.
NuScale Power Corporation, SMR
Shares experienced a notable uptick last week following Amazon’s disclosure of agreements to utilize small modular reactor technology for its artificial intelligence data center operations. NuScale, recognized as a leading player in the SMR sector, benefited from the enthusiasm surrounding this announcement.
Trading activity in SMR shares reached 30.2 million on the day Amazon made its announcement, compared to the typical 28.9 million average — demonstrating the rapid shifts in investor sentiment this sector can experience.
However, the more fundamental catalyst could be emerging from Romania.
Romania’s energy minister declared a Final Investment Decision in February for NuScale’s 462-megawatt SMR facility in Doicești. The initiative would substitute 600 MW of coal-based generation with clean, reliable power utilizing six NuScale units.
This decision transitioned the project from assessment to active development. The remaining requirement is securing financial backing.
Romanian Prime Minister Ilie Bolojan estimated the construction budget at approximately $7 billion. He exercised caution regarding timelines, noting the funding structure remained incomplete and acknowledging that “the complexity of such projects and the technology being in early days” indicated the capital commitment wouldn’t materialize instantly.
Yet Romania’s energy minister provided more concrete guidance: the financing period would span approximately six months starting mid-February. Based on this timeline, a potential announcement could materialize around mid-to-late August.
Bank of America Takes Neutral Stance
Bank of America resumed coverage of NuScale on May 22, assigning a Neutral rating alongside a $12 price objective.
The analyst recognized NuScale’s competitive advantage — being the sole SMR developer possessing U.S. Nuclear Regulatory Commission Standard Design Approval, which establishes a “clear credibility lead versus peers.”
However, BofA also identified genuine limitations. Revenue generation remains dependent on services rather than reactor construction. Initial reactor operation isn’t anticipated until the early 2030s. Additionally, the rate of transforming signed agreements into definitive contracts has trailed expectations.
This final point deserves attention. NuScale maintains a project pipeline featuring a 6-gigawatt arrangement with ENTRA1 and the Tennessee Valley Authority covering the eastern United States. The number of these advancing to binding commitments will prove significant.
The Small Modular Reactor Proposition
NuScale’s value proposition is clear: SMRs offer faster construction timelines and lower costs compared to traditional nuclear facilities, plus they’re modular — enabling incremental capacity expansion.
In 2023, NuScale achieved a milestone as the first American company securing NRC Standard Design Approval for small modular reactor technology. This represents a significant regulatory achievement accomplished ahead of any competitor.
SMR’s 52-week trading range extends from $8.85 to $57.42 — a substantial variance illustrating the dramatic sentiment fluctuations surrounding this equity over the past year.
The upcoming months could prove decisive. Should Romania’s financing materialize according to schedule, NuScale would possess one of its largest pipeline projects with both regulatory clearance and capital secured.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
