NuScale Power Corporation (SMR) Stock Analysis

NuScale Power’s principal competitive advantage is its status as the only small modular reactor (SMR) vendor with U.S. Nuclear Regulatory Commission (NRC) design approval. This regulatory milestone—achieved after a 41-month review—positions NuScale years ahead of U.S. and Western rivals such as TerraPower, X-energy, and Rolls-Royce, whose SMR designs remain unlicensed or in demonstration phases. Internationally, only Russian (Rosatom) and Chinese (CNNC) SMRs are operational, but these lack NRC approval and face limited acceptance in Western markets.

NuScale’s technology is based on proven light water reactor principles, reducing perceived technological risk compared to advanced designs requiring unproven fuels (e.g., TerraPower’s HALEU). Its modular design enables factory fabrication, shorter construction timelines, and scalability—key advantages over traditional gigawatt-scale nuclear plants. The company’s NRC Part 52 licensing pathway further streamlines customer plant approvals, lowering regulatory and financial risk.

NuScale’s supply chain is mature, with partners like Doosan able to produce up to 20 modules per year. The company’s exclusive commercialization partnership with ENTRA1 and a growing pipeline of advanced customer discussions, including with hyperscalers and utilities, reinforce its first-mover status. However, NuScale’s lack of binding customer contracts and ongoing operating losses remain material weaknesses. The company’s culture emphasizes regulatory rigor, safety, and operational discipline, supporting its credibility with risk-averse buyers.